Written Answer by Ministry of National Development on Home Protection Scheme
Jul 12, 2016
Mr Gan Thiam Poh: To ask the Minister for National Development what is the status of the review to make it compulsory for all HDB flat owners servicing their housing loans to take up the Home Protection Scheme (HPS).
Answer:
Currently, it is mandatory for HDB flat owners who use CPF monies to service their loans to take up the Home Protection Scheme (HPS) or similar mortgage insurance. 6 in 10 of all HDB flat owners with outstanding loans belong to this category.
Among the remaining 4 in 10 HDB flat owners who do not use CPF to service their loans, 43% of them have already opted for HPS voluntarily. There may also be others who have taken up mortgage insurance from the private sector.
We recognise the importance of mortgage insurance, as it ensures that surviving family members are protected in the event of death, terminal illness or total permanent disability of the flat owner before the housing loans are paid up. MND and MOM are therefore reviewing the extension of mandatory HPS or similar insurance to HDB flat owners who do not use CPF monies to service their housing loans.
As part of this review, we are studying factors such as the affordability of premiums and measures to minimise lapses in paying for the premiums, before making a decision on this matter.