What the HPS Got to Do With Your Home
Picture this: you own an HDB flat, a cozy slice of Singapore’s public housing. The government, ever the planner, loves to toss in a few glitter‑y schemes that sound fancy but might just become part of your life for the foreseeable future. One of those is the Home Protection Scheme (HPS).
Why It Should Be on Your Radar
In short, HPS is a safety net that pays the fine on your home loan if you, unfortunately, pass away before you can. The plan’s goal? Make sure you and your loved ones don’t end up walking home in a cold, empty house while the bank keeps collecting the dues.
How HPS Works
- Policy Kick‑off: When you sign up for an HPS, you agree to pay a small premium—think of it as a tiny insurance fee that’s a bargain for the peace of mind you get.
- When Trouble Arrives: If you or your spouse die and still owe money on your mortgage, the HPS steps in to cover the outstanding balance.
- Your Family Wins: The flat stays yours (or your family’s) because the bank figures out its repayment through the HPS funds, sparing you the heartbreak of losing that place.
Bottom Line: It’s All About Peace of Mind
In a nutshell, HPS is a little insurance that steadies the emotional storm should you ever face a family tragedy. It’s designed to keep the place you love right in your hands—no matter what happens.
What is this Home Protection Scheme (HPS)?
Why HPS Is the Real MVP of Home Buying
Imagine buying your dream HDB flat, only to lock yourself into a huge lump‑sum mortgage you’re not fully comfortable with. That’s where the Home Protection Scheme (HPS) steps in like a trusty sidekick.
What the HPS Actually Does
- It’s a mortgage‑reducing term insurance that kicks in whenever you owe money on your home loan.
- Think of it as a safety net that wicks away the balance on your loan if something serious goes wrong.
Who Gets Paid…
Whether you, your partner, or whoever’s paying the mortgage dies, gets diagnosed with a terminal illness, or registers total permanent disability, the HPS will pay out.
- Claim amount = the remaining loan balance.
- So if you’re still looking at a $100,000 balance when you’re gone, that money vanishes in a flash—no more worries for your family about losing the flat or chasing extra repayments.
Why Skip the Extra Policy?
There’s another kicker: the HPS is already part of the HDB flat purchase bundle. This means you don’t have to drag an additional private mortgage insurance policy into the mix unless you’re craving additional coverage or want a different plan. The HPS is a cheap, hassle‑free option that does what you need.
Costs That Won’t Break the Bank
Compared to pure private mortgage insurance, the HPS is incredibly affordable. You get the same peace of mind—just without the extra bill in your monthly expenses.
Bottom Line
When it comes to safeguarding your home and family, the HPS stands out as the smart, economical choice for HDB flat buyers. It’s simple, trustworthy, and offers the protection you need without the extra cost.
Who is eligible for HPS? Is it compulsory?
Your Home Protection Kit: All the Guts‑and‑Joints of HPS
Buying a cosy HDB flat? Want to keep that mortgage covered? Let’s break it down in plain English, with a splash of wit, so you can stay sharp on what’s mandatory, what’s optional, and what you might miss if you’re not careful.
Why HPS is a Must‑Have for HDB Owners Using CPF
- CPF Pay‑Ins = HPS Required: If you’re dipping CPF into your monthly loan payment, the Home Protection Scheme (HPS) is a mandatory safety net. It covers you from unforeseen hiccups that could hurt your house fund.
- HDB and No‑CPF Situations: Even if you’re putting a HDB flat on the market but not using CPF for the loan, you still opt‑in—just hit the “yes” button when it pops up.
- Exclusions to Keep in Mind: Executive condominiums (ECs) and privatised HUDC flats are off the hook for HPS. Think of it as the “do not apply” zone for those high‑end properties.
No HPS for Private Property Buyers?
Just so you don’t trip over a red flag:
- If you’re catching the private property or an EC spotlight, HPS is out of the picture.
