How Much Mortgage Insurance Coverage Do You Need: Homejourney Guide

This definitive Homejourney guide reveals exactly how much mortgage insurance coverage you need to protect your Singapore home from unforeseen events like death, terminal illness, or total permanent disability (TPD). Whether buying an HDB flat or private condo, understanding your mortgage protection amount ensures your family keeps the roof over their heads while complying with CPF rules.

Homejourney prioritizes your safety by verifying all data from official sources like CPF Board and MAS, helping you make confident decisions. Use our bank rates page to calculate insurance calculation alongside loan eligibility under TDSR/MSR limits.

Executive Summary: Why Mortgage Insurance Matters in Singapore

Mortgage insurance coverage matches your share of the outstanding home loan, decreasing as you repay. For HDB owners using CPF Ordinary Account (OA), Home Protection Scheme (HPS) is mandatory, covering at least your installment proportion—e.g., 80% if you pay 80%.[1][2]

Private property buyers opt for Mortgage Reducing Term Assurance (MRTA) or level term plans, with coverage up to S$1.25M for loans averaging S$500k-S$1M in 2026.[2] Premiums start at S$18/month for S$500k coverage at age 40, paid via CPF or cash.[4]

Homejourney's tools simplify this: estimate your how much insurance needs instantly on our mortgage calculator, compare DBS, OCBC, UOB rates, and apply via Singpass for verified approvals.

Understanding Mortgage Insurance in Singapore
Home Protection Scheme (HPS) Explained
Options for Private Properties and Beyond HPS
Calculating Your Mortgage Insurance Coverage: Step-by-Step
Key Factors Influencing Coverage Amount
HDB vs Private Property: Coverage Comparison Table
Sample Premiums and Coverage Table
When to Buy More Than Minimum Coverage
Common Mistakes and How Homejourney Helps Avoid Them
Frequently Asked Questions (FAQ)
Next Steps with Homejourney

Understanding Mortgage Insurance in Singapore

Mortgage insurance protects your lender and family by paying off the outstanding loan if you die, suffer terminal illness, or TPD. In Singapore, it's administered by CPF Board for HDB or private insurers for broader needs.[1][5]

HDB flat owners using CPF OA must enroll in HPS, covering up to age 65 or loan repayment. Exemptions require equivalent private coverage.[1] Private properties have no mandate, but experts recommend it to avoid forced sales.[2]

Homejourney verifies compliance: check HPS eligibility alongside bank loans from partners like HSBC or Standard Chartered on our bank rates page.

Singapore's Regulatory Framework

MAS oversees insurers, while CPF mandates HPS for public housing stability. Total Debt Servicing Ratio (TDSR) at 55% and Mortgage Servicing Ratio (MSR) at 30% indirectly size your loan—and thus insurance.[2]

2026 LTV limits: 75% first bank loan, 80% HDB loan, ensuring coverage aligns with borrowable amounts.[2]

Home Protection Scheme (HPS) Explained

HPS is CPF's mortgage-reducing insurance for HDB (except EC/HUDC post-MOP) owners using CPF OA. Coverage decreases with loan balance, premiums from CPF OA (90% of period).[1][5][6]

Mandatory if CPF used, regardless of HDB or bank loan. Minimum coverage: your monthly installment proportion—e.g., 80% for sole payer.[3]

Eligibility: Under 65, good health; medical exam possible. Not portable—reapply on resale, risking denial if health declines.[1][5]

Insider Tip: For Tengah HDB buyers, factor 25-year max age at entry; use Homejourney's calculator to project CPF drawdown and HPS needs.

HPS Coverage Rules

Sole Owner: 100% loan amount initially.[1]
Joint Owners: Proportional to CPF contributions or installments.[3]
Exemption: Private policy matching coverage, e.g., whole life or term assuring loan payoff.[1]

Options for Private Properties and Beyond HPS

No HPS for condos/ECs/private homes. Choose MRTA (decreasing cover to lender) or Level Term Assurance (LTA, constant payout to beneficiaries).[1][2]

MRTA: Pays bank directly, non-transferable. LTA: Flexible, portable after 3 years, add riders for critical illness.[1]

OCBC Group Mortgage Insurance covers death/TPD/terminal illness for OCBC loans, ages 18-65.[4] Similar from UOB, Prudential PRUMortgage.[3][8]

For investors in Punggol ECs, stack LTA for multi-property protection. Homejourney connects you to Maybank, CIMB rates with insurance options.

Calculating Your Mortgage Insurance Coverage: Step-by-Step

Follow this insurance calculation framework for your mortgage protection amount:

Determine Loan Amount: Use Homejourney mortgage calculator for S$800k HDB at 2.5% SORA, 25 years.[2]
Assess Ownership Share: Sole: 100%; Joint 60/40: Cover your portion.[1]
Project Outstanding Balance: Decreasing term matches amortization table.
Add Buffer (Optional): 10-20% for family income protection.[2]
Verify Premiums: Input age/health on insurer tools or Homejourney simulator.

Example: S$500k loan, age 40, 100% share = S$500k initial coverage, ~S$18-90/month.[4]

Key Factors Influencing Coverage Amount

Loan Size & LTV: 75% of S$1M condo = S$750k max coverage.[2]
Age & Health: Premiums rise post-55; HPS caps at 65.[1][4]
Ownership Type: Single vs joint prorates minimum.[3]
Property Type: HDB mandates HPS; private flexible.[1]
**Loan Tenure: Longer = higher initial coverage needed.[2]

TDSR/MSR caps loan size, thus insurance. Homejourney's eligibility tool factors these automatically.

HDB vs Private Property: Coverage Comparison Table

Aspect	HDB (HPS)	Private Property
Mandatory?	Yes, if CPF OA used[1]	No, optional[2]
Coverage Type	Decreasing to loan balance[1]	MRTA decreasing or LTA level[1]
Premium Payment	CPF OA (90% period)[6]	Cash/monthly[4]
Portability	Reapply per property[1]	Transferable after 3 years[1]
Max Age	65 or loan end[5]	Varies, e.g., 65-70[4]

Sample Premiums and Coverage Table (Age Groups, S$500k Loan)

Age Group	S$300k Coverage	S$500k	S$750k	S$1M
31-45	S$12.50	S$18.08	S$90.42	S$144.67[4]
46-55	S$18.08	S$90.42	S$144.67	S$180.84[4]
56-70	S$44.08	S$220.42	S$352.67	S$440.84[4]

Rates approximate from OCBC; actual vary by health. HPS cheaper via CPF.[4][6] Customize on Homejourney.

When and Why to Buy More Than Minimum Coverage

Minimum meets HPS but not income loss. Add LTA for full family protection post-65 or non-HDB risks.[2][9]

Refinancing? Reassess as balances change. Homejourney's multi-bank submission from DBS to RHB simplifies.[2]

For upgraders from Yishun HDB to Woodlands condo, portable LTA bridges gaps. See our MRTA vs Term Insurance: Homejourney Mortgage Protection Guide for MRTA vs term details.

Common Mistakes and How Homejourney Helps Avoid Them

Underinsuring Joint Loans: Cover 100% if sole breadwinner.[2]
Ignoring Age Premium Jumps: Buy early; post-55 costs soar.[4]
Forgetting Portability: HPS reapplication risks denial.[1]
No Buffer for CPF Shortfall: TDSR limits exposed without extra cover.

Homejourney's verified calculators and Singpass integration prevent errors, connecting you to brokers for personalized advice. Explore properties in budget via property search.