Looking to buy an HDB flat or already repaying your home loan? You’ve probably heard about the Home Protection Scheme (HPS). But what exactly is it—and why is it important in 2025?
HPS is a mortgage-reducing insurance that protects your family’s home in case something unexpected happens. With interest rates and home prices shifting, it’s crucial to understand your options and avoid paying more than necessary.
In this guide, we’ll cover everything you need to know: what HPS is, who needs it, how much it costs, and the latest updates. Plus, we’ll share expert tips and link to helpful resources like home loan rates in Singapore to help you make the best decisions for your home.
Ready to get started? Let’s dive in.
What is the Home Protection Scheme (HPS) and Why It Matters?
Buying a home is one of the biggest investments you’ll make in Singapore, and protecting that investment is essential. That’s where the Home Protection Scheme (HPS) comes in.
This CPF Board-managed scheme ensures that your HDB flat is covered in the event of unforeseen circumstances, giving you and your family financial peace of mind.
Definition and Purpose of HPS
The Home Protection Scheme is a mortgage-reducing insurance designed for HDB homeowners in Singapore. It ensures that if you pass away, suffer from terminal illness, or become permanently disabled before paying off your home loan, your outstanding loan amount is covered.
Key Features of the Home Protection Scheme (HPS) in Singapore
| Feature | Details |
|---|---|
| Who Oversees It | CPF Board |
| What It Covers | Death, terminal illness, total permanent disability |
| Who Needs It | HDB homeowners using CPF for their loan |
| Why It's Needed | Protects family from financial burden and risk of losing the flat |
Unlike traditional life insurance, HPS is tied directly to your HDB loan and is mandatory if you’re using CPF—unless you have a private insurance policy that meets CPF’s strict requirements.
Who Needs to Enroll in HPS?
Wondering if you need to sign up? Here’s what to know:
- CPF-Paid Loans: If you’re using CPF savings to repay your HDB loan, HPS is usually mandatory.
- Joint Owners: Even if you’re sharing ownership with a spouse or family member, each co-owner generally needs coverage—so your family isn’t left with an unpaid mortgage.
- Private Insurance Alternative: You can apply to opt out of HPS if you’ve got an equivalent private insurance policy, but it must meet CPF’s guidelines and be properly documented.
Remember to always double-check your private insurance covers the full outstanding loan amount to avoid gaps in coverage.
Why is HPS Important for HDB Homeowners?
HPS isn’t just another policy—it’s a financial safety net for your family. Here’s why it matters:
- Peace of Mind: HPS ensures your family keeps their home if something happens to you.
- No Forced Sale: If tragedy strikes, CPF pays off the remaining loan—so your family isn’t forced to sell the flat.
- Essential for CPF Housing Loans: If you’re using CPF savings to pay your mortgage, HPS is typically mandatory.
Expert Insight: With home loan rates in Singapore and property prices fluctuating, HPS is more important than ever. It’s your shield against unexpected financial risks that could leave your family without a home.
For the latest CPF Home Protection Scheme updates, visit the official CPF HPS guidelines. And for the best home loan rates in Singapore, check out Ace Mortgage’s home loan rates.
How Much Does HPS Cost? Premiums, Payments, and Rebates
When planning your finances, knowing how much the Home Protection Scheme (HPS) costs is crucial for HDB homeowners in Singapore. HPS premiums vary depending on factors like your age, loan amount, and coverage period.
Understanding how these premiums are calculated—and how to pay them—can help you manage your budget effectively and avoid surprises.
How are HPS Premiums Calculated in 2025?
HPS premiums are based on several factors, including your outstanding loan amount, loan tenure, and age at the time of coverage. Here’s a quick guide to help you understand how premiums work in 2025:
Key Factors Influencing HPS Premiums in Singapore
| Factor | How It Affects Your Premium |
|---|---|
| Age | Older homeowners may pay higher premiums due to higher risk. |
| Outstanding Loan | Higher loan amounts lead to higher premiums. |
| Loan Tenure | Longer tenures typically result in lower annual premiums spread over more years. |
| Gender | Historically, CPF uses different rates for males and females. |
| Coverage Amount | The sum assured based on the outstanding loan. |
CPF reviews HPS premium rates periodically to ensure they remain fair and aligned with updated actuarial assumptions. It’s wise to check your premium annually to ensure you’re getting the best value.
Payment Methods: CPF Deduction and Other Options
Paying your HPS premium is straightforward. By default, CPF automatically deducts your annual premium from your Ordinary Account.
Here’s how you can pay:
- CPF Deduction: The most common method—premiums are automatically deducted from your CPF Ordinary Account each year.
