Mortgage Insurance Singapore: Do You Need It & Boost Approval Odds | Homejourney

Mortgage insurance Singapore is not always mandatory but can significantly improve your home loan approval chances, especially for HDB buyers using CPF or private property owners seeking bank financing. At Homejourney, we prioritize your safety and trust by verifying key details to help you make confident decisions on mortgage insurance Singapore, MRTA, and home loan insurance. This cluster article dives into whether you need it and actionable steps to enhance approval odds, linking back to our comprehensive pillar guide on Singapore home loans.

What is Mortgage Insurance in Singapore?

Mortgage insurance, also known as home loan insurance or mortgage protection, safeguards your lender if you're unable to repay due to death, terminal illness, or total permanent disability (TPD). In Singapore, key types include the Home Protection Scheme (HPS) for HDB flats and Mortgage Reducing Term Assurance (MRTA) for both HDB and private properties.[1][2][9]

HPS is automatic for HDB owners using CPF Ordinary Account (OA) funds, covering up to age 65 or loan repayment, with premiums deducted from CPF OA. Private property owners (condos, landed) must opt for MRTA or Level Term Assurance (LTA) from insurers like those partnered with DBS, OCBC, or UOB.[2][5]

Unlike fire insurance (mandatory for HDB), mortgage insurance isn't legally required but banks often request it to mitigate risk, boosting your approval profile.[1]

Do You Need Mortgage Insurance Singapore?

It depends on your property type and financing. HDB CPF users need HPS unless exempted with equivalent private coverage meeting CPF criteria (full loan cover until 65 or loan end).[3][9] Private owners aren't eligible for HPS, so MRTA protects against loan default risks.[2][4]

Pros of MRTA: Covers decreasing loan balance, joint policies available, applies to HDB/private properties.[2] Cons: Sum assured reduces over time; premiums based on entry age/health.[3]

If you're a sole breadwinner or have dependents, it's wise for family protection. Homejourney recommends assessing via our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator to see if it strengthens your case.Mortgage Insurance Singapore: Do You Need It? Homejourney Guide

How Mortgage Insurance Improves Home Loan Approval Chances

Banks like DBS, OCBC, UOB, HSBC, and Standard Chartered view mortgage insurance as a risk reducer, increasing approval likelihood under TDSR (Total Debt Servicing Ratio) limits of 55%.[1] It signals financial prudence, especially for first-time buyers or those with marginal profiles.

For HDB, HPS exemption requires private insurance matching coverage, proving you're protected.[3] Private loans often require MRTA/MIP (Mortgagee Interest Policy) for lender security.[8]

Real example: A 40-year-old buying a $600k condo might pay ~$816/month for LTA vs. higher HPS-equivalent, making applications smoother across banks.[3] Use Homejourney's multi-bank submission at https://www.homejourney.sg/bank-rates – one Singpass application reaches DBS, OCBC, UOB, and more, auto-filling data for faster processing.

MRTA vs HPS vs LTA: Quick Comparison

Type	Eligibility	Coverage	Cost
HPS	HDB + CPF OA	Decreasing to 65/loan end	Affordable, CPF-paid[2][9]
MRTA	HDB/Private	Decreasing loan balance	Lower as coverage drops[2]
LTA	HDB/Private	Fixed sum assured	Higher, constant coverage[2][3]

MRTA suits most private buyers for approval edge; apply exemptions wisely for HDB.MRTA vs Term Insurance: Best Mortgage Protection via Homejourney

Step-by-Step: How to Get Mortgage Insurance & Improve Approval

Follow these actionable steps for seamless integration with your loan application:

Check Eligibility: Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator for borrowing power and insurance needs.
Compare Options: For HDB, verify HPS; private, quote MRTA from bank partners (DBS eDecreasingTerm, OCBC fixed coverage).[6][7]
Gather Docs: NRIC, loan details, health declaration. Singpass auto-fills via Homejourney.
Apply Jointly: Co-borrowers need proportional coverage (e.g., 80% if paying 80%).[5]
Submit Multi-Bank: One Homejourney app to DBS, OCBC, UOB, HSBC, etc., includes insurance proof for higher approvals.
Track & Choose: Monitor status, compare offers side-by-side.

Pro Tip: Buy early (under 40) for lower premiums; disclose health fully to avoid rejection.[3] Avoid pitfalls like insufficient coverage leading to HPS denial.

Documentation Checklist for Approval Success

CPF statement (for HPS exemption)
Bank loan quote
Medical history (if over 50)
Proof of income/employment
Singpass for instant verification

Prepare via Homejourney for 30% faster processing – our platform verifies details securely.Mortgage Insurance Singapore: Do You Need It? Homejourney FAQs

Bank Loan Timelines & What to Expect

Expect 1-3 weeks for in-principle approval (IPA) post-insurance proof. Full approval: 4-6 weeks. Banks assess age, health, LTV (Loan-to-Value up to 75-90%), TDSR.[1]

Post-approval: Lock rates, proceed to purchase via https://www.homejourney.sg/search. Refinancers, check SORA trends – Homejourney tracks live rates.

FAQ: Mortgage Insurance Singapore

Q: Is mortgage insurance compulsory for private properties?
A: No, but banks like UOB may require it for approval. MRTA strengthens your application.[5][2]

Q: Can I skip HPS?
A: Yes, with equivalent private cover until 65/loan end. Apply exemption via CPF.[9][3]

Q: Does MRTA help loan approval?
A: Yes, it reduces lender risk, improving odds at DBS, OCBC, etc.[1]

Q: How much does MRTA cost?
A: Varies by age/loan; e.g., $600k loan for 40yo male ~cheaper than LTA at $816/mth equivalent.[3]

Q: Best way to apply with insurance?
A: Use Homejourney's multi-bank tool for one-stop submission with Singpass.

Boost your mortgage insurance Singapore journey with Homejourney – compare rates, calculate eligibility, and apply securely today at https://www.homejourney.sg/bank-rates. For full home loan guidance, see our pillar: Mortgage Insurance Singapore: Do You Need It? Homejourney Guide . Your trusted partner for safe property decisions.