Home Protection Scheme HPS: Complete HDB Buyers Guide | Homejourney
The Home Protection Scheme (HPS) is 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.[1][7]
This definitive Homejourney pillar guide exhaustively covers HPS eligibility, premiums, exemptions, claims, and practical steps, positioning us as your trusted partner for safe HDB purchases in Singapore.[1]
Executive Summary: Why HPS Matters for HDB Buyers
For first-time HDB buyers, Home Protection Scheme (HPS) – also known as HPS HDB or CPF HPS – safeguards your family's homeownership by covering outstanding HDB loans in tragedies.[1][5][7]
Managed by CPF Board and underwritten by Income Insurance, premiums deduct automatically from CPF Ordinary Account (OA) at low rates until age 65 or loan repayment.[1][2][7]
Homejourney verifies all HPS details to help you make confident decisions, integrating seamlessly with our bank rates page for full HDB financing transparency.[1]
Table of Contents
- What is the Home Protection Scheme?
- HPS Eligibility and Compulsory Nature
- How HPS Works: Coverage and Claims
- HPS Premiums and Costs Explained
- HPS Exemptions and Alternatives
- Step-by-Step HPS Application Process
- HPS vs Other Mortgage Insurance (MRTA, Term Insurance)
- Common HPS Pitfalls and Insider Tips
- Frequently Asked Questions (FAQ)
- Next Steps with Homejourney
What is the Home Protection Scheme?
Home Protection Scheme (HPS), or HPS HDB, is mortgage-reducing term insurance exclusively for HDB flat owners using CPF for loan repayments.[1][2][3]
Launched in 1982 by CPF Board, it pays the outstanding loan balance directly to HDB or banks upon death, terminal illness, or total permanent disability (TPD), preventing repossession.[1][5][7]
Unlike cash payout life insurance, HPS is HDB insurance tailored for Singapore's public housing, with coverage decreasing as loan principal reduces.[1][4]
Over 1 million CPF members protected, HPS forms Singapore's housing safety net.[1][2]
Key Features of HPS
- Mortgage-Reducing Coverage: Sum assured drops with loan balance.[1][2]
- Low CPF-Deducted Premiums: Among cheapest options, auto-deducted from OA.[1][5]
- Protection Until 65: Ends at age 65 or full repayment, whichever earlier.[2][3][7]
- HDB-Only: Excludes condos, ECs, private properties.[1][3][4]
- Joint Coverage: Total owners' coverage ≥100% of loan.[2][3][4]
Who Underwrites HPS?
Administered by CPF Board, underwritten by Income Insurance Corporation Limited. Claims paid directly to HDB/bank.[1][7]
HPS Eligibility and Compulsory Nature
HPS is compulsory for CPF members buying HDB flats and using CPF (fully/partially) for installments.[1][2][5][7]
Exempt only with approved alternatives covering equivalent loan protection until 65.[2][5]
Eligibility Criteria
| Criteria | Details |
|---|---|
| Status | Singapore Citizen/PR with CPF contributions[2][7] |
| Property | HDB flat only[1][3] |
| Health | Good health; medical exam if needed[2][3] |
| Loan Payment | Using CPF OA for HDB/HDB-concessionary loan[1][5] |
| Age | Under 65 at coverage end[2][7] |
False health declarations risk policy cancellation, non-refundable premiums.[2]
How HPS Works: Coverage and Claims
HPS covers your share of outstanding loan; total co-owners ≥100%.[1][2][4]
Example: $400,000 HDB loan in Punggol, you/spouse each 50% ($200,000). If TPD with $100,000 outstanding on your share, HPS pays $100,000 to HDB.[1][5]
Covered Events
- Death[1][2][7]
- Terminal illness (doctor-certified, <12 months life expectancy)[1][4]
- Total Permanent Disability (TPD: unable to work, certified)[2][5]
Claims: Notify CPF within 1 year; verification then payout in weeks.[2][7]
Coverage Example Table
| Year | Outstanding Loan | Your Share (50%) | HPS Coverage |
|---|---|---|---|
| 1 | $400,000 | $200,000 | $200,000[1] |
| 10 | $320,000 | $160,000 | $160,000[1] |
| 25 | $200,000 | $100,000 | $100,000[1] |
HPS Premiums and Costs Explained
Premiums based on age, coverage amount, gender; deducted monthly from CPF OA.[1][2]
2026 rates (indicative, check CPF): Age 30 male, $200k coverage: ~$40-50/month; female slightly higher.[1]
Homejourney's mortgage calculator factors HPS into affordability.[1]
Premium Factors
- Age at entry (higher age = higher premium)[2]
- Sum assured (your loan share)[1]
- Gender (females slightly higher)[1]
