# Home Protection Scheme (HPS)

- Topic: CPF & housing
- Last updated: 6 Nov 2026
- Fact-checked against official government sources: 6 Nov 2026
- Canonical URL: https://propertymeter.sg/glossary/hps/

## What is HPS (Home Protection Scheme)?

The Home Protection Scheme (HPS) is a mortgage-reducing insurance run by CPF Board that pays off the outstanding housing loan on an HDB flat if an insured owner dies, becomes terminally ill or suffers total permanent disability. It is compulsory for HDB owners who pay their monthly instalments with CPF savings, and covers owners up to age 65.

## Key facts

- **What it covers:** Death, terminal illness and total permanent disability
- **Pays:** The outstanding housing loan, up to the insured sum, directly to HDB or the bank
- **Compulsory for:** HDB flat owners paying monthly instalments with CPF savings
- **Cover lasts:** Until age 65, or until the housing loan is paid up
- **Premiums:** Paid yearly from your CPF Ordinary Account
- **Share of cover:** The household's shares must add up to at least 100%
- **Private property:** Not covered; buy private mortgage insurance instead

## How HPS works

HPS protects families from losing their HDB flat if a breadwinner can no longer pay the loan.

1. **You are covered** when you start paying your HDB flat loan with CPF savings.
2. **Premiums are deducted** from your Ordinary Account every year.
3. **If a claim arises**, HPS settles the outstanding housing loan, up to the insured sum, directly with HDB or the bank.
4. **Cover ends** when you turn 65 or the loan is paid off, whichever comes first.

| Owner's share of cover | What HPS pays if that owner dies |
| --- | --- |
| 50% | Half the outstanding loan |
| 100% | The whole outstanding loan |

## Example

A couple owe $300,000 on their HDB flat, insured 50% each. If the husband dies, HPS pays 50% of the outstanding loan, $150,000, and his wife continues paying the other half. If each had insured 100%, HPS would pay off the whole $300,000, at a higher premium.

## Common mistakes

- **Assuming HPS covers a condo.** It covers HDB flats only.
- **Under-insuring the main breadwinner.** Shares can be uneven, as long as they add up to at least 100%.
- **Forgetting cover ends at 65.** Plan for any loan that runs beyond that age.

## Frequently asked questions

### Do I need HPS if I pay my loan in cash?

It is not compulsory, but CPF Board strongly encourages owners who pay in cash to apply.

### How should co-owners split the cover?

The total share of cover for the household must be at least 100%. Each owner can insure up to 100% of the loan, though a higher share means a higher premium.

### What if my loan runs past age 65?

HPS cover ends at 65. CPF Board suggests considering private insurance to cover the remaining loan after that.

### Can I be refused HPS cover?

Cover depends on your health, and you may need a medical examination.

## Sources

1. [Protecting against losing your home (Home Protection Scheme)](https://www.cpf.gov.sg/member/home-ownership/protecting-against-losing-your-home) (CPF Board)
2. [Do I need to be insured under the Home Protection Scheme?](https://www.cpf.gov.sg/service/article/do-i-need-to-be-insured-under-home-protection-scheme) (CPF Board)

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Source: PropertyMeter (https://propertymeter.sg/glossary/hps/). General information only, not financial, legal or tax advice.