- But hey, you can still secure private mortgage insurance—the popular stand‑in that lets you dodge those financial potholes.
Lock‑In Coverage Until 65 (or Way Before That!)
For those who joined the HPS club after March 1, 2001, here’s the good news:
- The protection stays active until you hit 65 years old or nail that loan to a T.
- Whichever comes first, you’re covered. No surprises for the rest of your life—or until that mortgage says, “Bye!”
Bottom Line in One Sentence
If you’re an HDB owner using CPF, HPS is your mandatory safety blanket. If you’re buying an HDB but aren’t using CPF, you can still opt‑in. Private buyers (and ECs, HUDCs) can’t get HPS but can copy the idea with private mortgage insurance. And if your start date is after 2001, you’re good until 65—or paid off, whichever arrives sooner.
Take a deep breath, sign up, and let HPS do the heavy lifting so you can enjoy the feel of home without the flicker of worry.
How does HPS work with multiple owners?
Home Protection Scheme: A Guide for Couples & Family Buyers
Buying a flat together? Congrats! But that means you’re not just one, you’re co‑owners. Wondering how the Home Protection Scheme (HPS) fits into that picture? Let’s break it down.
What’s the Minimum Coverage?
- The combined coverage of all owners must at least equal 100 % of the outstanding loan.
- That number can go higher if you fancy extra protection.
Equal Shares? Easy Peasy
If you and your partner split the mortgage calmly—say a $100,000 loan—each of you can be insured for half.
- Your coverage: $50,000
- Partner’s coverage: $50,000
Need a Different Split?
Life isn’t always a 50‑50 deal. If you guys are paying different amounts, you can adjust the coverage accordingly.
- Example: You’re covered for $80,000, she for $20,000.
Go All‑Out on Protection!
Feeling extra kiasu? You can insure each of you for a full 100 % of the loan. That means if one of you unfortunately passes away, the loan will be paid off in full.
- Your coverage: $100,000
- Partner’s coverage: $100,000
Heads up: this extra coverage will bump up the premiums, but it gives you peace of mind.
Ready to Make a Decision?
Think about how you split payments, how much protection you want, and what fits your budget. Whatever route you choose, the HPS is there to keep your home loan in check.
How much are my HPS premiums?
What’s the Deal With HPS Premiums?
It’s pretty simple once you breathe a bit and read through the nooks and crannies. The higher your loan, the shorter your repayment term, the more you’ll be chipping away each year.
Factors that Shape Your Premium
- Outstanding loan balance – the bigger the number, the bigger the cost.
- Repayment period – a shorter timespan equals a steeper yearly hit.
- Loan type – HDB concessionary loans usually cost a tad less than bank loans.
- Age & gender – the older you are, the higher your premium. Men tend to pay a little more than women.
Think of it as the homeowner’s insurance version of a fitness plan: the heavier the weight, the more calories you burn per session.
Why the Age Factor Makes Sense
Older folks have higher healthcare costs, so insurers build that into the numbers. If you’re in your 30s, your premiums will be noticeably lower than if you’re in your 70s.
Men vs. Women – Who Pays More?
Historically, men’s premiums are on the high side. That’s partly due to higher risk factors in the average male split.
Calculate Your Own Worth Before You Lose Your Mind
Use the trusty CPF HPS calculator to get an estimate. No more guessing or whispers of “is it too high?”
Sample Calculation – Don’t Panic
A 30‑year‑old man who wants coverage tied to a 25‑year home loan of $300,000 will pay roughly $240 a year for 22 years. That’s all the numbers you need to picture.
Good News – Shorter Premium Span
Hold on, you’re not paying the full 30‑year insur‑doom. You’ll front premiums for only 90% of the cover period. So, from a 30‑year plan, you’ll actually pay for 27 years. Yep, that’s a nice little savings trick.