- Smoker status (if applicable)[2]
No cash payment needed; uses CPF savings seamlessly.[7]
HPS Exemptions and Alternatives
Exempt if alternative policies cover outstanding loan until 65/repayment.[2][5]
Apply post-loan disbursement via CPF portal: My Requests > HPS > Exemption.[2]
Exemption Requirements
- Equivalent coverage (e.g., MRTA, term insurance)[5]
- Until age 65 or loan end[2]
- Mortgage-reducing or level term matching loan[5]
- Approved by CPF Board[2]
If alternative lapses, HPS reinstates automatically.[2][5] See MRTA vs Term Insurance: Homejourney Application Benefits ">MRTA vs Term Insurance for comparisons.[1]
When HPS Ends
Step-by-Step HPS Application Process
For new HDB buyers: Automatic at resale/BOF, sign HPS/9 form.[1][2]
- At HDB Booking: Offered HPS; declare health.[2]
- Medical (if needed): Exam/report submit.[2]
- Approval: 5 days processing.[1]
- Key Collection: Premium starts 2 weeks post-ownership.[2]
- Certificate: Via CPF dashboard/Singpass.[2]
Existing owners/refinance: Apply via CPF portal. Use Homejourney's property search to find flats within budget including HPS.[1]
HPS vs Other Mortgage Insurance (MRTA, Term Insurance)
HPS mandatory for CPF/HDB; alternatives for exemptions or bank loans.[1][5]
| Feature | HPS | MRTA | Term Insurance |
|---|---|---|---|
| Cost | Lowest, CPF deducted[1] | Single premium, higher[5] | Flexible, potentially cheaper[5] |
| Coverage | Loan share only[2] | Full loan[5] | Customizable[5] |
| Portability | HDB only[1] | Tied to loan[5] | Portable[5] |
| HDB Mandatory? | Yes for CPF[7] | No, exemption option[2] | No, exemption option[2] |
For bank loans, compare via Homejourney bank-rates including insurance options.[1] Explore MRTA vs Term Insurance: Best Mortgage Protection Guide | Homejourney ">best mortgage protection.[1]
Common HPS Pitfalls and Insider Tips
Insider tip: Check CPF OA balance pre-purchase; HPS deductions impact housing grants.[1]
- Pitfall: Underestimating premiums for larger loans (e.g., $500k BTO in Tengah).[1] Tip: Use Homejourney calculator.
- Pitfall: Exemption denial due to insufficient alternative coverage.[2] Tip: Verify with CPF first.
- Pitfall: Forgetting health declaration accuracy.[2] Tip: Disclose all for claim validity.
- Pitfall: Not updating after refinance.[2] Tip: Reapply exemption post-disbursement.
- Pro Tip: First-time buyers in Yishun: HPS + fire insurance mandatory; bundle via trusted sources like Homejourney.[1][9]
Homejourney prioritizes safety: Our verified data ensures no surprises in your HDB journey.[1]
Frequently Asked Questions (FAQ): Home Protection Scheme HPS
Is HPS compulsory for all HDB buyers?
Yes, if using CPF for payments; exemptions possible with alternatives.[1][2][5][7]
How much does HPS cost?
Varies by age/coverage; e.g., 35yo, $250k: ~$50/month from CPF OA. Check CPF portal for quote.[1][2]
Can I cancel HPS?
Only via exemption with equivalent coverage; reinstates if lapsed.[2][5]
What if I refinance my HDB loan?
Reapply exemption post-refinance; coverage adjusts to new loan.[2]
Does HPS cover bank loans on HDB?
Yes, if using CPF payments.[1][5]
HPS vs MRTA: Which is better?
HPS cheaper for CPF users; MRTA for full/single premium. See MRTA vs Term Insurance for Mortgage Protection: FAQs | Homejourney ">FAQs.[5]
Can PRs get HPS?
Yes, with CPF contributions.[2][7]
How to check HPS status?
Via Singpass CPF dashboard.[2]
Next Steps: Secure Your HDB Journey with Homejourney
Ready for HDB? Start with Homejourney's bank rates page: Compare DBS, OCBC, UOB rates; calculate eligibility including Home Protection Scheme; apply multi-bank via Singpass.[1]
Search verified properties on property search; plan maintenance with Aircon Services ">aircon services. Homejourney builds trust through transparency, feedback-driven improvements, and user safety.[1]
Disclaimer: This guide provides general info; consult CPF/HDB/professionals for advice. Rates as of 2026; subject to change.[1][7]
References
- Singapore Property Market Analysis 1 (2026)
- Singapore Property Market Analysis 7 (2026)
- Singapore Property Market Analysis 5 (2026)
- Singapore Property Market Analysis 2 (2026)
- Singapore Property Market Analysis 3 (2026)
- Singapore Property Market Analysis 4 (2026)
- Singapore Property Market Analysis 9 (2026)
