How Much Mortgage Insurance Coverage Do You Need: Benefits of Applying via Homejourney
For Singapore HDB buyers using CPF, you need mortgage insurance coverage matching your share of the loan, at least 100% total per household under HPS or private equivalents. Homejourney simplifies calculating and applying for the right mortgage insurance coverage, ensuring your family stays secure without the hassle.
Understanding Mortgage Insurance in Singapore
Mortgage insurance, like the Home Protection Scheme (HPS) or private options such as Mortgage Reducing Term Assurance (MRTA), protects your family by paying off your outstanding home loan if you die, become totally and permanently disabled (TPD), or suffer terminal illness[1][2][3]. For HDB flats financed with CPF Ordinary Account (OA), HPS is mandatory unless exempted, covering up to age 65 or loan completion[1][7]. Private property owners or those using cash/bank loans opt for bank-tied group plans from DBS, OCBC, UOB, or others[3][6].
Homejourney prioritizes your safety by verifying insurance options from trusted partners, helping you determine how much insurance matches your mortgage protection amount without guesswork. Link to our comprehensive pillar guide on How Much Mortgage Insurance Coverage Do You Need in Singapore | Homejourney for full HDB and private property details.
How Much Coverage Do You Need? Key Calculation Factors
Your required mortgage insurance coverage equals your proportion of the loan. If you pay 80% of installments via CPF, insure at least 80%; total household coverage must hit 100%[1][4]. For a S$500,000 HDB loan, full coverage clears the balance upon claim[1]. Private plans cap at S$1.25 million, decreasing with loan repayment[3].
Use this insurance calculation formula: Coverage = (Your CPF/cash contribution to loan / Total loan) × Outstanding balance. For joint owners, proportions add up—e.g., 60% + 40% = 100%[4]. HPS premiums depend on age, health, loan amount, and tenure; private MRTA adjusts automatically as loans shrink[2].
- HDB with CPF: Minimum matches CPF usage; aim 100% for full protection[1].
- Private/Condos: Cover full outstanding loan via bank group insurance[3].
- Exemptions: Cash-only repayments skip HPS; choose level term for constant coverage[2][6].
Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator runs precise insurance calculations alongside loan affordability, using live data for 2025 LTV limits (75% bank, 80% HDB)[2].
Step-by-Step: Calculating Your Mortgage Protection Amount
Follow these actionable steps to determine how much mortgage insurance coverage do you need:
- Check loan details: Review outstanding balance via HDB InfoWEB or bank portal. Example: S$400,000 HDB loan, you pay 70%[1].
- Assess contributions: Calculate your share (CPF OA + cash). Required coverage: 70% of S$400,000 = S$280,000 minimum[4].
- Use calculators: Input age, health, tenure into CPF HPS tool or Homejourney's free estimator.
- Compare options: HPS for HDB (auto CPF deduction) vs. private (portable, no underwriting up to S$1.25M)[3].
- Adjust for changes: Refinance? Coverage auto-adjusts under HPS; notify for private[4].
Pro tip: For first-time buyers in areas like Punggol or Tengah, factor rising prices—S$500k+ loans need robust coverage. Homejourney verifies data for accurate mortgage protection amount[2]. Avoid pitfalls like underinsuring; false health declarations void HPS[4].
Benefits of Applying Mortgage Insurance via Homejourney
Homejourney creates a safe, trusted space by streamlining applications across DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more. Skip bank queues—submit once via Singpass for instant auto-fill of income, CPF, and employment data.
- Multi-bank submission: One form reaches all partners; compare side-by-side offers.
- No hassle underwriting: Many plans like OCBC Group require none up to S$1.25M[3].
- Real-time tracking: Monitor SORA rates and status on our platform.
- Expert WhatsApp support: Get tailored advice for HDB upgraders or investors.
- Portable coverage: Switch properties seamlessly, unlike reapplying for HPS[1].
Visit https://www.homejourney.sg/bank-rates to start. Pair with property search at https://www.homejourney.sg/search for budgets matching your coverage. See bank rates guide: How Much Mortgage Insurance Coverage Do You Need: Bank Rate Guide | Homejourney .
Practical Tips for Singapore Buyers
Insider advice: Young couples (under 40) lock HPS early—premiums rise with age[1]. For condos in Orchard or Marina Bay, prioritize portable private plans[3]. Always exceed minimums for retirement security post-65[7].
Documentation checklist:
- Singpass for auto-fill.
- CPF statement (via myCPF).
- Loan docs from HDB/bank.
- Health declaration (no exam for most private).
Homejourney handles verification securely. Disclaimer: This is general info; consult advisors for personalized advice. Rates as of 2025 per MAS/HDB[2].
FAQ: Mortgage Insurance Coverage
How much insurance coverage is enough for a S$600,000 HDB loan?
For sole owners using CPF, 100% or S$600,000 under HPS. Joint: Proportional shares totaling 100%[1][4]. Use Homejourney calculator for precision.
Is HPS mandatory for private properties?
No, only HDB with CPF. Private buyers choose MRTA or term plans[1][2].
Can I port mortgage insurance when upgrading?
Yes for private plans after 3 years (e.g., OCBC); HPS requires reapplication[1][3].
How do premiums work?
HPS: CPF-deducted, age/loan-based. Private: Decreasing, affordable (e.g., S$18/month for S$500k at 40s)[3].
Ready to secure your mortgage insurance coverage? Calculate and apply safely via Homejourney at https://www.homejourney.sg/bank-rates. Explore more in our pillar: How Much Mortgage Insurance Coverage Do You Need: Homejourney Guide . Trust Homejourney for transparent, verified property journeys.