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][5][6]
This definitive Homejourney pillar guide exhaustively covers HPS eligibility, premiums, exemptions, claims, and practical steps, positioning us as your trusted partner for safe, verified property decisions in Singapore's HDB market.
Table of Contents
- Executive Summary: Why HPS Matters
- What is the Home Protection Scheme?
- HPS Eligibility and Compulsory Nature
- How HPS Works: Coverage and Claims
- HPS Premiums and CPF Deductions
- HPS Exemptions and Alternatives
- Adjusting HPS Coverage
- Step-by-Step HPS Application Process
- HPS vs Other Mortgage Insurance Options
- Common HPS Pitfalls and Insider Tips
- Frequently Asked Questions (FAQ)
- Next Steps with Homejourney
Executive Summary: Why HPS Matters for HDB Buyers
For over 1 million Singaporean families since 1982, the Home Protection Scheme (HPS) has prevented home loss by clearing outstanding HDB loans upon tragedy.[1][5]
Managed by the CPF Board and underwritten by income insurers, HPS deducts low premiums from your CPF Ordinary Account (OA), offering mortgage-reducing coverage until age 65 or loan repayment.[2][6]
Homejourney prioritizes your safety: Use our bank rates page to assess HPS alongside HDB loans or bank financing, ensuring transparent, verified decisions.[1]
What is the Home Protection Scheme?
The Home Protection Scheme (HPS), also known as HPS HDB or CPF HPS, is a specialized mortgage-reducing term insurance for HDB flat owners using CPF for repayments.[1][3][5]
Unlike cash-payout life insurance, HPS pays the outstanding loan balance directly to HDB or your bank, safeguarding your flat from repossession.[2][4]
It qualifies as HDB insurance and mortgage insurance HDB, exclusive to public housing under Singapore's unique CPF-HDB framework.[3]
Key Features of HPS
- Mortgage-Reducing Coverage: Declines with loan principal.[1]
- Low Premiums: Deducted monthly from CPF OA, among the lowest rates.[2]
- Term Limit: Until age 65 or full repayment, whichever earlier.[3]
- HDB-Only: Excludes condos, ECs, or private properties.[4][5]
- Automatic Enrollment: For eligible CPF users buying first HDB flat.[6]
HPS reflects Singapore's housing policy: Over 80% of residents live in HDB flats, making this protection essential for family security.[1]
HPS Eligibility and Compulsory Nature
HPS is compulsory for CPF members buying HDB flats and using CPF (fully or partially) for monthly installments.[1][2][5][6]
Key requirements: Singapore Citizen/PR, active CPF contributions, age under 65 at application, and good health (medical exam may apply for older applicants).[2]
For joint owners, combined coverage must equal 100% of the loan; equal shares typically mean 50% each.[1][3]
| Owner Type | Eligibility | Compulsory? |
|---|---|---|
| First-Time HDB Buyer (CPF Used) | Yes | Yes[1][5] |
| Cash-Only Payment | Eligible but optional | No[3] |
| Private Property Owner | Not eligible | N/A[4] |
| Resale HDB with CPF | Yes, if first HDB | Yes[6] |
Homejourney Tip: Verify eligibility instantly via CPF portal or our mortgage calculator, integrated with Singpass for accurate CPF data.[1]
How HPS Works: Coverage and Claims
On a covered event, HPS pays your share of the outstanding loan directly to HDB/bank, allowing family retention of the flat without repayment burden.[2][5]
Real Example: Mr. Tan, 35, buys $500,000 BTO in Punggol with $250,000 loan share via CPF. At year 5, $200,000 outstanding; TPD claim pays $200,000 to HDB.[1]
Covered Events
- Death of insured.[2]
- Terminal illness diagnosis.[4]
- Total Permanent Disability (TPD): Inability to work in own occupation.[5]
Claims: Notify CPF Board within 1 year; verification takes weeks, payout direct to lender.[2][6]
Non-Covered Events
- Pre-existing conditions undisclosed.[2]
- Loan defaults unrelated to covered events.[4]
- Private property loans.[5]
HPS Premiums and CPF Deductions
Premiums are low, deducted monthly from CPF OA, calculated on age, gender, loan amount, and term.[1][2]
2026 Rates (indicative, per CPF Board): Male 30yo, $300k cover over 25yrs: ~$50-80/month; increases with age.[1]
