You are viewing a pre-production site.
Scheduled Maintenance: CPF digital services will not be available on 1 Oct 2023, from 12am to 6am.
Your page is loading.
One moment please.
From 1 July 2021, more than 540,000 CPF members paying Home Protection Scheme (HPS) premiums annually will, on the average, enjoy a reduction of 10% on their premiums.
Every year, around 1,000 HDB home owners using their CPF to pay for their monthly mortgage instalments pass away or suffer terminal illness or total permanent disability. To avoid a situation where they and their families lose their homes due to inability to afford the monthly mortgage, HPS protects CPF members and their families by paying up the outstanding loan. In 2020, home owners insured under HPS made $83.8 million in claims.
CPF members who are using CPF savings to pay for the monthly housing loan instalments of their HDB flats have to be insured under HPS. Those who do not use their CPF savings to service their HDB flat housing loans can also apply to be insured under HPS.
The CPF Board conducts periodic reviews to ensure that HPS premiums remain affordable for CPF members. Due to better than expected investment returns and claims experience, the Board is reducing HPS premiums while maintaining the long-term sustainability of the Home Protection Fund. The last premium reduction was in 2018.
With the reduction in premiums, a male member aged 36 with a $200,000 housing loan from HDB for 30 years will pay a reduced annual premium of $209.40 instead of $232.40 (equivalent to a reduction of about 10%), when he joins the scheme from 1 July 2021.
Members who join the HPS scheme on or after 1 July 2021 will pay the reduced rates, while existing members will enjoy the reduced premiums when they pay their annual premium or adjust their HPS coverage on or after 1 July 2021.
Existing members will be notified of their new premium in the month that it is deducted. They can also log in to the CPF website in that month to view their new HPS premium. Potential homebuyers can estimate the HPS premiums payable using the HPS calculator on the CPF website. The calculator will be updated with the new HPS premiums from 1 July 2021.
About the Home Protection Scheme
Coverage under the Home Protection Scheme (HPS) is subject to members being in good health at the point of application and the payment of premiums. HPS premiums are determined by various factors including the outstanding loan amount, loan repayment period, type of loan (concessionary or market rate), gender and age of the member.
Members may use their CPF Ordinary Account savings to pay the annual premiums. If members do not have sufficient Ordinary Account balances to pay the premium, they can top up their CPF Ordinary Account through various electronic channels. Alternatively, family members (spouse/parent/child/sibling) who are co-owners may authorise the use of their CPF savings to pay the shortfall in the premium after the remaining balance from member’s account has been exhausted. Members are covered for the period of the housing loan or until they reach the maximum cover age of 65, whichever is earlier.
The Home Protection Fund, set up under the CPF Act, accounts for premiums received, claims paid for home mortgage insurance cover and operating expenses incurred under the HPS.