Home Protection Scheme (HPS) for HDB Buyers: Safe Ownership Guide by Homejourney

The Home Protection Scheme (HPS) is one of the most important safeguards for any HDB buyer in Singapore, yet many owners only notice it when they see a deduction from their CPF Ordinary Account (OA). For a platform like Homejourney that puts user safety and trust first, understanding HPS is foundational to making safe, long-term housing decisions.

This guide explains how HPS for HDB works, who must be covered, how premiums are calculated, when you can apply for exemption, and how to combine CPF HPS with other forms of mortgage insurance for HDB. It is written specifically for Singapore buyers using both HDB and bank loans, drawing on real examples and current CPF/HDB rules.[7][8][9]

Executive Summary: What HDB Buyers Must Know About HPS

Home Protection Scheme (HPS) is a mortgage-reducing insurance administered by CPF Board that protects HDB flat owners and their families from losing their flat if a payer dies, becomes totally and permanently disabled, or is diagnosed with a terminal illness before the loan is fully repaid.[7][8]

HPS is compulsory if you use CPF savings to pay your HDB housing instalments (HDB or bank loan) unless you qualify for and are granted an exemption.[7][9]
Coverage lasts until you pay off the loan or turn 65 years old, whichever is earlier.[2][5][7]
Premiums are usually paid once a year via automatic deduction from your CPF OA and are generally lower than many private mortgage insurance plans.[3][7]
HPS only covers HDB and DBSS flats, not private condominiums, ECs, HUDC, or landed homes.[1][7][9]
For co-owners, each owner chooses a coverage share (e.g. 50% + 50% or 100% + 100%), and the scheme pays based on that share if a claim happens.[2][4][5]

For most first-time HDB buyers in estates like Punggol, Sengkang or Bukit Panjang, HPS is the quiet financial backstop that ensures your family keeps the roof over their heads even if the worst happens.

What Is the Home Protection Scheme (HPS)?
Who Must Be Covered by HPS and When It Applies
How HPS Works: Coverage, Claims, and Co-Owners
HPS Premiums: How Much You Pay and How CPF Calculates It
HPS vs Other Mortgage Insurance for HDB Buyers
HPS Exemption: When and How You Can Opt Out
HPS, HDB Loans and Bank Loans: How Everything Fits Together
CPF, HPS and Your Property Budget: Practical Planning
Real-Life Scenarios for HDB Buyers and Upgraders
Frequently Asked Questions on HPS
How Homejourney Helps You Make Safer HDB and Loan Decisions

1. What Is the Home Protection Scheme (HPS)?

According to CPF Board, the Home Protection Scheme is a mortgage-reducing insurance that protects CPF members and their families from losing their HDB flat if they cannot continue servicing their housing loan due to death, terminal illness, or total permanent disability.[7][8]

In simpler terms: if something serious happens to you before age 65 and you still have an outstanding HDB housing loan, HPS will pay off your insured share of the loan (up to the sum assured), so your family does not have to sell or surrender the flat.[1][2][3]

Key Features of HPS at a Glance

Feature	Details (HPS HDB)
Who administers it?	CPF Board (CPF HPS)[7][8]
What does it cover?	Outstanding HDB housing loan in event of death, terminal illness, or total permanent disability[1][2][3][7]
Type of insurance	Mortgage-reducing term insurance (sum assured reduces as loan reduces)[1][2]
Properties covered	HDB flats and DBSS; excludes private condos, ECs, HUDC, landed[1][7][9]
Maximum coverage age	Until age 65 or full loan repayment, whichever is earlier[2][5][7]
Who must take it?	CPF members using CPF savings to pay HDB loan instalments (HDB or bank loan), unless exempted[7][9]
Premium payment	Annual deduction from CPF OA, usually for most of the loan tenure[3][7]

From a safety perspective, HPS is a core part of Singapore’s social safety net. It sits alongside MediShield Life and CPF LIFE, ensuring that a sudden tragedy does not immediately translate into losing your home.

Why HPS Matters for HDB Buyers

For a typical 4-room BTO in Punggol or Sembawang with a loan of around S$350,000–S$450,000, HPS ensures that if the main income earner passes away or becomes permanently disabled, the surviving family members do not suddenly face a six-figure mortgage they cannot service.

