Mortgage Insurance Singapore Do You Need It: Bank Rate Comparison Guide
Mortgage insurance in Singapore, often called MRTA or home loan insurance, is mandatory for HDB owners using CPF but optional for private properties—yet highly recommended to protect your family from loan repayment if death or disability strikes. At Homejourney, we prioritize your safety by verifying the latest bank bundles and rates, helping you compare options transparently. This guide breaks down if you need it, compares rates from top banks like DBS, OCBC, and UOB, and shows how Homejourney's tools make decisions easier.
What is Mortgage Insurance Singapore (MRTA)?
Mortgage Reducing Term Assurance (MRTA) is a decreasing term life insurance that covers your outstanding home loan balance in case of death, Total Permanent Disability (TPD), or terminal illness. Unlike fire or contents insurance, it protects the loan itself, not the property. For HDB flats using CPF, the Home Protection Scheme (HPS) is the default MRTA equivalent, compulsory unless exempted with private coverage.
Private property buyers aren't eligible for HPS, so banks often bundle MRTA with loans for added security. Premiums are calculated based on age, health, loan amount, and tenure—typically a one-time upfront payment or monthly via CPF. Homejourney verifies these details from official CPF Board sources to ensure you get accurate info.
Do You Need Mortgage Insurance in Singapore?
Yes for HDB CPF users; optional but wise for private loans. HPS covers 100% of your loan share by default, with premiums paid from CPF Ordinary Account (OA) for 90% of the cover period—often cheaper than private MRTA. Exemptions require equivalent private coverage, but HPS offers flexibility like adjustable cover for refinancing.
For condos or private homes, MRTA isn't required, but banks like DBS and UOB push bundles with perks like cashback. In 2026, HDB upgraders face S$20,000–S$50,000 extra costs; bundled MRTA offsets this while safeguarding families. Insider tip: If you have young kids or a helper, prioritize coverage for contents and liability too—claims for electronics in HDBs rose 15% recently.
Calculate your needs using Homejourney's mortgage eligibility calculator to see if standalone life insurance beats MRTA.
HPS vs Private MRTA: Key Differences
HPS is affordable (e.g., lower premiums than private plans) and pays out the insured loan share directly—S$200,000 loan clears fully if 100% covered. Private MRTA from banks like OCBC allows exclusions for pre-existing conditions, unlike HPS's approve/decline model. Both decrease with your principal repayment.
- HPS Pros: CPF-funded, adjustable for refinancing, covers up to age 65.
- Private MRTA Pros: Flexible for private properties, bundles with rate rebates (e.g., DBS HDB Upgrade Booster: S$3,200 cashback + 3-year fire insurance).
- Cons: HPS ineligible for non-HDB; private plans costlier upfront.
Link to our pillar: For full HDB financing details, see Mortgage Insurance Singapore: Do You Need It? Homejourney Guide ">Mortgage Insurance Singapore: Do You Need It? Homejourney Guide.
2026 Bank Rate Comparison for Mortgage Insurance Singapore
Banks bundle MRTA with competitive SORA-based loans (current 3M SORA ~2.8%). Compare via Homejourney bank rates for real-time updates from DBS, OCBC, UOB, HSBC, and more. Here's a snapshot:
| Bank | MRTA Product | Est. Premium (S$500k Loan, 25yrs) | Bundle Perks |
|---|---|---|---|
| DBS/POSB | eDecreasingTerm | S$10,000–15,000 upfront | S$3,200 cashback + free fire ins. |
| OCBC | FamilyFlex MRTA | S$12,000–18,000 | 0.1% rate rebate + contents cover |
| UOB | SecureHome MRTA | S$11,000–16,000 | S$4,000 valuation waiver |
| HSBC/Standard Chartered | Custom MRTA | S$13,000–20,000 | Legal fees covered |
Rates effective early 2026; DBS leads for HDB upgraders. Maybank, CIMB, RHB offer competitive for investors—check Homejourney for full list including Citibank, Public Bank.
Actionable Steps: Compare and Apply via Homejourney
Follow these steps for the best deal:
- Assess Need: Log into CPF dashboard with Singpass to check HPS status.
- Compare Rates: Use Homejourney's bank rates page—see live SORA, bundles from 11 banks.
- Calculate: Input loan details in our calculator for MRTA costs vs benefits.
- Apply Smart: Submit one form via Singpass—banks compete with offers. Auto-fill cuts paperwork.
- Refinance Check: If rates drop below 3%, bundle new MRTA. Search budget-friendly properties on Homejourney property search.
Disclaimer: Rates fluctuate; consult Homejourney mortgage brokers for personalized advice. Not financial advice—verify with banks.
FAQ: Mortgage Insurance Singapore
Is mortgage insurance compulsory in Singapore?
HPS is mandatory for HDB CPF loans; private MRTA is optional but often bundled. Exempt HPS with equivalent private cover.
MRTA vs HPS: Which is cheaper?
HPS premiums are lower (CPF OA-funded) and cover only 90% period. Private MRTA suits private properties but costs more upfront.
Can I cancel MRTA after buying?
Yes, but check lock-in penalties. Refinance via Homejourney for better rates.
Best bank for MRTA bundles in 2026?
DBS for HDB (S$3,200 perks); UOB for valuation waivers. Compare all on Homejourney.
How does Singpass help with applications?
Auto-fills docs for faster approvals across DBS, OCBC, etc.—Homejourney makes multi-bank submission seamless.
Ready to secure your home loan safely? Visit Homejourney bank rates to compare mortgage insurance Singapore options today. For broader insights, read our Mortgage Insurance Singapore: Do You Need It? Homejourney Guide ">complete guide. Trust Homejourney for verified, transparent property journeys.