Be mindful, plug in your details, use the calculator, and you’ll know exactly how much you’ll shell out each year. Keep the calculator handy, and you’ll avoid being caught flat‑footed by the premium jack‑knife.
Can I use CPF to pay HPS premiums?
How Your HPS Premium Will Be Handled
It’s simple. Every year, the system will automatically pull the premium from your CPF OA.
Priority Rules (Because Life Happens)
- First in line: Your HPS premium. We want to keep you covered, so it gets paid before your housing loan.
- Next up: The housing loan payment.
What if your OA is a little short?
If the balance isn’t enough to cover both the loan and the premium, don’t worry – the premium still goes first. Only if it dips below the HPS amount will you hear from CPF.
At that point, you have a few options:
- Ask a co‑owner to help with a payment from their own CPF OA.
- Chip in using cash, eNETs, PayNow, or AXS – whatever works for you.
Got Covid‑19 Financial Troubles?
If you’re feeling the squeeze, you can apply to defer your HPS premium. We get it – keeping coverage is vital, but a pause might be necessary.
Why Not Just Reapply?
Jumping back in after a lapse isn’t a walk in the park. Re‑application triggers medical underwriting, and there’s no guarantee you’re ready to qualify, especially if your health is a factor.
Bottom line – stay on track, don’t let coverage lapse if you can, and keep those options handy if funds run low. Your future self will thank you!
Is it possible to opt out of the Home Protection Scheme?
Need to Dodge the Home Protection Scheme?
So, you’re stuck with the Home Protection Scheme (HPS), but you’ve got a tidy little insurance plan that should cover you anyway. Good news? You can ditch the HPS if you meet a few simple conditions. Here’s the rundown, made to read like a friendly chat—no wall‑of‑text corporate jargon.
Which Insurance Types Get the Pass?
- Whole life insurance – you pay up front, you’re covered for life.
- Term life insurance – a set period, the usual reason people pick it.
- Endowment plan – a savings & death combo.
- Life riders – but you’ve got to attach them to a basic policy.
- Mortgage Reducing Term Assurance (MRTA) / Decreasing Term Rider – that sweet rider that shrinks as you pay down the loan.
What Does the Policy Need to Cover?
It must shield you in case of:
- Death.
- Terminal illness.
- Total & permanent disability.
And yes, it has to cover any unpaid balance on your mortgage – up to the full loan term or until you hit 65 years old, whichever comes first. Think of it like a safety net that stretches as long as you’re still tilting the mortgage ladder.
How to Apply for the Exemption
Ready to say “no more HPS”? Follow these steps in a few clicks:
- Log in to your CPF account.
- Navigate to My Requests > Home Protection Scheme (HPS).
- Click Apply to be Exempted from HPS.
Once you submit, the system will check that you meet all those criteria above. If everything’s green, you’re officially free from HPS.
Quick Tips
Don’t forget to double‑check that the policy’s scope matches the loan terms. And if you’re uncertain, a quick call to the insurer can save you time—and headaches.
HPS vs mortgage insurance: What’s the difference?
What’s the Deal with HPS?
HPS (Home Protection Scheme) is a type of mortgage insurance you get with your HDB flat. Think of it as a safety net that covers your loan if you’re unwilling or unable to keep up with the payments.
Why HPS Isn’t a Portable Pal
Imagine you’re selling your HDB and scooting over to a new one. Unfortunately, HPS is like a one‑time ticket—you can’t roll it into the next house. You’ll have to cancel the old plan and apply anew, which could bump up those premiums.
Age Limits—A Bumpy Ride!
HPS will shoulder your bets only until you’re 65. Private mortgage insurers often shout “no age limit” or “later maximum.” If you’re a seasoned HDB owner, that could be a lifesaver or a cause for grief.
Payment Timing: HDB vs. Your Wallet
- HPS sends the payout directly to the bank when a claim lands.
- Private insurance could send the money straight to you or your family. That’s handy if you want cash to cover sudden living expenses.
