Home Protection Scheme HPS: Complete HDB Buyers Guide | Homejourney
The Home Protection Scheme (HPS) is a mandatory mortgage insurance for HDB flat buyers using CPF savings, protecting families from losing their home due to death, terminal illness, or total permanent disability.[5][1]
This definitive Homejourney guide covers HPS eligibility, premiums, exemptions, and practical steps for Singapore HDB buyers, positioning us as your trusted partner for safe property decisions.
Table of Contents
- Executive Summary
- What is the Home Protection Scheme?
- HPS Eligibility and Compulsory Nature
- How HPS Works: Coverage and Claims
- HPS Premiums and CPF Deductions
- Applying for HPS Exemption
- Adjusting HPS Coverage
- HPS vs Mortgage Insurance Alternatives
- Step-by-Step HPS Application Process
- 5 Common HPS Mistakes HDB Buyers Make
- HPS Statistics and Market Insights
- Frequently Asked Questions
- Next Steps with Homejourney
Executive Summary: Why HPS Matters for HDB Buyers
For first-time HDB buyers in Singapore, the Home Protection Scheme (HPS) safeguards your family's homeownership by covering your outstanding HDB loan in tragedies like death or terminal illness.[1][5]
Managed by CPF Board and underwritten by income insurers, HPS premiums deduct automatically from your CPF Ordinary Account (OA), ensuring low-cost protection until age 65 or loan repayment.[2][5]
Homejourney verifies this information from official CPF and HDB sources to help you make confident decisions, integrating seamlessly with our bank rates page for full HDB financing transparency.MRTA vs Term Insurance: Homejourney Application Benefits
What is the Home Protection Scheme?
The Home Protection Scheme (HPS), also called HPS HDB or CPF HPS, is a mortgage-reducing term insurance exclusively for HDB flat owners using CPF for loan repayments.[1][3][5]
It pays the insured sum directly to HDB or your bank to settle the outstanding loan balance, preventing repossession if the owner dies, is diagnosed with terminal illness, or suffers total permanent disability (TPD).[2][4]
Unlike general life insurance, HPS is not a cash payout but targets mortgage protection, making it HDB insurance tailored for Singapore's public housing system.[3]
Launched in 1982, HPS has protected over 1 million CPF members, reflecting Singapore's commitment to housing security.[5]
Key Features of HPS
- Mortgage-Reducing: Coverage decreases as your loan principal reduces.[1]
- Low Premiums: Among the market's lowest, deducted from CPF OA.[2]
- Until 65: Coverage ends at age 65 or full loan repayment, whichever first.[3]
- HDB-Only: Not for private properties like condos or ECs.[3][4]
HPS Eligibility and Compulsory Nature
HPS is compulsory for all CPF members buying HDB flats and using CPF savings (fully or partially) for monthly installments.[1][2][5]
Eligibility requires: Singapore citizenship or PR status, CPF contributions, and good health (may need medical exam).[2]
For joint owners, total coverage must be at least 100% of the loan; equal shares mean 50% each.[1]
| Owner Type | Eligibility | Compulsory? |
|---|---|---|
| First-Time HDB Buyer (CPF Used) | Yes, automatic enrollment option | Yes[1][5] |
| Cash-Only Payment | Eligible but optional | No[3] |
| Private Property Owner | Not eligible | N/A[4] |
Homejourney tip: Check your eligibility via CPF portal or our mortgage calculator alongside HPS needs.
How HPS Works: Coverage and Claims
Upon a covered event, HPS pays your share of the outstanding HDB loan directly to HDB/bank, ensuring family retains the flat.[2][5]
Example: $300,000 loan, you cover 50% ($150,000). If TPD occurs with $50,000 outstanding on your share, HPS pays $50,000.[1]
Covered Events
Claims process: Notify CPF within 1 year; payout within weeks post-verification.[2]
HPS Premiums and CPF Deductions
Premiums are affordable, deducted annually from CPF OA; rates depend on age, gender, loan amount, and tenure.[1][2]
For a 30-year-old male with $300,000 loan: ~$200-300/year initially, decreasing over time.[1]
If OA insufficient, pay cash or face coverage lapse. View status in CPF Home Ownership Dashboard.[2]
| Age at Entry | Sample Annual Premium ($300k Loan) | Male | Female |
|---|---|---|---|
| 30 | Low Risk | $250 | $200 |
| 45 | Medium Risk | $450 | $350 |
| 55 | High Risk | $800 | $600 |
Note: Actual rates from CPF; use Homejourney's bank-rates for full HDB loan simulations including HPS.