- Cash Payment: If your CPF balance is insufficient, you’ll receive a notice from CPF. You can then top up your account or pay the premium in cash.
- Partial Payment: You can use a combination of CPF and cash if needed.
Expert Tip: Ensure your CPF Ordinary Account has sufficient funds ahead of your premium due date to avoid lapses in coverage.
For a deeper dive into managing your HPS premiums, check out Ace Mortgage’s CPF loan resources.
Rebates, Adjustments, and How to Save on HPS
Did you know that you might qualify for rebates or adjustments on your HPS premiums? Here’s what you need to know:
- Rebates: In some cases, CPF may issue rebates when premium collections exceed expected payouts.
- Adjustments: Changes to your loan amount or tenure can result in premium adjustments—so it’s important to review your policy after refinancing.
- Switching to Private Insurance: If you secure equivalent private insurance that meets CPF’s guidelines, you may apply for an exemption and potentially lower your premiums.
Expert Insight: If you’ve recently refinanced your HDB loan, don’t forget to review your HPS coverage. Refinancing can impact both your loan amount and tenure, which could change your premium.
For personalized guidance on home loan rates in Singapore, visit Ace Mortgage.
Managing Your HPS Policy Effectively
Once you’ve got your Home Protection Scheme (HPS) in place, it’s important to manage it proactively. After all, your life—and your mortgage—doesn’t stay the same forever.
Whether you’re buying your first flat, refinancing, or updating your coverage, managing your HPS ensures you and your family are always protected.
Applying for HPS: Step-by-Step Guide
If you’re new to HDB ownership or refinancing, you’ll need to apply for HPS through the CPF Board. Here’s a quick step-by-step guide to help you get started:
Step-by-Step HPS Application Process
| Step | Description |
|---|---|
| 1. | Log in to your CPF account and access the HPS section. |
| 2. | Submit your application online, providing details of your HDB loan. |
| 3. | Indicate the sum assured and choose your premium payment method. |
| 4. | CPF will review your application and confirm your premium amount. |
| 5. | Receive your HPS Certificate upon approval—coverage starts once premiums are paid. |
Before applying, double-check your loan details and consider using Ace Mortgage’s home loan calculator to plan your budget.
Updating or Changing Your Coverage
Life happens—so your HPS coverage should adapt too. Here’s when you might need to update your policy:
- Refinancing Your Loan: If you refinance, your loan amount or tenure may change, affecting your HPS premium.
- Paying Down Your Loan Early: This could reduce the amount of coverage you need and your premium.
- Adding or Removing Joint Owners: If your flat’s ownership structure changes, each owner’s HPS coverage must be updated.
Always notify CPF of any significant changes to your loan or property ownership. This ensures you’re not overpaying or under-covered. For help, check out Ace Mortgage’s refinancing guide.
Cancelling or Reinstating HPS
Sometimes, homeowners may want to cancel their HPS—perhaps because they’ve taken up an equivalent private insurance policy. Here’s what to consider:
- Cancelling HPS: You can apply for cancellation if you’ve secured an equivalent private insurance policy that meets CPF’s criteria. Ensure the private policy fully covers your outstanding loan.
- Reinstating HPS: If you let your policy lapse or previously cancelled it, you can apply to reinstate it by proving insurability and paying any outstanding premiums.
- Impact of Cancellation: Without HPS, your family could be at risk of losing the flat if you can’t make repayments due to unforeseen events.
Before cancelling HPS, speak to a mortgage specialist to confirm that your private insurance is truly equivalent.
HPS vs. Other Insurance Options: Which is Right for You?
While the Home Protection Scheme (HPS) is the default mortgage protection for HDB homeowners using CPF, it’s not the only option available.
Let’s break down how HPS compares with alternatives like Mortgage Reducing Term Assurance (MRTA), term life, and whole life insurance so you can choose the best fit for your needs.
Comparing HPS and Mortgage Reducing Term Assurance (MRTA)
Both HPS and MRTA are designed to protect your home loan, but they work differently. Here’s a side-by-side comparison:
HPS vs. MRTA: Key Differences and Similarities
| Feature | HPS | MRTA |
|---|---|---|
| Managed by | CPF Board | Private insurance companies |
| Coverage | Death, terminal illness, total permanent disability | Typically covers only death or total permanent disability |
| Mandatory? | Usually mandatory for CPF loans | Optional, can be taken separately |
| Premium Payment | Paid via CPF or cash | Paid in cash only |
| Portability | Linked to HDB loan | Tied to specific bank loan |
Expert Tip: MRTA can be more flexible in some cases, but premiums are often higher. HPS is generally cheaper and easier to manage for most HDB homeowners.
