Scheduled Maintenance: CPF digital services will not be available on 26 Mar 2023, from 12am to 8am.

Your page is loading.
One moment please.

What is the minimal mortgage rate that I need to purchase for my private Mortgage Reducing Term Assurance policy if I wish to be exempted from Home Protection Scheme?

The mortgage rate of your Mortgage Reducing Term Assurance (MRTA) policy must be higher or equivalent to the assumed mortgage rate of the housing loan, which depends on whether you are taking:

If you are taking an HDB loan under the concessionary rate, a mortgage rate of 3% is assumed.

 

If you are taking an HDB loan under the market rate, a mortgage rate of 4% is assumed.

 

These mortgage rates are assumed after taking into consideration the historical rates and other factors such as the rising interest rate environment. This is a prudent approach, to ensure that members are adequately covered for their outstanding housing loan over the entire loan tenor.

If you are taking a bank loan, a mortgage rate of 4% is assumed, after taking into consideration the historical rates and other factors such as the rising interest rate environment. This is a prudent approach, to ensure that members are adequately covered for their outstanding housing loan over the entire loan tenor.