Mortgage Insurance Singapore Do You Need It: Frequently Asked Questions

No, mortgage insurance is not always mandatory in Singapore, but it's compulsory for HDB owners using CPF Ordinary Account (OA) funds via the Home Protection Scheme (HPS). Private property owners should consider Mortgage Reducing Term Assurance (MRTA) or Level Term Assurance (LTA) for protection against death, terminal illness, or permanent disability that prevents loan repayments.

This cluster article dives into mortgage insurance Singapore essentials, answering key questions for first-time buyers and upgraders. It connects to our pillar guide on Mortgage Insurance Singapore: Do You Need It? Homejourney Guide ">Mortgage Insurance Singapore: Do You Need It? Homejourney Guide for comprehensive coverage. At Homejourney, we prioritize your safety by verifying data and providing transparent tools like our bank rates page to compare DBS, OCBC, UOB, and more.

What Is Mortgage Insurance in Singapore?

Home loan insurance, also called mortgage protection or housing loan insurance, pays off your outstanding loan if you die, become terminally ill, or suffer total permanent disability (TPD). It safeguards your family from losing the home due to unpaid repayments[2][5].

For HDB flats financed with CPF OA, HPS is automatic and mandatory unless exempted with equivalent private coverage. Premiums deduct annually from your CPF OA, making it affordable as coverage decreases with the loan balance[2][8]. Private properties require voluntary MRTA or LTA from insurers like those partnered with DBS or OCBC[1][4].

Homejourney tip: Use our mortgage calculator to assess affordability before deciding on coverage. This ensures TDSR and MSR compliance for stress-free approvals.

HPS vs MRTA vs LTA: Key Differences

Understand these options to decide if you need extra mortgage insurance Singapore:

HPS: CPF-run for HDB only, covers up to age 65 or loan end. Pros: Cheap, automatic. Cons: No private property coverage, one policy per borrower[2][3].
MRTA: Decreasing coverage matching loan balance, for HDB/private. Joint policies available. Example: For a S$600,000 25-year loan, premiums start low but reduce over time[2][3].
LTA: Fixed coverage, more expensive but portable to new properties. Ideal for upgraders[2][4].

Banks like UOB and DBS bundle MRTA with loans, offering perks like cashback for HDB upgraders in 2026[1]. Compare via Homejourney's bank rates page for DBS HDB Upgrade Booster or OCBC FamilyFlex.

Type	Properties	Coverage	Cost
HPS	HDB only	Decreasing to 65	Low (CPF OA)
MRTA	HDB/Private	Decreasing	Moderate
LTA	All	Fixed	Higher

Insider tip: If upgrading from HDB to condo, HPS doesn't transfer—opt for LTA early when younger for lower premiums[3].

Do You Really Need Mortgage Insurance?

Not if you're covered by HPS or have sufficient term life insurance exempting you (must cover full loan till 65 or end)[3][8]. For private owners or sole breadwinners, yes—especially with 2026 bank bundles offering discounts[1].

Risks without it: Family faces foreclosure if you can't pay. Example: S$200,000 outstanding HDB loan—HPS clears it fully if 100% covered[5]. Homejourney verifies: Always check against MSR (30% of income) and TDSR (55% debt)[official MAS].

Actionable steps:

Check CPF portal for HPS status.
Compare MRTA/LTA quotes via bank partners on Homejourney bank rates.
Apply for exemption if term policy qualifies.
Bundle with loan for perks like UOB's S$4,000 waiver[1].

Disclaimer: This is general info; consult Homejourney mortgage brokers for personalized advice. Rates fluctuate—track via our tools.

Mortgagee Interest Policy (MIP): What Homeowners Must Know

Separate from life coverage, MIP protects the bank's interest in your property against fire/perils. Mandatory for bank-financed private homes via insurers like MSIG[9]. HDB has mandatory fire insurance.

2026 trend: Banks bundle MIP with MRTA for zero-deductible claims on leaks—key for HDB families with helpers[1].

Homejourney Tools for Smart Decisions

Secure your finances safely:

Compare DBS, OCBC, UOB, HSBC rates at https://www.homejourney.sg/bank-rates.
Instant eligibility calc: https://www.homejourney.sg/bank-rates#calculator.
One-click multi-bank apps with Singpass.
Find budget-fit properties: https://www.homejourney.sg/search.

Read more: MRTA vs Term Insurance: Best Mortgage Protection via Homejourney ">MRTA vs Term Insurance.

Frequently Asked Questions

Q1: Is mortgage insurance compulsory for bank loans in Singapore?
A: Only HPS for CPF-paid HDB loans. Private owners choose MRTA voluntarily[2][4].

Q2: Can I cancel HPS and get private mortgage insurance?
A: Yes, if private policy covers full loan till 65. Apply for exemption via CPF[3][8].

Q3: What's cheaper: MRTA or LTA?
A: MRTA, as coverage decreases. LTA suits portability[2]. Example: 40yo male, S$600k loan—LTA ~S$816/mth[3].

Q4: Does mortgage insurance cover job loss?
A: No, only death/TPD/terminal illness. Pair with income protection[5].

Q5: How does it affect refinancing?
A: New policy needed; bundle via Homejourney for discounts. See MRTA vs Term Insurance: Bank Rates Guide | Homejourney ">MRTA vs Term: Bank Rates Guide.

Ready to protect your home? Start with Homejourney's bank rates page for verified rates and Singpass apps. Link back to our pillar: Mortgage Insurance Singapore: Do You Need It? Homejourney Guide ">Mortgage Insurance Singapore Guide.