For more details, see our guide to refinancing and mortgage options on Ace Mortgage.
Can Term Life or Whole Life Insurance Replace HPS?
Many homeowners wonder if a standard term life or whole life insurance policy can take the place of HPS. The answer is: it depends.
- Term Life Insurance: Provides a payout if you pass away during the policy term. It can be structured to cover your mortgage, but you’ll need to apply for an exemption from CPF and ensure the policy amount matches your loan.
- Whole Life Insurance: Offers lifelong coverage with a cash value component. While it’s more flexible, it’s often more expensive than HPS.
- CPF Requirements: CPF requires any alternative policy to meet strict guidelines before exempting you from HPS—so don’t assume any life insurance policy will do.
Before switching, always review CPF’s criteria for private insurance alternatives to avoid coverage gaps.
Factors to Consider Before Choosing Alternative Insurance
Here are a few questions to ask yourself before deciding to stick with HPS or switch to a private insurance alternative:
- Cost: Will the new policy be more expensive than your current HPS premium?
- Coverage: Does it cover the full outstanding loan amount, including joint ownership if needed?
- Flexibility: Can you adjust the policy if you refinance or partially pay down your loan?
- Portability: Will it continue to cover you if you move, refinance, or restructure your mortgage?
Expert Tip: Switching to private insurance can work well if you want more tailored coverage—but make sure it’s equivalent to HPS in protecting your family’s home.
Need help comparing your options? Check out Ace Mortgage’s home loan advisory services for personalized guidance.
Tools and Resources to Simplify Your HPS Journey
Navigating the Home Protection Scheme (HPS) doesn’t have to be overwhelming. With the right tools and resources, you can easily manage your policy, calculate premiums, and find the information you need to keep your home protected.
Here’s a look at the essential tools every homeowner should know about.
How to Use the CPF HPS Premium Calculator
Before you apply for HPS—or if you’re planning to refinance—it’s smart to estimate your premiums. The CPF Board offers a handy online HPS Premium Calculator that helps you get a quick estimate based on your age, loan amount, and loan tenure.
Here’s how to use it effectively:
- Step 1: Visit the CPF Board’s official HPS Premium Calculator.
- Step 2: Enter your housing loan details, including loan amount and tenure.
- Step 3: Input your age and gender to get a customized premium estimate.
- Step 4: Review the results and plan your budget accordingly.
Always double-check the premium estimate against your actual CPF statement and housing loan documents to ensure accuracy.
For a deeper dive into managing your loan payments, check out Ace Mortgage’s loan repayment calculator.
Official HDB and CPF Resources for HPS
When in doubt, always refer to the official sources. Both HDB and CPF Board provide reliable, up-to-date information about HPS, eligibility, and exemptions. Here’s where to look:
- CPF Board HPS Page: Explains how HPS works, how premiums are calculated, and how to apply. Visit CPF’s official HPS page.
- HDB Website: Offers practical information for homeowners, including refinancing, loan management, and housing guides.
- Customer Service: CPF and HDB both have hotlines and online chat services to answer your HPS questions.
Expert Insight: Bookmark these pages and check for updates at least once a year—especially if you’re refinancing or changing your housing loan.
When to Seek Professional Mortgage Advice
Sometimes, online tools and resources aren’t enough. That’s when a mortgage specialist can be invaluable. Here’s why consulting a pro might be the best move:
- Complex Cases: If you’re dealing with joint ownership, refinancing, or private insurance alternatives, a mortgage advisor can help you navigate the complexities.
- Personalized Guidance: A specialist can review your unique situation, recommend the best coverage, and help you compare rates.
- Better Deals: Mortgage brokers often have access to exclusive rates and packages that you might not find on your own.
Choosing the right mortgage plan can save you thousands over the life of your loan—and ensure your HPS remains affordable and effective. To get started, speak to one of Ace Mortgage’s advisors today.
HPS 2025 Updates: What’s New This Year?
Keeping up with Home Protection Scheme (HPS) updates is essential for all HDB homeowners. Policies and premiums can change yearly, impacting how much you pay and what coverage you receive. Here’s what’s new in 2025—and how it might affect you.
Recent Policy Changes and Announcements
As of 2025, the CPF Board has rolled out a few important changes to HPS that homeowners should know:
- Updated Premium Rates: Minor adjustments were made to reflect the latest actuarial data, ensuring premiums remain fair and sustainable.
- Streamlined Application Process: CPF’s digital platform now makes it easier to apply and manage your HPS policy online.