Burning the Custom‑Fit Crossfire
With private policies, you can add riders to tweak coverage: think “waiver of premiums” or “critical illness” add‑ons. HPS is a bit of a rigid beast; less room for personal customization.
Price Matters: Is HPS the Budget Friendly?
HPS is usually at the lower end of the cost spectrum compared to the fancy lenders’ insurance plans. If you qualify, it’s smart to grab it. If you feel the need, you can layer on extra coverage later.
Bottom line—HPS is budget‑friendly but somewhat inflexible, while private mortgage insurance offers broader options with higher input costs. Pick what fits your needs and your future house swap plans.
HPS vs life insurance: Which is better?
Deciding Between HPS and Life Insurance: A Quick & Friendly Guide
Why the Confusion Even Exists
Picture this: you’re buying your dream HDB flat, you’ve got a mortgage, and you’re wondering whether to keep the Home Protection Scheme (HPS) or hop over to a life‑insurance policy. Let’s cut through the jargon and chat like we’re sipping tea.
How HPS Wraps Your Home
- Linked to Your Loan – Your coverage mirrors the outstanding balance of your home loan. As you chip away at the principal, the sum assured also dips.
- Ends When the Loan’s Gone – Once your mortgage hits zero, so does the HPS protection.
Life Insurance: A Steady Partner
- No Borrow‑To‑Pay Decrease – The sum assured stays constant whether your loan balance shrinks or not.
- Potential Mismatches – If you’re not vigilant, you could end up under‑insured (the policy is too cheap) or over‑insured (the policy is more than enough) as you pay off your mortgage.
Getting the Math Right (And Why It Matters)
Both HPS and life insurance can safeguard your home’s cash flow – the money that pays your mortgage each month. But when you pick life insurance, it’s your responsibility to calculate the right sum assured, factor in future mortgage payments, and keep the policy in line with your evolving needs.
Why Going “All‑In” is a Solid Move
There’s absolutely no rule stopping you from doubling down. In fact, if you’re buying an HDB flat with dependants, having both HPS and life insurance is like having a safety net and a raincoat rolled into one.
Bottom Line
Neat! If you’re looking for a straightforward way to tie protection to your loan, HPS is handy. If you crave a more stable, long‑term safeguard that won’t wobble as you pay down the house, life insurance is the way to go. And hey, why not keep both? Your future self (and your dependants) will thank you.
What should I do with my HPS then?
Why You Should Keep Your HPS Even If It’s Not Mandatory
If the HPS (Home Protection Scheme) is a requirement for you, there’s really no wiggle room—you’ll have to ride along with it. However, even if you can sidestep the scheme, it’s wise to keep your HPS on deck. Think of it like a secret safety net that kicks in when cash gets tight.
What Happens If You Miss an Insurance Payment?
- Private life insurance can fall apart if you skip a premium due to financial hiccups.
- HPS insurance is auto-funded from your CPF account, and CPF is pretty handy if you can’t swing the payment.
So HPS is like that quiet guardian angel you never quite notice until it actually saves the day.
Money‑Saving Perks with Life Insurance
If you already own or are planning to snag a life insurance policy, HPS can help you trim the cost. Here’s how:
- With HPS covering your mortgage payments, you can choose a lower sum assured on your life policy.
- Lower assured amount = lower premium payments.
Don’t Forget to Revisit Your Coverage Periodically
Life changes: your loan terms might shift, you could pay off part of your mortgage, or your share in the repayments might change. Whenever you hit any of these milestones, take a quick look at your HPS plan:
- Loan package length changes (longer or shorter).
- Partial redemption or full payoff of your home loan.
- Altered share in home repayment duties.
Adjust your HPS coverage by writing to CPF so you stay neither under‑protected nor overpaying.
Publication Note
This article was first published in MoneySmart under the MoneyHDBMortgages/Real Estate CreditInsurance section.
