How Much Mortgage Insurance Coverage Do You Need: Benefits of Applying via Homejourney
In Singapore, the amount of mortgage insurance coverage you need typically equals your outstanding home loan balance, such as 100% for full protection under HPS or a proportional share for joint borrowers.[1][2]
This cluster article dives into how much insurance to get, mortgage protection amount calculations, and why applying through Homejourney ensures a safe, transparent process. It connects to our pillar guide on Singapore home financing for comprehensive coverage. Homejourney prioritizes your trust with verified tools like our bank-rates page for seamless applications.
Understanding Mortgage Insurance in Singapore
Mortgage insurance protects your family from losing their home if you pass away, become totally and permanently disabled (TPD), or face terminal illness before age 65. For HDB flats using CPF Ordinary Account (OA) savings, the Home Protection Scheme (HPS) from CPF Board is mandatory unless exempted.[1][2][5][6]
HPS covers the full outstanding loan or your proportional share—e.g., if you pay 80% of installments, insure 80% of the loan.[1] Private property owners or HDB buyers not using CPF opt for Mortgage Reducing Term Assurance (MRTA) from banks like DBS, OCBC, or UOB.[2][3]
Homejourney simplifies this: Use our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator to estimate your mortgage protection amount alongside loan options from DBS, OCBC, UOB, HSBC, and more.
How Much Mortgage Insurance Coverage Do You Need?
Your mortgage insurance coverage should match your outstanding loan at any time. For a S$500,000 HDB loan, aim for S$500,000 initially, reducing as you repay.[1][3]
Key factors for insurance calculation:
- Loan Proportion: Joint borrowers split coverage—e.g., 50/50 for equal payers.[1]
- Property Type: HPS for HDB (up to age 65); MRTA for private condos/ECs.[2][5]
- Loan Tenure: Coverage decreases over 20-30 years, premiums adjust yearly.[3]
- Age/Health: Private plans like OCBC Group Mortgage Insurance (GMI) cover up to S$1.25M without medical checks for ages 18-65.[3]
Example: Mr. and Mrs. Khoo, both 40, take a S$1M condo loan. Joint MRTA premium: ~S$18/month per S$500K coverage (ages 46-55 bracket).[3] For HDB, HPS clears S$200K loan fully if 100% covered.[1]
HPS vs MRTA: Quick Comparison
| Feature | HPS (HDB/CPF) | MRTA (Private/Bank) |
|---|---|---|
| Coverage | Outstanding loan/proportion, to age 65[1][6] | Reducing balance, portable[2][3] |
| Payout | Direct to HDB/loan[2] | To beneficiary, flexible[2] |
| Joint Option | Separate policies[2] | Single joint premium[2][3] |
| Premiums | Age-based, reapply on resale[1] | Fixed entry, auto-adjust[3] |
Exempt from HPS with equivalent like MRTA, term life, or endowment.[2][4] Check via Homejourney's tools for personalized insurance calculation.
Step-by-Step: Calculating Your Mortgage Protection Amount
Follow these actionable steps for accurate how much insurance you need:
- Check Loan Details: Get outstanding balance from bank statement or HDB portal.[1]
- Determine Proportion: Calculate your share (e.g., 60% if you pay more).[1]
- Use Calculator: Input into Homejourney's mortgage calculator at https://www.homejourney.sg/bank-rates#calculator.How Much Mortgage Insurance Coverage Do You Need: Homejourney's 2026 Guide
- Factor Age/Health: Younger buyers get lower premiums; pre-existing conditions may need exclusions.[1][3]
- Compare Quotes: Via Homejourney, submit one app to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank—compare side-by-side.
Pro Tip: For HDB upgraders in areas like Punggol or Sengkang, time insurance renewal during resale to avoid health rejections.[1] Always verify with CPF Board for HPS eligibility.[6]
Benefits of Applying via Homejourney
Homejourney creates a safe and trusted environment by verifying partners and prioritizing transparency. Skip bank queues—apply via Singpass for instant auto-fill of income, CPF, employment data.
- One application to 10+ banks: DBS, OCBC, UOB, HSBC, etc.
- Real-time tracking of offers and status.
- No medical underwriting for many MRTAs up to S$1.25M.[3]
- Portable coverage, guaranteed renewal.[3]
- Link to property search for budgets matching your protected loan.
Our multi-bank system saves time—users report 50% faster approvals. Connect with Homejourney Mortgage Brokers for tailored advice. See related: How Much Mortgage Insurance Coverage Do You Need in Singapore | Homejourney
Documentation Checklist for Mortgage Insurance
Prepare these for smooth applications:
- Singpass for auto-fill (Homejourney exclusive).
- CPF statements (last 12 months).
- Loan agreement from HDB/bank.
- ID/passport copies.
- Health declaration (if required).[6]
Insider Tip: Upload via Homejourney app—our system flags missing docs instantly, avoiding delays common in direct bank apps.
FAQ: Mortgage Insurance Coverage
1. Is mortgage insurance compulsory in Singapore?
HPS is mandatory for HDB/CPF users unless exempted by equivalent coverage like MRTA. Private properties optional but recommended.[1][2][5]
2. How much insurance do joint HDB owners need?
Proportional to installment share—e.g., 70%/30% split means 70%/30% coverage.[1]
3. Can I get mortgage insurance without medical checks?
Yes, plans like OCBC GMI up to S$1.25M for ages 18-65.[3]
4. What if I'm over 65?
HPS ends; arrange private MRTA extension.[5]
5. How does Homejourney make applying easier?
Singpass integration, multi-bank submission, real-time quotes—start at https://www.homejourney.sg/bank-rates.
Disclaimer: This is general info; consult professionals for advice. Rates as of 2026; verify with banks/CPF.
Ready to secure your mortgage insurance coverage? Visit Homejourney bank-rates for instant calculations and applications. Explore our pillar on Singapore home loans for full guidance.
