How Much Mortgage Insurance Coverage Do You Need: Bank Rate Comparison Guide
In Singapore, the right mortgage insurance coverage typically equals your outstanding home loan amount, decreasing over time with MRTA or staying level with LTA, ensuring your family avoids loan repayment burdens in case of death, TPD, or terminal illness.[1][2]
This Homejourney cluster guide helps you calculate how much insurance you need, compares bank offerings from DBS, OCBC, UOB and more, and links to our pillar on Singapore Mortgage Essentials for full financing advice. As your trusted platform prioritizing safety and transparency, Homejourney verifies rates in real-time at our bank rates page.
Understanding Mortgage Insurance Coverage in Singapore
Mortgage insurance, or mortgage protection amount, covers your loan if you're unable to pay due to unforeseen events. For HDB owners using CPF, HPS is mandatory unless exempted with private coverage up to age 65 or loan repayment.[1][4]
Private property buyers opt for MRTA (decreasing coverage) or LTA (fixed coverage). Banks like DBS offer eDecreasingTerm, matching MRTA, while OCBC provides fixed coverage plans.[5][7] Calculate your needs: coverage should match 100% of your loan for full protection, proportional for joint owners (e.g., 80% if you pay 80% installments).[4]
How Much Insurance Coverage Do You Need? Step-by-Step Calculation
To determine your insurance calculation, start with your loan principal. For a S$600,000 25-year loan, MRTA covers the declining balance; LTA might need S$600,000 fixed.[2]
- Assess loan amount: Use Homejourney's mortgage eligibility calculator for precise figures based on TDSR.
- Choose type: HDB? HPS or exempt with MRTA/LTA. Private? MRTA/LTA from banks.[1]
- Factor age/health: Premiums rise with age; apply early. A 40-year-old male gets LTA for ~S$816/month on S$600k loan.[2]
- Joint coverage: Proportion to contributions, e.g., 50/50 for couples.[4]
- Add riders: For critical illness, available in private plans unlike HPS.[1]
Homejourney tip: Input your details at bank-rates to compare mortgage insurance coverage across banks instantly, using Singpass for quick quotes.
HPS vs MRTA vs LTA: Coverage Comparison Table
Here's a breakdown for Singapore buyers:
| Type | Coverage | Best For | Premium |
|---|---|---|---|
| HPS[1] | Decreasing to age 65, HDB only | CPF users, non-upgraders | Low, CPF-paid |
| MRTA[1][2] | Decreasing loan balance, HDB/Private | Cost-savers | Affordable |
| LTA[2] | Fixed sum, transferable | Upgraders | Higher but flexible |
Exempt HPS with private if coverage matches loan term/65 years old.[1] See Mortgage Insurance Singapore: Do You Need It? Homejourney's Complete Guide ">Mortgage Insurance Singapore Guide for more.
Bank Rate Comparison for Mortgage Insurance
Singapore banks bundle mortgage insurance with loans. Compare via Homejourney for real-time rates from partners like DBS (eDecreasingTerm[7]), OCBC (fixed plans[5]), UOB (pays outstanding loan[4]), HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.
- DBS: Flexible decreasing term, integrates with SORA loans. Pros: Digital app; Cons: Higher for older applicants.
- OCBC: Fixed coverage options, SDIC-protected.[5] Best for families.
- UOB: Clears loan on TPD/death, proportional coverage.[4]
- Others: Maybank/CIMB offer competitive MRTA for private properties.
Homejourney lets banks compete: Submit one Singpass app at bank-rates, get best offers. Compare to market: LTA ~S$800/month for S$600k.[2]
Actionable Steps to Get Coverage on Homejourney
- Visit calculator: Enter loan/age for how much insurance.
- Compare banks: See premiums side-by-side.
- Apply multi-bank: One form, multiple quotes.
- Consult brokers: Free guidance via Homejourney.
- Search properties: Match budget at property search.
Disclaimer: Rates as of 2026; consult professionals. Homejourney verifies data for your safety.
FAQ: How Much Mortgage Insurance Coverage Do You Need
1. Is mortgage insurance compulsory in Singapore?
HPS yes for CPF HDB loans; private optional but lender-recommended for all.[1][3]
2. How to calculate mortgage protection amount?
Match outstanding loan; use Homejourney calculator for precision.[2]
3. Can I replace HPS?
Yes, with MRTA/LTA covering full loan to 65.[1]
4. Which bank has cheapest mortgage insurance?
Compare on Homejourney; LTA often beats HPS long-term.[2]
5. Does it cover private properties?
Yes, via MRTA/LTA from banks like DBS/OCBC.[1][7]
Ready for secure financing? Start with Homejourney's How Much Mortgage Insurance Coverage Do You Need: Bank Rate Comparison Guide tools and link back to our pillar for complete insights. Build trust with verified rates today.
