How Much Mortgage Insurance Coverage Do You Need: Benefits of Applying via Homejourney

The mortgage insurance coverage you need equals your share of the outstanding home loan, typically 100% for sole owners or proportional for joint owners (e.g., 80% if you pay 80% of installments).[1][3] For HDB flats using CPF, the mandatory Home Protection Scheme (HPS) requires at least this amount, decreasing as you repay the loan.[1][2][5] Homejourney simplifies calculating your mortgage protection amount with integrated tools, ensuring safe, verified advice for Singapore buyers.

Why Mortgage Insurance Coverage Matters in Singapore

Mortgage insurance protects your family from losing the home if death, terminal illness, or total permanent disability (TPD) occurs. HDB mandates HPS for CPF Ordinary Account (OA) users to service public housing stability, covering up to age 65 or loan repayment.[1][2][5] Private properties like condos use optional Mortgage Reducing Term Assurance (MRTA) or level term insurance, matching loan balances up to S$1.25M.[1]

With 2026 LTV limits at 75% for first-time bank loans and 80% for HDB, average loans range S$500k-S$1M. Without coverage, families may sell the property to settle debts. Homejourney verifies data from CPF Board and MAS, prioritizing user trust and safety.[1][2]

How Much Insurance Coverage Do You Need? Key Factors

Your how much insurance depends on loan size, ownership share, age, and health. For a S$800k HDB loan, sole owner needs S$800k initial coverage, decreasing yearly. Joint owners prorate by CPF used—e.g., 70% share on S$500k loan = S$350k minimum.[1][3]

Loan Size: Matches LTV; 75% of S$1M condo = S$750k max.[1]
Ownership: CPF proportion sets HPS minimum.[2]
Age/Health: HPS to 65; private up to loan end, premiums rise post-40 (e.g., S$18/month for S$500k at age 40).[1][4]
TDSR/MSR: Caps affordability, sizing loans indirectly.[1]

Insider tip: For ECs in Simei post-MOP, cover 100% despite co-ownership due to tightening CPF rules. Use Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator for precise insurance calculation.[1]

Step-by-Step Insurance Calculation for Singapore Buyers

Follow these actionable steps to determine your mortgage protection amount:

Estimate Loan: Use Homejourney's simulator for SORA-based loans from DBS, OCBC, UOB at https://www.homejourney.sg/bank-rates.
Assess Share: Prorate by CPF/instalment contribution.[1][3]
Project Balance: Coverage decreases with amortization; CPF's HPS calculator shows drops.[5][9]
Add Buffer: 10-20% extra for family security, especially single-income households.[1]
Check Premiums: Age 40-55, S$500k: S$18-90/month via OCBC group plans; HPS cheaper from CPF-OA.[4]

Sample HPS needs:

Loan Amount	Your Share (%)	Min Coverage
S$300,000	100%	S$300,000
S$500,000	80%	S$400,000
S$800,000	50%	S$400,000

Homejourney's multi-bank tools make this seamless, auto-filling via Singpass.[1]

HPS vs Private Options: Singapore-Specific Guide

HPS is mandatory for HDB/Design-Build-Execute flats using CPF-OA, exemptible with equivalent private cover like whole life.[2][5] Private MRTA (e.g., UOB, OCBC) offers portability after 3 years, riders for critical illness.[1][3][4]

HPS premiums: Affordable, 90% of cover period paid from CPF. Private: Cash/monthly, higher for level term but flexible.[2][7] For refinancing, reassess via Homejourney to match SORA shifts.

Benefits of Applying Mortgage Insurance via Homejourney

Homejourney creates a safe, trusted environment by verifying insurer details and partnering with DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and more. Skip bank-by-bank hassle—submit one Singpass application to receive side-by-side offers.[1]

Instant eligibility calculator shows loan + insurance needs.
Track status, compare rates live.
Connect with Homejourney Mortgage Brokers for personalized guidance.
Link to property search at https://www.homejourney.sg/search for budget-matched homes.

Pro tip: Apply pre-loan approval to boost chances; our system flags optimal coverage. See related: .

Documentation Checklist & Pro Tips

Prepare for smooth applications:

Singpass for auto-fill (income, CPF, employment).
IC, latest payslips, CPF statements from cpf.gov.sg.
Health declaration; medical exam if over 50 or high-risk.[5]

Tips: Time applications early (health worsens post-approval risks denial); stack with term insurance post-65. Avoid pitfalls like under-coverage by using Homejourney's tools. For full pillar guide, visit How Much Mortgage Insurance Coverage Do You Need: Homejourney Guide .

FAQ: Mortgage Insurance Coverage in Singapore

Q: Is HPS mandatory for all HDB owners?
A: Yes if using CPF-OA; exempt with equivalent private cover approved by CPF Board.[2][5]

Q: How much coverage for a S$600k joint HDB loan?
A: Proportional to shares, e.g., 60/40 = S$360k/S$240k minimum, decreasing.[1][3]

Q: Can I transfer private mortgage insurance?
A: MRTA portable after 3 years to new properties; HPS requires re-application.[1][2]

Q: What's the cost for S$1M coverage at age 45?
A: ~S$90-180/month private; HPS lower via CPF. Use CPF calculator.[4][9]

Q: How does Homejourney help?
A: One-click multi-bank apps, calculators, broker support for best protection.[1]

Disclaimer: This is general advice; consult professionals for personalized needs. Rates as of 2026; verify via official sources. Start safely with Homejourney at https://www.homejourney.sg/bank-rates. For more, read our pillar: How Much Mortgage Insurance Coverage Do You Need: Homejourney Guide .