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MRTA vs MLTA: Which Is Better for Your Home Loan? (2026)
By Louis Ong · 8 min · 10 Feb 2026
The short answer
MRTA is cheaper and shrinks with your loan — good for protecting the bank on one property. MLTA costs more but keeps a level payout, has cash value and is portable — better if you want your family to benefit. Many use a mix.
You just got your home loan approved. Then the bank asks whether you want MRTA. Before you sign, here's the ten-minute version.
MRTA vs MLTA at a glance
| Feature | MRTA | MLTA |
|---|---|---|
| Coverage | Reduces with loan | Stays level |
| Payout to | Bank | Bank + family surplus |
| Premium | Lower | Higher |
| Cash value / portable | No | Yes |
Example: loan RM300,000, MLTA cover RM500,000 → the bank gets RM300k and your family keeps RM200k.
Is MRTA compulsory?
Not by law. Some banks require some cover, but you can usually choose MLTA instead. Ask for any requirement in writing.
See our full home loan & refinancing protection advice for how this fits your wider plan.