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 to service their loans, ensuring families don't lose their home due to death, terminal illness, or total permanent disability.
Homejourney's definitive pillar guide covers everything from eligibility and premiums to exemptions and claims, empowering Singapore HDB buyers with verified information for safe, confident decisions in a trusted environment.[1][5]
As your partner prioritizing user safety and transparency, Homejourney verifies key details so you can focus on building your future without financial worries.
Table of Contents
- What is the Home Protection Scheme?
- HPS Eligibility and Compulsory Nature
- How HPS Works: Coverage and Claims
- HPS Premiums, Costs, and CPF Deductions
- HPS Exemptions and Alternatives
- Step-by-Step HPS Application Process
- Adjusting HPS Coverage: Refinancing and Changes
- HPS vs Private Options: MRTA and Term Insurance
- Common Pitfalls and Insider Tips for HDB Buyers
- Frequently Asked Questions (FAQ)
- Next Steps with Homejourney
What is the Home Protection Scheme?
Home Protection Scheme (HPS), also known as HPS HDB or CPF HPS, is a mortgage-reducing term insurance scheme administered by the CPF Board exclusively for HDB flat owners using CPF savings for loan repayments.[1][2][5]
Launched in 1982, HPS protects over 1 million CPF members by paying the outstanding HDB loan balance directly to HDB or the bank upon the policyholder's death, terminal illness, or total permanent disability (TPD), preventing home repossession.[1][5][7]
Unlike traditional life insurance with cash payouts, HPS is specialized HDB insurance where coverage decreases as the loan principal reduces, aligning perfectly with Singapore's public housing model.[1][3]
Key Features of HPS
- Mortgage-Reducing Coverage: Sum assured mirrors remaining loan balance.[1][2]
- Low CPF-Deducted Premiums: Automatically deducted from Ordinary Account (OA), among the cheapest options.[1][3]
- Protection Until Age 65: Ends at 65 or full loan repayment, whichever comes first.[2][5]
- HDB-Only: Does not cover condos, Executive Condominiums (ECs), or private properties.[1][3][4]
- Joint Coverage for Couples: Combined coverage of all owners must be at least 100% of the loan.[1][2]
For example, in a typical Punggol BTO flat with a $400,000 HDB loan, spouses each cover 50% ($200,000 initially), ensuring full protection.[1]
HPS Eligibility and Compulsory Nature
HPS is compulsory for all CPF members buying HDB flats who use CPF savings (fully or partially) for monthly installments.[1][2][5]
Exemptions are possible only with CPF Board-approved alternative coverage providing equivalent protection until age 65 or loan completion.[2][3]
HPS Eligibility Criteria
| Criteria | Details |
|---|---|
| Status | Singapore Citizen or PR with CPF contributions[1][5] |
| Property Type | HDB flats only (no ECs or private properties)[1][3] |
| Health | Good health declaration; medical exam if over certain age or high-risk[2] |
| Loan Payment | Using CPF OA for HDB or concessionary loan repayments[1][5] |
| Age Limit | Coverage ends at 65[2][5] |
False health declarations can lead to policy cancellation with no premium refunds. Always declare accurately for family protection.[2]
How HPS Works: Coverage and Claims
HPS covers each owner's share of the outstanding loan, with total co-owners' coverage equaling at least 100%.[1][2]
Real-world example: For a $400,000 resale HDB in Yishun with 50/50 ownership, if one spouse suffers TPD when $100,000 remains on their share, HPS pays $100,000 directly to HDB, easing the burden on the surviving spouse.[1][3]
Covered Events Under HPS
- Death: Full payout of insured share.[1][5]
- Terminal Illness: Doctor-certified with less than 12 months life expectancy.[1][4]
- Total Permanent Disability (TPD): Certified inability to work in any occupation.[2][5]
Claims process: Notify CPF Board within 1 year of event; documents verified, payout within weeks directly to lender.[2][5]
HPS does not cover fire, contents, or other risks—pair with HDB fire insurance for comprehensive protection.[7]
HPS Premiums, Costs, and CPF Deductions
Premiums are low and deducted monthly from your CPF Ordinary Account (OA), making mortgage insurance HDB seamless.[1][3]
For a couple aged 30 with $400,000 loan, combined annual premium is around $272 (2026 rates), or ~$23/month total—far cheaper than private equivalents.[3]
HPS Premium Examples (2026 Estimates)
| Loan Amount | Age 30 (Annual, Couple) | Age 45 (Annual, Couple) |
|---|---|---|
| $300,000 | $200 | $350 |
| $400,000 | $272 | $480 |
| $500,000 | $340 | $600 |
Premiums may qualify for rebates during strong economic periods. Check your CPF OA balance via Singpass to avoid shortfalls.[3][5]
