Financing Guide
CPF Home Protection Scheme (HPS): Who Needs It, How Premiums Work and Who Can Opt Out
If you use CPF savings to pay your housing loan, you are required to be covered by the Home Protection Scheme, a mortgage-reducing insurance run by the CPF Board. It pays off your share of the loan, up to the insured sum, if you die or become terminally ill or permanently disabled. Cover depends on your health, and you can only be exempted with sufficient private insurance.
What it does
The Home Protection Scheme (HPS) insures CPF members and their families against losing their home if the policyholder is unable to pay off the loan because of death, terminal illness or total permanent disability. If a claim is approved, benefits are paid directly to the lender to settle the outstanding loan, up to the insured sum. It is mortgage-reducing insurance, so the sum insured falls as the loan is repaid.
When you need it
- You use CPF savings for monthly instalments: you must apply for HPS. Eligibility is subject to approval and your being in good health. If you are not eligible because of a serious pre-existing condition, CPF says you may still use CPF savings to pay your instalments.
- You pay in cash: CPF strongly encourages owners to take HPS if they lack adequate financial protection for their share of the loan. Cover is still subject to approval and health.
HDB's pages say the same: HPS is compulsory if you pay instalments with CPF, for both HDB and bank loans. See HDB loan vs bank loan.
How to apply
| Your situation | How you apply |
|---|---|
| New flat owner with an HDB loan | You are prompted to apply when applying to use CPF for the purchase through HDB. No separate form to CPF |
| New owner with a bank loan | Apply to CPF Board before applying to use CPF for monthly instalments |
| Existing owner with an HDB loan | Prompted when applying through HDB to use CPF for instalments; otherwise apply to CPF Board |
| Existing owner with a bank loan | Apply to CPF Board if using CPF for instalments or if you want cover |
If a previous cover lapsed recently, you may reinstate it: online if it ended 6 months ago or less, online with a reason and health declaration if between 6 and 12 months ago, and a new application with health declaration if more than a year ago. You can also see HDB's description in the resale buying steps, where a health declaration is part of the documents you endorse.
Health and eligibility
CPF assesses your medical condition. It says that members currently receiving treatment for serious medical conditions such as cancer, stroke or kidney failure are generally not eligible. If you are not eligible, CPF suggests considering cover from private insurers.
Premiums
- The premium is deducted automatically from your CPF Ordinary Account annually.
- If the OA balance is not enough, you are notified to top up within a two-month grace period. Incoming working contributions that arrive within the grace period can cover the shortfall, or a co-owning spouse, parent, child or sibling can authorise use of their own OA savings.
- Cover is issued or renewed only once the full premium is deducted.
- Older single-premium covers insure you only up to age 55 or 60. If the original loan is still outstanding, CPF extends cover to age 65 with an annual-premium cover, in most cases.
Exemption with private insurance
An exemption can be granted only if you have appropriate, in-force private policies that cover the outstanding housing loan until the end of the loan term in the event of death, terminal illness or total permanent disability, or until age 65, whichever is earlier. Acceptable types include whole life, term life, endowments, life riders attached to a basic policy and mortgage reducing term assurance or decreasing term riders. Not acceptable include assigned or pledged policies, policies with loans attached, non-life policies such as health, fire or general policies, policies priced in foreign currencies, policies from insurers not licensed by MAS and non-portable group policies. If you extend your loan, you may need to re-apply for the exemption; see changing the repayment period.
Making a claim
If a member dies, CPF Board assesses the claim automatically once ICA notifies it, and informs co-owners or next of kin. For terminal illness or total permanent disability, you submit an online application, have a Medical Assessment Report completed by an accredited doctor, submitted within 90 days, and your employer submits your employment information. Approved benefits go directly to the lender.
When you repay or sell
- HDB loan fully repaid: CPF is notified by HDB and terminates the cover automatically, refunding any unused premium to your OA. Partial repayment adjusts the cover automatically.
- Bank loan repaid with CPF: automatic termination and refund. Repaid in cash: you must write to CPF, which checks with the bank; otherwise the cover is not terminated.
For what happens to your CPF at sale, see CPF accrued interest.
FAQ
Is the Home Protection Scheme compulsory?
It is required if you use CPF savings to pay your monthly housing instalments, subject to eligibility. If you pay in cash it is strongly encouraged but not required.
Can I use CPF for my loan if I fail the HPS health check?
CPF says that if you are not eligible due to a serious pre-existing medical condition, you may still use CPF savings to pay your monthly housing instalment.
How is the HPS premium paid?
Automatically from your CPF Ordinary Account each year, with a two-month grace period if the balance is short.
Can I opt out of HPS?
Only by exemption, which requires sufficient in-force private insurance of acceptable types covering the loan.
What happens to HPS when I finish paying my loan?
For an HDB loan or a bank loan repaid with CPF, the cover ends automatically with a refund of unused premium. For a bank loan repaid in cash, you must inform CPF.
Related guides
- Home Equity Loans (MWL) in Singapore: MAS Rules
- Paying Your HDB Loan: CPF, GIRO and Age 55
- Using CPF for Housing: What OA Pays, Valuation, Age 55
Figures current as of October 2026, from CPF Board's FAQs. Premium amounts depend on your age, loan and share of cover; use CPF Board's premium calculator. This guide is general information only and is not insurance or financial advice. Decisions about exemption or replacing cover with private insurance deserve advice from a licensed adviser.
Working out your monthly housing cost including HPS and other fees? Use PropLeh's Purchase Calculator, or message us on WhatsApp.