Applying for HPS Exemption
Exemption possible if you have equivalent coverage like term life, whole life, endowment, or MRTA covering loan till 65.[3]
Submit via CPF with policy proofs; if coverage lapses, HPS reinstates automatically.[3]
Homejourney insight: Many opt for exemption with cheaper private mortgage insurance HDB alternatives, but verify sufficiency.MRTA vs Term Insurance for Mortgage Protection: Homejourney's 2026 Guide
Exemption Requirements
- Policy covers 100% loan share.
- Term to age 65 or loan end.
- No gaps in coverage.[3]
Adjusting HPS Coverage
Adjust for: loan restructuring, refinancing, sale, or redemption.[1]
Notify CPF to reduce/increase cover; premiums adjust accordingly.[1]
For HDB loan refinancing to banks, HPS remains if CPF used; pair with bank mortgage insurance HDB options via Homejourney.
HPS vs Mortgage Insurance Alternatives
HPS suits HDB; private owners need MRTA or term assurance.[4]
| Feature | HPS | MRTA | Term Life |
|---|---|---|---|
| HDB Only | Yes | Yes/No | Flexible |
| Premium | CPF Deduct | Single/Annual | Annual |
| Payout | Loan Only | Loan Only | Cash |
Compare via Homejourney for personalized advice.MRTA vs Term Insurance for Mortgage Protection: FAQs | Homejourney
Step-by-Step HPS Application Process
For new buyers: Auto-offered at HDB purchase; approve via HDB Form HPS/9 (5 days processing).[2]
- Submit at HDB flat booking.
- Medical check if required.
- Premium deducts post-ownership (2 weeks).[2]
- Receive certificate; check CPF dashboard.
Existing owners: Apply via CPF portal. Homejourney streamlines with property search and financing tools.
5 Common HPS Mistakes HDB Buyers Make
- Assuming Optional: Compulsory with CPF use.[1]
- Ignoring Adjustments: Forget post-refinance.[1]
- Overlooking Exemptions: Cheaper alternatives exist.[3]
- Not Monitoring CPF OA: Lapse risk.[2]
- Confusing with Fire Insurance: HPS is mortgage-only.[3]
HPS Statistics and Market Insights
In 2025, over 80% of HDB loans used CPF, making HPS universal for most buyers. Premiums rose 5% with interest rates, but remain under $500/year average.[5]
Homejourney analysis: Pair HPS with MSR/TDSR checks via our bank-rates for DBS, OCBC, UOB packages.
For refinancing, use Singpass on Homejourney for instant eligibility including HPS status.
Frequently Asked Questions on Home Protection Scheme
Is HPS compulsory for all HDB buyers?
Yes if using CPF for installments; no if cash-only.[1][5]
What is the cost of HPS?
Varies by age/loan; e.g., $250/year for young buyer on $300k loan, CPF deducted.[1][2]
Can I cancel HPS?
Exempt with equivalent coverage; reinstates if insufficient.[3]
Does HPS cover private properties?
How do I check HPS status?
CPF Home Ownership Dashboard.[2]
What if I refinance HDB loan to bank?
HPS continues if CPF used; adjust coverage.[1]
Is medical exam needed for HPS?
Possibly for older applicants.[2]
HPS vs MRTA: Which better?
HPS cheaper for HDB; MRTA for flexibility. Compare on Homejourney.MRTA vs Term Insurance: Boost Your Mortgage Approval with Homejourney
Next Steps: Secure Your HDB Journey with Homejourney
Verify HPS needs with our bank rates comparison from DBS, OCBC, UOB, HSBC – apply via Singpass for instant quotes including insurance.
Search HDB flats in budget at property search; post-purchase, explore aircon services for maintenance.
Homejourney prioritizes your safety with verified data, transparent tools, and customer feedback-driven improvements for trusted transactions.
Disclaimer: This guide is for information; consult CPF/HDB for personalized advice. Rates as of 2026.
