How Much Mortgage Insurance Coverage Do You Need: Bank Rate Comparison Guide
For Singapore property buyers, the right mortgage insurance coverage equals your outstanding home loan balance at any time, typically 100% coverage to fully protect your family from repayment burdens in case of death, terminal illness, or total permanent disability (TPD). Homejourney helps you calculate this mortgage protection amount precisely using our real-time tools, ensuring you compare bank rates from DBS, OCBC, UOB, and more for the best fit.
This cluster guide builds on our pillar content, How Much Mortgage Insurance Coverage Do You Need: Homejourney Guide, by focusing on bank-specific rates and calculations. At Homejourney, user safety comes first—we verify all data for transparent decisions in Singapore's property market.
Understanding Mortgage Insurance Coverage in Singapore
Mortgage insurance, known as Home Protection Scheme (HPS) for HDB flats using CPF or private options like Mortgage Reducing Term Assurance (MRTA) for bank loans, covers your loan balance to prevent property loss for dependents[1][2][3]. For HDB owners using CPF, HPS is mandatory unless exempted, with premiums deducted from CPF Ordinary Account based on age, loan amount, tenure, and health[1][6].
Private property or bank loan buyers opt for MRTA or Level Term Assurance (LTA), where coverage decreases with your loan balance (MRTA) or stays fixed (LTA)[1][5]. How much insurance you need is simple: match 100% of your outstanding loan, adjusted yearly as you repay. For example, a S$500,000 loan requires initial coverage of S$500,000, dropping as principal reduces[2].
Key Calculation: Mortgage Protection Amount
Use this insurance calculation: Coverage = Current outstanding loan balance x Your repayment share (e.g., 80% if joint with spouse paying 20%). HPS covers up to age 65 or loan completion, while private plans like OCBC's Group Mortgage Insurance auto-adjust premiums yearly with no medical underwriting for loans up to S$1.25M[2].
Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator instantly computes your needs based on LTV ratios—75% max for first bank loans, 80% for HDB concessionary[1].
Singapore Bank Mortgage Insurance: Rates & Comparison (2025)
Compare premiums across Homejourney partner banks for a S$500,000 loan (age 35, 25-year tenure). Rates reflect 2025 data; always verify via https://www.homejourney.sg/bank-rates for live SORA-linked updates[2].
| Bank | Product | Annual Premium (S$500K Loan) | Coverage Type | Key Features |
|---|---|---|---|---|
| DBS | ManuProtect Term (II) | ~S$300-400 | Decreasing | Supplements HPS; portable[5] |
| OCBC | Group Mortgage Insurance | S$90-180 (age 46-55 bracket scaled) | Decreasing, auto-adjust | No underwriting to S$1.25M; portable after 3 years[2] |
| UOB | Private Mortgage Insurance | ~S$250-350 | Proportion of loan | Covers TPD/death; matches instalment share[3] |
| HSBC/Standard Chartered | MRTA Plans | S$200-450 | Reducing | Competitive for expats; check via Homejourney[1] |
OCBC leads for affordability (e.g., S$18/month per S$100K for younger buyers), while DBS suits HPS supplement[2][5]. Use Homejourney to compare all—including Maybank, CIMB, RHB—letting banks compete for your business.
Step-by-Step: Calculate & Choose Your Coverage
- Determine loan amount via LTV: e.g., S$1M condo = max S$750K bank loan (75% LTV)[1].
- Assess share: 100% single, split joint (e.g., 60/40).
- Pick type: MRTA for decreasing cover (cheaper), LTA for fixed[1].
- Compare rates on Homejourney bank rates—apply via Singpass for multi-bank offers.
- Exempt HPS if cash/bank-only HDB loan; opt for private[1][6].
Insider tip: For Punggol HDB upgraders, HPS premiums rise with age—refinance via Homejourney for better private rates before 50[1].
Pros, Cons & Who Each Bank Suits
- DBS: Pros: Seamless HPS integration, strong digital app. Cons: Higher premiums for larger loans. Best for HDB first-timers[5].
- OCBC: Pros: Low rates, no underwriting. Cons: Max S$1.25M. Ideal for mid-range condos[2].
- UOB: Pros: Flexible coverage shares. Cons: Health-based pricing. Great for families[3].
- Others (HSBC, Maybank): Pros: Expat-friendly. Cons: Variable processing. Compare on Homejourney.
Homejourney verifies rates daily, prioritizing your security—track 3M/6M SORA live.
Disclaimer: Rates as of 2025; not financial advice. Consult professionals. Fire insurance is separate, mandatory for HDB but doesn't cover loans[1][4].
Why Homejourney for Safe Mortgage Decisions
Homejourney creates a trusted space: Compare rates, calculate eligibility, apply to DBS/OCBC/UOB simultaneously with Singpass. Find properties at https://www.homejourney.sg/search matching your budget. Get WhatsApp support for queries.
FAQ
How much insurance do I need for a S$800K loan? 100% of outstanding balance, e.g., S$800K initially. Use our calculator[1].
Is HPS enough or compare banks? HPS for CPF HDB; compare private via Homejourney for better rates[6].
OCBC vs DBS premiums?