Homejourney tip: Factor HPS into your budget using our mortgage calculator for accurate affordability.Projects
HPS Exemptions and Alternatives
Exemptions require equivalent mortgage-reducing or level term coverage until 65/loan end, approved by CPF Board.[2][5]
If alternatives lapse or fall short, HPS auto-reinstates to safeguard your home.[2][3]
Exemption Requirements
- Matching coverage amount and term.[5]
- Approved providers (e.g., private insurers).[2]
- Annual proof submission if requested.[3]
Explore options like MRTA or term insurance. For comparisons, see MRTA vs Term Insurance: Best Mortgage Protection Guide | Homejourney ">MRTA vs Term Insurance: Best Mortgage Protection Guide | Homejourney.[1]
Step-by-Step HPS Application Process
For new HDB buyers, HPS activates automatically at resale flat booking or Board of Option Fee (BOF).[1][2]
- At HDB Flat Booking: Sign HPS/9 form and declare health.[2]
- Medical Check (if required): Submit exam report for older applicants.[2]
- CPF Approval: Processed in 5 working days.[1]
- Key Collection: Premiums start 2 weeks after ownership transfer.[2]
- Certificate Access: View via CPF dashboard or Singpass.[5]
For refinancing or existing owners, apply online via CPF portal. Use Homejourney's property search to find HDB flats fitting your HPS-inclusive budget.[1]
Adjusting HPS Coverage: Refinancing and Changes
Life changes like loan restructuring, refinancing, or selling require HPS adjustments.[2]
- Capital Repayment: Reduces coverage automatically.[2]
- Refinancing: Update share via CPF; check bank rates for best options from DBS, OCBC, UOB.[2]
- Loan Redemption: HPS ends upon full repayment.[1]
- Ownership Changes: Notify CPF within 30 days.[5]
Insider tip: When refinancing an older Tengah BTO, time adjustments post-Homejourney bank rates comparison to minimize premiums.[1]
HPS vs Private Options: MRTA and Term Insurance
HPS suits most HDB buyers for its low cost and CPF integration, but private Mortgage Reducing Term Assurance (MRTA) or term insurance offers flexibility for exemptions.[3]
MRTA pays loan balance on covered events; term insurance provides cash for broader uses. Compare via MRTA vs Term Insurance: Homejourney Mortgage Protection Benefits ">MRTA vs Term Insurance: Homejourney Mortgage Protection Benefits.[1]
- HPS Pros: Cheapest, automatic, no medical for young buyers.[1]
- Private Pros: Portable to private property, customizable.[3]
- Cons of Exemption: Higher premiums, admin hassle.[2]
Homejourney recommends HPS for first-time buyers unless you plan upgrading to private property soon.
Common Pitfalls and Insider Tips for HDB Buyers
Avoid these traps: Underestimating premiums (add 5-10% to monthly budget), forgetting adjustments post-MOP, or lapsing exemptions leading to double premiums.[2][3]
- Tip 1: Declare all pre-existing conditions upfront to avoid claim denials.[2]
- Tip 2: Monitor OA via Singpass; top up if low to prevent lapses.[5]
- Tip 3: For Woodlands resale flats (~$450k avg), budget $25-30/month couple premium.[1]
- Tip 4: Pair HPS with fire insurance; Homejourney verifies compliant policies.[7]
- Pro Tip: Use our bank rates page to simulate HPS impact on total loan costs from DBS to Maybank.[1]
Original insight: In 2026's cooling market, HPS stability amid SORA fluctuations adds security—track via Homejourney tools.
Frequently Asked Questions (FAQ)
Is the Home Protection Scheme compulsory?
Yes, if using CPF for HDB loan repayments. Exemptions require approved alternatives.[1][2][5]
What is CPF HPS deduction from my account?
Monthly premiums from OA for mortgage insurance HDB coverage until 65 or loan end.[1][3]
Can I opt out of HPS for HDB flats?
Only with equivalent private coverage approved by CPF; otherwise, it auto-reinstates.[2][5]
Does HPS cover private properties?
No, HPS HDB is exclusive to HDB flats.[1][3][4]
How much does HPS cost for a $500,000 loan?
Around $340/year for age 30 couple; check CPF portal for personalized quote.[3]
What if I refinance my HDB loan?
Notify CPF to adjust coverage; compare rates on Homejourney bank-rates.[2]
Is medical exam required for HPS?
Health declaration standard; exam for higher-risk cases.[2]
How to claim HPS benefits?
Submit to CPF within 1 year with docs; payout direct to lender.[5]
Next Steps with Homejourney
Ready to buy HDB? Start with Homejourney property search for flats matching your budget including HPS.
Compare loans from DBS, OCBC, UOB, HSBC, and more on our bank rates page. Calculate eligibility instantly, apply via Singpass for multi-bank offers.
Homejourney prioritizes your safety—verified data, transparent tools, exceptional service. Secure your Home Protection Scheme journey today.
Disclaimer: This guide provides general information. Consult CPF Board or financial advisors for personalized advice. Rates as of 2026; subject to change.[5]
