How Much Mortgage Insurance Coverage Do You Need in Singapore | Homejourney

This is Homejourney's definitive guide to determining how much mortgage insurance coverage you need as a Singapore property buyer. Whether you're an HDB flat owner under the Home Protection Scheme (HPS) or a private property investor seeking private mortgage insurance, understanding the right mortgage protection amount protects your family and home from financial loss.

In Singapore's competitive property market, where HDB loans and bank mortgages from DBS, OCBC, and UOB dominate, mortgage insurance ensures your loved ones won't lose their home if death, total permanent disability (TPD), or terminal illness strikes. Homejourney prioritizes your safety by verifying data from official sources like CPF Board and MAS, helping you calculate the ideal insurance calculation for peace of mind. Read on for step-by-step advice, real examples, and tools to secure your future.

Why Mortgage Insurance Matters in Singapore

Mortgage insurance protects your family from losing their home if you're unable to repay your loan due to death, TPD, or terminal illness. In Singapore, HDB flat buyers using CPF Ordinary Account (OA) savings are automatically eligible for HPS, a mandatory mortgage-reducing insurance from the CPF Board.[1][3][9]

Private property owners or those not using CPF must arrange their own coverage, often required by banks like DBS or OCBC.[1][7] Without it, banks can foreclose on the property to recover the debt, leaving your family homeless. Homejourney's tools, like our bank rates page, help you compare loans from DBS, OCBC, UOB, HSBC, and more while factoring in insurance needs.

As of 2026, with SORA rates fluctuating, proper mortgage insurance coverage is crucial amid rising property prices in areas like Tengah or Punggol. For example, a $800,000 HDB loan requires coverage matching your share, preventing financial devastation.[1]

Home Protection Scheme (HPS) for HDB Owners

HPS is a CPF-administered insurance for HDB flat buyers using CPF OA to service loans. It covers the outstanding loan balance upon death, TPD, or terminal illness until age 65.[3][8][9]

Eligibility requires good health and approval; medical exams may apply.[9] Coverage is proportional to your CPF contribution share—if you pay 80% of installments, you're insured for 80% of the loan.[1] For a $500,000 loan, that's $400,000 coverage.

HPS automatically clears the insured portion of the loan, e.g., $200,000 if fully covered on a remaining $200,000 balance.[1] Premiums are deducted from CPF OA, making it seamless. See Homejourney's Home Protection Scheme HPS: Complete HDB Buyers Guide | Homejourney ">HPS guide for details.

Who Needs HPS?

HDB buyers using CPF OA for repayments.
First-time buyers or upgraders under 65.
Joint owners must cover their proportional shares.

HPS lapses at 65, so plan for private insurance if your loan extends beyond.[3]

Private Mortgage Insurance Options in Singapore

Private property owners and HDB buyers not using CPF need standalone plans from insurers like Income, Prudential, or banks such as UOB and DBS.[1][5][6]

These are decreasing term policies matching your loan balance, covering death, TPD (before 70), and terminal illness.[5] DBS's eDecreasingTerm offers $150,000–$500,000 coverage.[6] Prudential's PRUMortgage includes joint-life options and crisis waivers.[4]

Banks often bundle Mortgagee Interest Policies (MIP) for fire risks, but true mortgage protection focuses on loan repayment.[7] Income's Mortgage Term allows 1–7% interest rates and 5–35 year terms up to age 84.[5]

Popular Private Plans

Provider	Key Features	Min/Max Coverage
Income Mortgage Term[5]	Death, TPD<70, TI; reducing sum assured	$50k / Underwriting
DBS eDecreasingTerm[6]	Customizable for home loans	$150k–$500k
Prudential PRUMortgage[4]	Joint-life, crisis waivers	Loan amount
UOB Plans[1]	Flexible sum assured	Up to loan balance

Homejourney connects you to partners like DBS and OCBC via https://www.homejourney.sg/bank-rates.

How to Calculate Your Mortgage Protection Amount

The ideal mortgage protection amount equals your outstanding loan share. For HPS, it's proportional to CPF payments.[1] Private plans let you choose up to the full balance.[1][5]

Step-by-Step Insurance Calculation

Determine Loan Share: Solo buyer: 100%. Joint: e.g., 60/40 based on income/CPF.
Check Outstanding Balance: Use bank statements or Homejourney's mortgage calculator.
Match Coverage: Coverage = Share % × Balance. E.g., $600k loan, 70% share = $420k.
Factor Extras: Add for liabilities or choose supplementary benefits.[4]
Verify with Tool: Homejourney's calculator auto-computes based on Singpass data.

