How Much Mortgage Insurance Coverage Do You Need: Frequently Asked Questions
For Singapore homebuyers, mortgage insurance coverage typically needs to match at least 100% of your outstanding home loan, split proportionally among co-owners, to ensure your family won't lose the home in case of death, terminal illness, or total permanent disability (TPD).[1][2]
This cluster article answers the most common questions on how much insurance you need, building on our pillar guide How Much Mortgage Insurance Coverage Do You Need in Singapore | Homejourney ">How Much Mortgage Insurance Coverage Do You Need in Singapore. Homejourney prioritizes your safety by verifying key details so you can make confident decisions.
Why Mortgage Insurance Coverage Matters in Singapore
Mortgage insurance, like the Home Protection Scheme (HPS) for HDB flats or private plans from banks such as DBS, OCBC, and UOB, protects your loan repayment if tragedy strikes. Unlike fire insurance which covers the property, it clears the mortgage protection amount for your family.[1][5]
HDB owners using CPF must have HPS covering their share of the loan—e.g., if you pay 80% of installments, insure for 80%.[1][2] Private property buyers need equivalent private coverage. At Homejourney, compare options safely via our bank rates page featuring DBS, OCBC, UOB, HSBC, and more.
How to Calculate Your Mortgage Insurance Coverage Needs
Start with your outstanding loan balance. Insurance calculation requires 100% total coverage across all owners. For a S$500,000 HDB loan with equal co-ownership, each needs S$250,000 coverage.[2]
- Check loan share: Proportion of monthly payments (e.g., 60/40 split means 60% and 40% coverage).[1]
- Factor loan type: HPS for HDB/CPF; private MRTA or term plans for bank loans/private properties.[5]
- Use tools: Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator estimates your mortgage protection amount instantly.
- Adjust for changes: Refinance or repay capital? Update coverage via CPF portal with Singpass.[2]
Example: A couple buying a S$600,000 BTO flat in Punggol. Loan: S$480,000 after downpayment. Equal split: Each insures S$240,000 under HPS. Premiums paid from CPF OA, only for 90% of term.[2]
HPS vs Private Mortgage Insurance: Coverage Differences
HPS is mandatory for HDB/CPF users up to age 65, covering full loan share for death/TPD/terminal illness.[5][8] Private plans (e.g., DBS eDecreasingTerm, OCBC fixed coverage) suit private properties or post-65 needs, decreasing to match loan balance.[3][4]
| Aspect | HPS (HDB) | Private (Bank/Private Property) |
|---|---|---|
| Coverage Amount | Your loan share (min. 100% total) | Customizable, often full outstanding loan |
| Eligibility | Health check; up to 65 | Age/health-based; exclusions possible[1] |
| Premiums | CPF-paid, affordable[2] | Age/gender/health; fixed or decreasing[1][4] |
See our comparison in MRTA vs Term Insurance: Homejourney Application Benefits ">MRTA vs Term Insurance. For HPS details, check CPF Board site; private quotes via Homejourney partners.
Actionable Steps to Determine Your Coverage
Follow these steps for precise how much insurance you need:
- Log into CPF dashboard with Singpass: View "Protection against losing your home" for current HPS status.[2]
- Calculate via Homejourney: Input loan amount at https://www.homejourney.sg/bank-rates for personalized advice.
- Assess changes: Refinancing? Apply for HPS adjustment or private top-up.[2]
- Compare banks: DBS, OCBC, UOB rates and plans on our platform—apply to multiple with one click using Singpass.
- Consult experts: Connect with Homejourney Mortgage Brokers for free guidance.
Insider tip: For upgraders from 4-room to 5-room HDB (e.g., S$800,000 loan), recalculate post-sale to avoid gaps—HPS requires reapplication.[1]
Singapore-Specific Rules: MSR, TDSR, and CPF
Coverage ties to MSR (30% of income for HDB) and TDSR (55% total debt). Use CPF OA for premiums, but ensure sufficient balance.[2] Private buyers factor stamp duties/ABSD into affordability.
Homejourney verifies data for trust: Search budget-matched properties at https://www.homejourney.sg/search.
FAQ: How Much Mortgage Insurance Coverage Do You Need
Q1: Is HPS compulsory, and how much coverage?
A: Yes for HDB/CPF users—cover your payment share (e.g., 50% for equal co-owners) totaling 100% loan.[1][2] Check via Singpass on CPF site.
Q2: What if I'm over 65 or buying private property?
A: HPS ends at 65; get private plans like DBS eDecreasingTerm covering full outstanding loan.[4][5] Homejourney compares options securely.
Q3: How do premiums affect my insurance calculation?
A: Based on age, gender, health, loan term. HPS cheaper; pay 90% period from CPF. Use our calculator for estimates.[2]
Q4: Can I adjust coverage for refinancing?
A: Yes—notify CPF for HPS update or switch to bank plans. See HDB Loan vs Bank Loan 2026 Comparison | Homejourney ">HDB vs Bank Loan.
Q5: What's better: HPS or private MRTA?
A: HPS for affordability; private for flexibility/portability. Compare via Home Protection Scheme HPS: Complete HDB Buyers Guide | Homejourney ">HPS Guide and Homejourney brokers.
*Disclaimer: This is general info; consult professionals. Rates as of 2026; verify with MAS/HDB/CPF.*
Ready to secure your mortgage insurance coverage? Visit Homejourney bank rates for comparisons, calculators, and applications. Link back to our pillar for full insights—trust Homejourney for safe property journeys.