Many Singaporean families rely heavily on CPF OA to service HDB loans. Without HPS, a loss of income could spiral into mortgage arrears, HDB recovery, and the emotional stress of forced relocation. With HPS, your family can usually keep the flat, with HDB or the bank receiving the insured payout directly.[3][7]

2. Who Must Be Covered by HPS and When It Applies

HPS is not optional for many HDB buyers. CPF Board clearly states that HPS is required for CPF members who own an HDB flat and pay their monthly housing instalments using CPF savings or cash, unless they are granted exemption.[7][8][9]

2.1 When HPS Is Compulsory

You are buying or already own an HDB or DBSS flat.[1][7][9]
You are a CPF member (Singapore Citizen or PR) using CPF OA savings, or cash, to pay your monthly HDB instalments.[7][9]
Your loan is from HDB or a bank; as long as CPF is used, HPS generally applies.[7]

If you are not using CPF at all (for example, fully cash-financing a resale HDB flat with a bank loan), HPS technically is not compulsory, but you may still apply for it as an added safeguard.[5][7]

2.2 Eligibility Conditions for HPS

To qualify for HPS coverage, you must meet CPF’s eligibility criteria, which include age, flat type, loan, and health requirements.[2][7][8]

Age: Coverage is available up to age 65; you must be able to complete the coverage term by then.[2][5][7]
Flat type: HDB or DBSS flat with an outstanding housing loan.[1][7][9]
Loan status: An outstanding loan with HDB or an approved financial institution.
Health declaration: You must submit a health declaration; CPF may require a medical examination for some applicants.[2][7]

HPS approval is subject to CPF Board’s assessment of your medical condition at the time of application, and it is important to provide full and truthful disclosure. False or incomplete declarations may lead to cancellation of cover and non-payment of claims.[2][7]

2.3 When HPS Coverage Starts and Ends

Typically, HPS coverage begins when your application is approved and the first premium is deducted from your CPF OA after your legal ownership is confirmed and loan is disbursed.[3][7]

HPS cover ends when:[2][3][5][7]

You sell or transfer your HDB flat.
You fully redeem your housing loan.
You reach age 65.
Your HPS policy is terminated or replaced by a new HPS cover for another flat.
You are granted a full exemption from HPS (for example, due to alternative mortgage insurance).

For many buyers I have advised in estates like Jurong West and Tampines, the usual sequence is: BTO completion → HPS auto-enrolment → CPF deduction of first premium → HPS certificate mailed within one to two weeks.[3]

3. How HPS Works: Coverage, Claims, and Co-Owners

Understanding how HPS calculates the payout and interacts with co-owners is crucial for planning how much protection your family really has.

3.1 What Events Does HPS Cover?

HPS covers three main events:[1][2][3][7][8]

Death of the insured member.
Terminal illness (as defined by CPF Board).
Total permanent disability (TPD) that makes the member unable to work permanently.

When any of these events occur before age 65 and while the policy is in force, CPF Board will pay the insured sum (up to the outstanding loan and within the insured share) directly to HDB or the bank.

3.2 Coverage Share for Single and Joint Owners

HPS is flexible in how much coverage each owner takes. By default, the total HPS coverage for all owners should be at least 100% of the outstanding loan.[2][4]

Single owner: Usually 100% coverage.
Two or more co-owners: You may choose to split coverage, e.g. 50% + 50%, 75% + 25%, or even 100% + 100% if you want full cover for each co-owner.[2][4][5]

Example 1 – Young couple in Sengkang:

A couple buys a 4-room BTO in Sengkang with an outstanding loan of S$400,000. Each pays 50% of the monthly instalment via CPF OA.

If they set HPS coverage at 50% each, and the husband passes away with S$300,000 loan remaining, HPS pays S$150,000 (his share). The wife must continue to service the remaining S$150,000 loan.
If they set 100% each, and the same event occurs, HPS pays the full S$300,000, and the wife owns the flat with no outstanding loan.

This is why many Homejourney users with young children choose higher coverage shares, especially when one spouse has significantly higher income.

3.3 How Claims Are Paid

When a claim is approved, CPF Board pays the outstanding insured loan amount directly to HDB or the bank, not to the family as cash.[3][7][8]

If the insured share fully covers the outstanding loan, the loan is redeemed and the surviving co-owner(s) own the flat debt-free.
If the insured share only partially covers the loan, the remaining co-owner(s) continue to service the balance.

Family members typically see the flat status updated by HDB or the bank, and any future CPF OA contributions can then be used for other purposes (or remain invested), since there is no more HDB instalment for that flat.

3.4 HPS Is Not Fire Insurance or Home Contents Insurance

It is important not to confuse HPS with other types of HDB-related insurance.[5][9]

HPS: Mortgage-reducing insurance protecting against death, terminal illness, TPD; covers loan, not physical damage.[1][2][3][7]
Fire insurance: Covers damage to the flat’s structure and fixtures (usually compulsory for HDB loans).
Home contents insurance: Covers renovation and personal belongings in your flat.[9]

For a comprehensive safety net, many Homejourney users combine HPS (loan protection) with separate fire and home contents insurance.