Example: Tan family buys $700k BTO in Woodlands for $560k loan. Husband pays 70% ($392k coverage needed).[1]

Scenario	Loan Amount	Your Share	Required Coverage
HDB Solo Buyer	$500,000	100%	$500,000
Joint HDB (70/30)	$800,000	70%	$560,000
Private Condo	$1.2M	100%	$1.2M

HDB vs Private Property: Coverage Differences

HDB owners get HPS up to age 65, covering full proportional loan via CPF.[3] Private owners must buy MIP or term plans from day one.[7]

Post-65 HDB loans need private top-up. Non-CPF HDB repayments also require private insurance.[3] Homejourney's property search matches budgets with verified listings.

HPS vs Private Insurance: Key Comparisons

HPS payouts clear the exact insured loan portion; private plans offer flexible sums.[1] HPS is inflexible for pre-existing conditions; private allows exclusions.[1]

Feature	HPS[1][3]	Private[1][5]
Coverage Amount	Proportional to CPF share	Customizable up to loan
Payout	Clears loan portion	Sum assured to nominees
Age Limit	Up to 65	Up to 84[5]
Health Flexibility	Approve/decline only	Exclusions possible
Premiums	CPF deducted, age-based	Fixed at application[1]

For deeper dives, check MRTA vs Term Insurance: Homejourney Application Benefits ">MRTA vs Term Insurance on Homejourney.

Factors Affecting Premiums and Costs

Premiums depend on age, gender, health, sum assured, and loan term. HPS premiums rise with age on re-application; private are fixed at signup.[1]

Example: 35-year-old male, $400k coverage—HPS ~$50–100/month via CPF; private ~$40–80.[1][5] Pay monthly/yearly; Income stops 2 years pre-term end.[5]

All plans under Policy Owners' Protection Scheme (SDIC).[2][3][5] Use Homejourney's bank-rates for bundled quotes.

Practical Tips and Common Mistakes to Avoid

Insider tip: Apply for private insurance early—rates lock in, unlike HPS re-applications.[1] Avoid underinsuring; match exact loan share.

Review coverage annually or on refinance via Homejourney's tools.
Joint policies save premiums for couples.[4]
Combine with term life for broader protection.
Mistake: Ignoring post-65 gaps—budget for top-up now.[3]
Use Singpass on Homejourney for instant eligibility checks.

For HDB specifics, see our HDB Loan vs Bank Loan 2026 Comparison | Homejourney ">HDB vs Bank Loan comparison.

Frequently Asked Questions on Mortgage Insurance Coverage

What is the minimum mortgage insurance coverage required in Singapore?

HPS requires coverage for your proportional CPF share (e.g., 80% if you pay 80% installments).[1] Private plans have no minimum but should match loan to avoid foreclosure risk.

How much does HPS cost for a $600,000 HDB loan?

Depends on age/health; typically $50–150/month deducted from CPF OA for full coverage up to 65.[1][9]

Do private property buyers need mortgage insurance?

Yes, banks like UOB require it or a Mortgagee Interest Policy to protect their loan interest.[1][7]

Can I get mortgage insurance with pre-existing conditions?

Private plans often allow exclusions; HPS may decline.[1]

What happens if my HPS lapses at 65?

Arrange private coverage; use Homejourney's brokers for seamless transition.[3]

Is mortgage insurance tax-deductible?

No, but CPF relief applies to housing premiums. Consult IRAS.

How to calculate mortgage insurance for joint loans?

Coverage = (Your income/CPF contribution % ) × Total loan. Use our calculator.

MRTA or term insurance—which is better?

See Homejourney's MRTA vs Term guide. Term often cheaper long-term.

Next Steps: Secure Your Mortgage Insurance with Homejourney

Start by comparing rates and calculating needs on Homejourney's bank rates page—view DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more. Use Singpass for instant eligibility and multi-bank applications.

Homejourney verifies data for trust, listens to feedback, and prioritizes your safety. Connect with our mortgage brokers, search properties via https://www.homejourney.sg/search, and maintain your home with Aircon Services ">aircon services. Your secure property journey starts here.

Disclaimer: This guide provides general information, not financial advice. Consult professionals for personalized recommendations. Data as of 2026 from official sources.[1][2][3][5]