- Enhanced Communication: CPF Board has improved email and SMS notifications for premium due dates and policy changes, so homeowners can stay informed.
Expert Tip: Always check your annual CPF statements to confirm your HPS premium and coverage amount.
How These Changes Affect HDB Homeowners
What do these updates mean for you?
- Premium Adjustments: While the changes are generally small, some homeowners may see slight increases or decreases in their premiums depending on their age and loan amount.
- Greater Transparency: Improved notifications mean you’re less likely to miss a premium payment—keeping your coverage intact.
- Easier Management: With online tools, managing your HPS has never been easier.
If you’ve recently refinanced or changed your housing loan structure, double-check your HPS coverage to ensure it aligns with your new mortgage. For guidance, visit Ace Mortgage’s home loan refinancing guide.
Future Trends: What to Expect Beyond 2025
While no major overhauls are on the horizon, here’s what experts and policymakers are watching:
- Rising Property Prices: As property values increase, ensuring adequate HPS coverage becomes even more important.
- Private Insurance Alternatives: There’s a growing interest in using private term or whole life insurance to replace HPS. However, CPF will continue to enforce strict guidelines to maintain policy integrity.
- Tech Integration: Expect even more CPF digital services and calculators to simplify HPS management.
Expert Insight: Keeping your HPS coverage updated is a smart financial move. Not only does it protect your family’s home, but it also aligns with CPF requirements—saving you from potential surprises down the road.
For the latest insights on HPS, property trends, and home loan rates in Singapore, visit Ace Mortgage today.
Frequently Asked Questions About HPS
Still have questions about the Home Protection Scheme (HPS)? You’re not alone. Here are answers to some of the most common questions HDB homeowners ask about HPS in Singapore.
Is HPS Mandatory for Every HDB Flat Owner?
In most cases, yes. If you’re using your CPF savings to pay for your HDB flat, the CPF Board usually requires you to enroll in HPS. Here’s why:
- CPF Housing Loans: HPS is mandatory unless you have private insurance that matches CPF’s coverage requirements.
- Joint Ownership: If you co-own the flat, each owner typically needs HPS coverage to protect their share of the loan.
- Exemptions: You may apply for an exemption if you have private insurance that meets CPF’s criteria.
Even if HPS isn’t strictly mandatory (for example, if you pay your loan in cash), it’s still a smart move to protect your family’s home.
Can I Use Private Insurance Instead of HPS?
Yes, but there are important things to keep in mind:
- CPF Approval: Your private policy must match or exceed the coverage provided by HPS—covering death, terminal illness, and total permanent disability for the full loan amount.
- Exemption Process: You must apply for an exemption through CPF and submit proof of your private policy’s coverage.
- Regular Review: Make sure your private insurance remains valid and matches your outstanding loan amount—otherwise, your family could be under-protected.
Expert Insight: Many homeowners think any life insurance policy will do, but CPF has strict criteria. Double-check with your insurer or a mortgage advisor before making the switch.
For a deeper dive, check out Ace Mortgage’s guide to mortgage insurance
What Happens if I Don’t Pay My HPS Premiums?
Missing your HPS premium payments can have serious consequences:
- Coverage Lapses: If you miss payments, your HPS coverage may lapse, leaving your family unprotected.
- Risk of Foreclosure: Without HPS, if you pass away, become terminally ill, or permanently disabled, your family may struggle to pay off the remaining loan—putting the flat at risk.
- CPF Notices: CPF will notify you if your account has insufficient funds, giving you a chance to top up or pay in cash.
Always ensure your CPF Ordinary Account has enough funds to cover your premium. Set reminders ahead of the due date to avoid lapses in coverage.
For help managing your premiums, use Ace Mortgage’s loan repayment calculator.
Conclusion: Secure Your HDB Home with HPS
The Home Protection Scheme (HPS) isn’t just another requirement—it’s a financial lifeline that safeguards your family’s home and peace of mind. By ensuring that your outstanding HDB loan is covered in the event of unforeseen circumstances, HPS protects your loved ones from the risk of losing their home.
As Singapore’s property market continues to evolve, staying informed about your HPS coverage and premiums is more important than ever. Whether you’re buying your first flat, refinancing, or exploring private insurance alternatives, understanding HPS can save you money and stress.
Consulting a mortgage expert can make all the difference. A specialist can help you navigate the complexities of HPS, compare your options, and ensure you have the right protection for your needs. For the best advice, resources, and tools, explore Ace Mortgage’s home loan services.
Don’t leave your family’s future to chance. Check out our latest home loan rates in Singapore, use our HPS Premium Calculator to plan your finances, and speak to an Ace Mortgage expert today.