4. HPS Premiums: How Much You Pay and How CPF Calculates It

HPS premiums are designed to be affordable and are automatically deducted from your CPF OA, so you do not have to remember to pay a separate bill.[3][7]

4.1 How HPS Premiums Are Determined

CPF calculates HPS premiums based on several factors:[1][2][3][7]

Your age at the time of application.
Your sex.
Your insured sum (loan amount and coverage share).
Your remaining loan tenure.
Your health condition (from health declaration and medical reports if needed).[2][7]

In practice, premiums for younger, healthy buyers in their 20s or early 30s are relatively low – often a few hundred dollars per year for a typical 4-room or 5-room HDB loan, and many homeowners barely notice the deduction.

4.2 How and When Premiums Are Paid

HPS premiums are usually paid via annual deduction from your CPF OA.[3][7]

The first deduction usually happens within two weeks after you become the legal owner and the loan is disbursed.[3]
You receive an HPS certificate showing your coverage share, sum assured, premium amount, and policy term.[2][3]
You can check your coverage online via CPF’s Home Ownership dashboard under “Protection against losing your home”.[3][7]

If your CPF OA balance is insufficient for premium payment, CPF will inform you of alternative payment options, which may include cash payment.[3][7]

4.3 Impact of Refinancing and Loan Changes on HPS Premiums

If you refinance your HDB loan to a bank (or from one bank to another), your outstanding loan amount and tenure usually change, which can affect your needed HPS coverage and premiums.[2][5][7]

After refinancing, CPF may require you to update your HPS cover to match the new loan details.[2]
Premiums may be adjusted based on the new loan amount, tenure, and your age at that point.
If you have alternative private mortgage insurance that meets CPF’s conditions, you may seek an HPS exemption after refinancing.[2][5][7]

This is where Homejourney becomes valuable: when planning a refinance, you can first review potential loan packages and interest savings via our bank rates page Bank Rates , then assess if your HPS or private mortgage insurance coverage still fits your new loan profile.

5. HPS vs Other Mortgage Insurance for HDB Buyers

HPS is not the only way to protect your mortgage. Many HDB buyers also consider private mortgage insurance (e.g., term life, decreasing term, or mortgage protection plans) to supplement or replace HPS in some cases.[1][2][5]

5.1 Key Differences: HPS vs Private Mortgage Insurance

Aspect	HPS (CPF HPS)	Private Mortgage Insurance
Administered by	CPF Board[7][8]	Insurance companies
Properties covered	HDB & DBSS only[1][7][9]	Can cover HDB and private properties
Premium payment	CPF OA deduction (annual)[3][7]	Cash or GIRO; sometimes CPF for some products
Coverage term	Until age 65 or loan fully paid[2][5][7]	Often flexible; may extend beyond 65 depending on policy
Sum assured	Mortgage-reducing; linked to outstanding HDB loan[1][2]	Can be level or reducing; may include extra benefits
Cash payout to family?	No; paid directly to HDB/bank for loan[3][7]	Often yes; insurer pays to beneficiaries or mortgagee depending on assignment
Exemption from HPS?	Not applicable	Can be used to qualify for HPS exemption if it meets CPF criteria[2][5][7]

For deeper analysis of non-HPS mortgage insurance options, see our related Homejourney guides:Mortgage Insurance in Singapore: Do You Need It? Homejourney Benefits Explained How Much Mortgage Insurance Coverage Do You Need: Homejourney Benefits

5.2 When HDB Buyers Rely Mainly on HPS

Many first-time buyers of 3-room or 4-room BTO flats in areas like Punggol, Yishun, or Bukit Batok rely primarily on HPS because:

It is compulsory once they use CPF OA for the loan.
Premiums are generally lower than many private plans for the same reducing coverage.[1][3]
Premiums are automatically deducted from CPF OA, not cash.

However, if you have dependants (e.g., children in primary school in Bedok or Queenstown), HPS alone may not be enough because it only covers your mortgage, not daily expenses, education or healthcare needs.

5.3 When to Consider Additional or Alternative Mortgage Insurance

You may consider additional or alternative mortgage insurance if:[1][2][5]

You want coverage beyond age 65 or beyond your HDB loan term (e.g., for future private property).
You prefer cash payouts to your family, not just a loan redemption.
You plan to upgrade from HDB to private property in 5–10 years and want a portable plan.
You want to qualify for HPS exemption because you have a custom policy covering 100% of the loan up to age 65.[2][5][7]

Homejourney’s role is to help you coordinate your mortgage and protection strategies. As you compare HDB loans and bank loans on our bank rates page Bank Rates , you can also plan whether HPS alone is enough or if you should add private mortgage insurance, using our related guides:Mortgage Insurance in Singapore: Do You Really Need It? | Homejourney How Much Mortgage Insurance Coverage Do You Need: FAQs | Homejourney

6. HPS Exemption: When and How You Can Opt Out

HPS exemption is a common question among more financially savvy HDB buyers, especially those who have substantial existing insurance coverage.