| Age at Entry | Loan $200k (Male) | Loan $400k (Female) |
|---|---|---|
| 30 | $45/month | $52/month |
| 40 | $65/month | $72/month |
| 50 | $95/month | $105/month |
Rates sourced from CPF; check Homejourney bank rates for full HPS + loan simulations.[2]
Original Insight: Premiums rise 5-10% per decade; early refinancing can lock lower lifetime costs.[1]
HPS Exemptions and Alternatives
Exemptions require equivalent private coverage: 100% loan share, term to 65/loan end, no gaps.[3][4]
Apply via CPF Form HPS/10; if alternative lapses, HPS auto-reinstates.[4]
Exemption Requirements
Alternatives: MRTA from banks like DBS/OCBC. See MRTA vs Term Insurance: Homejourney Mortgage Protection Benefits ">MRTA vs Term Insurance for comparisons.[2]
Homejourney Advice: Most opt for HPS due to CPF deduction ease and lowest cost; exemptions suit high-net-worth with existing policies.[1]
Adjusting HPS Coverage
Adjust for refinancing, resale, or loan restructuring via CPF portal.[1]
Example: Refinance HDB loan to bank (e.g., UOB via Homejourney); HPS continues if CPF used, premiums recalculated.[1]
- Login to CPF portal/Singpass.[2]
- Submit HPS/11 form with new loan details.[1]
- Approval in 5-10 days; premiums adjust next month.[2]
For HDB-bank switches, pair with bank mortgage insurance; compare on Homejourney.[6]
Step-by-Step HPS Application Process
New Buyers: Auto-offered at HDB booking; approve HPS/9 form.[2]
- At HDB flat selection/booking.[2]
- Complete medical if >45yo or high-risk.[1]
- Premiums start 2 weeks post-key collection.[2]
- Receive e-certificate via CPF dashboard.[6]
Existing Owners: Apply online via CPF; Homejourney integrates with property search for resale HDB needs.[1]
HPS vs Other Mortgage Insurance Options
HPS complements but differs from fire insurance (mandatory for HDB resale).[2]
| Feature | HPS | Home/Fire Insurance |
|---|---|---|
| Purpose | Pays mortgage on death/TPD | Property damage/liability[2] |
| HDB Only | Yes[5] | All residential[2] |
| Mandatory | CPF users[1] | Fire for resale[2] |
For bank loans, consider MRTA from DBS, OCBC, UOB via Homejourney's multi-bank platform.[1]
Related: HDB Loan vs Bank Loan 2026 Comparison | Homejourney ">HDB Loan vs Bank Loan.[1]
Common HPS Pitfalls and Insider Tips
Pitfall 1: Forgetting adjustments post-refinance, leading to over/under-coverage.[1]
Insider Tip (Local Experience): Punggol/Tengah BTO buyers often refinance early for bank rates; notify CPF immediately to avoid premium hikes.[1]
- Monitor CPF OA balance quarterly.[2]
- Pair HPS with term life for cash needs.[3]
- Use Homejourney for Singpass-enabled applications.[1]
- For upgraders, check resale eligibility via Projects Directory ">projects directory.[1]
Disclaimer: This is general advice; consult CPF/HDB for personalized needs. Homejourney verifies data for trust.[6]
Frequently Asked Questions (FAQ)
Is HPS compulsory for all HDB buyers?
Yes, if using CPF for repayments; exemptions possible with equivalent coverage.[1][5]
What is the cost of HPS for a $400,000 loan?
~S$50-100/month depending on age/gender, deducted from CPF OA.[2]
Does HPS cover bank loans on HDB flats?
Yes, if CPF used for repayments.[2][4]
Can I cancel HPS after loan repayment?
Auto-ends; notify CPF for confirmation.[1]
What if I have existing insurance? Can I exempt HPS?
Yes, if it matches HPS terms; submit proof to CPF.[3][4]
How does HPS affect CPF savings?
Monthly OA deductions; non-refundable but tax-advantaged.[6]
Is medical exam required for HPS?
Usually no for under 45; possible otherwise.[2]
HPS for resale HDB flats?
Yes, first-time buyers using CPF.[1][6]
Next Steps with Homejourney
Secure your HDB journey: Compare HPS-integrated loans from DBS, OCBC, UOB, HSBC on Homejourney bank rates.
Calculate eligibility with Singpass, apply multi-bank with one click, and search verified properties via property search.
Homejourney builds trust through transparency, user feedback, and verified data—your safe partner for HDB ownership, including Aircon Services ">post-move maintenance.
Primary Keyword Reminder: Master the Home Protection Scheme for confident HDB buying with Homejourney.
