Home Protection Scheme (HPS) Singapore: HDB Mortgage Insurance (2026)

The Home Protection Scheme is Singapore's mortgage-reducing insurance for HDB flat owners. If an insured owner dies, becomes terminally ill or suffers total permanent disability, an accepted HPS claim pays the outstanding housing loan directly to HDB or the mortgagee, up to that owner's insured share. HPS protects the mortgage; it does not insure the flat against fire, water damage, theft or renovation loss.

How HPS works

HPS is reducing-term mortgage insurance. The insured amount follows the housing-loan balance rather than remaining as a fixed family payout. When CPF approves a claim, it settles the outstanding loan with HDB or the mortgagee up to the insured sum. The benefit therefore preserves the flat by reducing or clearing the mortgage; it is not a cash windfall paid for general household expenses.

How much HPS coverage should each owner have?

CPF says each owner's HPS share should at least match that person's share of the monthly housing instalment, whether the instalment is paid with CPF, cash or both. The household's combined shares should total at least 100%. Each owner may choose a higher share, up to 100% per owner, but a higher insured share increases the annual premium.

Worked example. A couple pays a S$1,500 monthly instalment. Owner A pays S$900 from CPF and S$300 cash; Owner B pays S$300 from CPF. Owner A funds 80% of the instalment and should have at least 80% HPS cover. Owner B funds 20% and should have at least 20%. If both select 100%, the household has overlapping protection, but both premiums will reflect the higher shares.

Recheck the coverage shares after refinancing, a partial repayment, a change in ownership or a lasting change in who services the loan. A cover split that matched the household five years ago may no longer match the actual repayment responsibility.

HPS is not home or fire insurance

Use home insurance versus fire insurance for the property-damage layer. Use HPS versus term life insurance when deciding whether the household also needs a flexible cash payout beyond the mortgage.

Applying, paying and keeping HPS active

For an HDB loan, the HPS application is usually handled alongside the application to use CPF savings for monthly instalments. For a bank loan, the owner can submit CPF's HPS application. The issued HPS certificate records the sum assured, loan term and premium.

Annual premiums are generally deducted automatically from OA. Keep enough OA balance for the policy-anniversary deduction. CPF warns that cover can lapse when premiums fall behind; reapplication would then be assessed using the member's health at that later date. Owners who repay a bank loan fully with cash should also tell CPF to terminate the cover because cash repayment may not trigger automatic termination.

Claims, health declarations and exclusions

A claim may be made after death or when an accredited doctor certifies terminal illness or total permanent disability. CPF defines terminal illness as an illness likely to result in death within 12 months. Total permanent disability includes permanent inability to take part in employment or specified permanent losses of physical function. The full definition and medical evidence matter; a serious diagnosis alone does not automatically satisfy every claim condition.

Applicants must disclose past and current illnesses, treatment, tests, surgery, and physical or mental impairments fully. False or misleading information can void the cover and cause a claim to be rejected. CPF also lists exclusions involving pre-existing poor health, warlike operations and certain intentional or criminal acts. Read the official policy and claim guidance rather than relying on a summary when making or assessing a claim.

Can private insurance replace HPS?

You can apply for an HPS exemption if qualifying private life insurance is sufficient to cover the outstanding housing loan until the end of the loan term or age 65, whichever is earlier. Potentially acceptable policies include whole life, term life, endowments, attached life riders and mortgage-reducing term assurance. Home, fire, accident and health policies are not acceptable substitutes because they do not provide the required mortgage protection.

The private insurer must submit the exemption application to CPF. Apply for HPS first so use of OA for the monthly instalment is not delayed. If CPF receives and approves the exemption request within one month after HPS cover is issued, the HPS premium can be refunded fully to OA; a later approved exemption receives a prorated refund.

Decision checklist

1. Confirm whether the property is an HDB flat and whether CPF is used for monthly instalments.
2. Match each owner's HPS share to the actual repayment share and make sure combined cover is at least 100%.
3. Check the end age against the loan term; HPS ends at 65 even if the loan continues.
4. Keep enough OA for the annual premium and update cover after refinancing or repayment changes.
5. Separate the mortgage need from home damage and broader family-income needs.
6. If seeking exemption, verify the private policy amount, term and events covered before asking the insurer to apply.

Last updated: 18 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections