What is Home Protection Scheme (HPS)?
The Home Protection Scheme (HPS) is a mortgage reducing insurance which insures CPF members and their families against losing their homes should members become physically / mentally incapacitated or pass away before their housing loans are paid up.
You have to be insured under HPS if you use CPF savings to pay your monthly housing instalments under PHS. HPS will give you protection up to age 65 or the end of the loan period, whichever is earlier. In the event of permanent incapacity or death, the Board will pay up the outstanding housing loan if you are covered for the full housing loan so that your family can keep the flat. Otherwise, the Board will only pay up to the amount you are covered for.
If you have a private life or mortgage reducing insurance which is sufficient to cover your outstanding housing loan, you may apply for exemption from HPS. The above also applies if you are paying the housing instalments under PHS. HPS is optional only if you use cash to pay your monthly housing instalments.
How much must I be insured under Home Protection Scheme (HPS)?
Your share of the HPS cover should at least match the proportion of the monthly housing instalment which is payable with your CPF savings and/or cash.
If you are the only person paying the monthly housing instalments, you should be insured for 100% of the loan.
If you are paying 80% of the monthly housing instalments, and your co-owner the remaining 20%, you should be insured for 80% of the loan and your co-owner, 20%.
Monthly housing instalment = $ 1,500. You are using $1,000 from your CPF and $200 cash, while your co-owner is paying $300 from her CPF to service the loan.
Your share of the cover should be at least:
$1,200 / $1,500 x 100% = 80%
Your co-owner’s share of the cover should be at least:
$300 / $1,500 x 100% = 20%
Note: The total share of the cover per household should add up to at least 100%.
How is the HPS premium calculated?
The premium is calculated based on the following factors:
- Outstanding housing loan on the flat
- Loan repayment period
- Type of loan (concessionary or market rate)
- Sex and age of the member
Premiums are generally higher for loans of larger amounts or longer repayment periods. The premiums would be lower for younger persons and females.
You can calculate your HPS premium online using the Home Protection Scheme Premium Calculator.
What can I do if I do not want to be insured under the Home Protection Scheme (HPS)?
You can apply Exemption from Home Protection Scheme if you already have a mortgage-reducing insurance or an appropriate life insurance policy that is enough to cover your outstanding housing loan up to the full term of loan or age 65, whichever is earlier, in the event of permanent disability or death.
You may apply to be exempted online via my cpf Online Services.
You will get a full premium refund into your CPF Ordinary Account (OA) if the exemption application is received (by the Board) within one month from the issuance of the HPS cover. Otherwise, a pro-rated refund will be given to your CPF OA upon the termination of your HPS cover.
Alternatively, you can print Form HPS/2 and submit the completed form to the Board for processing.