6.1 Conditions to Qualify for HPS Exemption

You can apply to be exempted from HPS if you have one or more insurance policies that already cover your outstanding housing loan up to the full loan term or until age 65, whichever is earlier.[2][5][7]

Generally acceptable policies include:[2][5][7]

Individual or group term life policies.
Endowment policies with sufficient coverage.
Decreasing term or mortgage insurance policies.

However, policies such as foreign-currency plans, health or general insurance, or policies from insurers not registered in Singapore are typically not accepted.[1][2]

Important: If at any point your alternative coverage lapses or becomes insufficient, CPF can reinstate HPS coverage, and you may have to resume paying HPS premiums.[5][7]

6.2 How to Apply for HPS Exemption

To apply for exemption, you usually must first obtain HPS cover (if you are using CPF) and become the legal owner of the flat.[1][2][7]

Log in to your CPF account.
Go to My Requests > Home Protection Scheme (HPS).
Select Apply for exemption from HPS.[2][7]
Submit details and documents for your existing insurance policies for CPF to assess.

CPF will review whether your current policies meet the criteria in terms of sum assured and coverage duration before granting an exemption. If exemption is approved, your HPS premiums will stop going forward.[2][5][7]

6.3 When Exemption May Not Be Wise

From a safety and trust perspective – which Homejourney strongly prioritises – exemption is not always the best move, even if you technically qualify.

Think very carefully before giving up HPS, especially if:[1][2][5]

Your alternative policy is tied to an investment or savings plan and you intend to surrender or reduce it later.
You and your spouse have uneven incomes and one heavily relies on the other’s CPF contributions.
You are likely to refinance or restructure your loan in the near future and may forget to update your alternative coverage.

In such cases, retaining HPS – which is tightly integrated with your CPF and HDB loan – can be a safer, more transparent choice.

7. HPS, HDB Loans and Bank Loans: How Everything Fits Together

Most HDB buyers today either take an HDB concessionary loan or a bank loan pegged to fixed or SORA-based rates. HPS interacts slightly differently with each, but the core principle remains: if CPF is used, HPS generally applies.[7][9]

7.1 HPS with HDB Loans

For HDB concessionary loans, CPF HPS is highly integrated into the process:[7][9]

You indicate whether you wish to be insured under HPS when submitting your HDB loan application.
HDB transmits the details to CPF Board, which processes your HPS application.
HPS coverage is typically in place by the time you collect keys and start servicing instalments.

For many younger couples in new towns like Tengah or Bidadari, this is a seamless process – they often do not even realise they are covered until they see the annual HPS deduction.

7.2 HPS with Bank Loans

For HDB owners taking a bank loan (from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, etc.), HPS still applies if CPF OA is used to service the instalments.[7]

Your bank issues a loan letter of offer with interest rate structure (fixed or SORA floating) and loan tenure.
You authorise CPF to use your OA for monthly instalments.
CPF Board then uses the loan details to determine your HPS sum assured and premiums.

If you refinance later – say from a 2-year fixed-rate with DBS to a 3M SORA package with OCBC – your HPS coverage may need to be updated to reflect the new outstanding loan and tenure.

Homejourney’s bank rates and mortgage comparison tools Bank Rates make this much easier by helping you see, side by side, how refinancing affects your monthly instalments – and indirectly, your HPS needs.

7.3 HPS and MAS Rules (TDSR/MSR)

While HPS itself is administered by CPF, your loan amount – and hence your HPS coverage – is constrained by MAS’s Total Debt Servicing Ratio (TDSR) and HDB’s Mortgage Servicing Ratio (MSR) for HDB loans.

MSR: Caps HDB loan monthly instalments at 30% of your gross monthly income.
TDSR: Caps total monthly debt obligations (including home, car, and personal loans) at 55% of your gross monthly income.

Because HPS coverage is based on your loan size and tenure, a tighter MSR or TDSR will also limit how large your HPS sum assured can be. Homejourney’s mortgage eligibility calculator Mortgage Rates and models these constraints so you can plan safely within official limits.

8. CPF, HPS and Your Property Budget: Practical Planning

In practice, most Singaporeans juggle three big CPF OA commitments when buying an HDB flat:

Monthly housing instalments.
HPS premiums (annual deduction).
Possible contributions to other investments or education.

8.1 Estimating HPS into Your CPF Cashflow

While CPF does not provide a simple public premium table for all scenarios, experience with clients across estates like Woodlands and Tampines suggests the following ballpark observations (not official rates):

For buyers in late 20s to early 30s with a S$300,000–S$400,000 loan over 25 years, annual HPS premiums often range in the low hundreds per year per insured owner.
Premiums increase with age, higher coverage share, longer tenure, and existing medical conditions.

When planning your budget on Homejourney’s mortgage calculator , it is prudent to set aside some buffer in your CPF OA for HPS, rather than committing every last dollar to the monthly instalment.