With over 20 years of invaluable experience in the financial services industry, I’ve had the privilege of guiding countless Singaporean families through major life milestones—none more significant than buying a home. Amid rising property prices and hefty mortgage commitments, one crucial protection tool often overlooked is mortgage insurance.

Whether you’re a young couple purchasing your first HDB flat or upgrading to a private condo, mortgage insurance plays a critical role in ensuring your loved ones can continue their lives securely, even if the unexpected happens.

Quick Takeaways:

• Mortgage insurance ensures your home loan is paid off if something happens to you.
• MRTA suits simple loan protection; Level Term Insurance offers broader benefits.
• CPF’s HPS is good for HDB buyers, but may not offer long-term flexibility.
• Private insurers provide more options for private property buyers and refinancers.
• It’s wise to compare premiums and align your coverage with your life goals.

What Is Mortgage Insurance?

Mortgage insurance is a protection plan designed to pay off your outstanding home loan in the event of death, terminal illness, or total permanent disability (TPD).

Unlike traditional life insurance—which offers broad coverage and can be used however your family sees fit—mortgage insurance is tied specifically to your housing loan. Its primary goal? To prevent your loved ones from inheriting debt.

When you take out a mortgage, you can protect yourself and your family from the financial burden that comes with an unexpected loss of income. This coverage ensures that your property remains secure, giving you peace of mind throughout the mortgage term.

Types of Mortgage Insurance in Singapore

Singapore homeowners have several options when it comes to mortgage protection:

1. Mortgage Reducing Term Assurance (MRTA)

• Coverage reduces over time as you pay off your home loan
• Designed to match your mortgage repayment schedule
• Lower premiums compared to level term insurance

2. Level Term Insurance

• Offers consistent coverage throughout the policy term
• Payout amount does not decrease
• Provides added flexibility: your family can use the payout however needed

3. Home Protection Scheme (HPS)

• Compulsory for HDB flat buyers using CPF
• Administered by CPF Board
• Covers up to 100% of the outstanding loan
• Premiums are automatically deducted from CPF OA

4. Private Mortgage Insurance Plans

• Offered by insurers like Manulife, China Life, Singlife
• Suitable for private property buyers or those wanting more flexibility than HPS

MRTA vs Level Term Insurance: Which Should You Choose?

As a general rule, MRTA is suitable for those who want simple coverage aligned with the loan, while Level Term Insurance is ideal for clients who want broader protection for their family, not just the home loan.

Is the HDB Home Protection Scheme (HPS) Enough?

The HPS is a solid basic safeguard for HDB buyers using CPF. However, if you are planning for long-term financial security, it’s not always sufficient:

• It only covers HDB flats
• Not portable to private homes
• Coverage ends when you turn 65 years old
• Doesn’t offer customisation based on your estate planning goals

For clients who plan to refinance, upgrade, or want more tailored coverage, private mortgage insurance is often the better route. If you have specific estate planning needs, the policy owners protection scheme may not provide the comprehensive coverage that your unique situation requires.

How Much Does Mortgage Insurance Cost in Singapore?

The mortgage insurance premium depends on several factors:

• Age and gender
• Mortgage loan amount and tenure
• Smoker vs non-smoker
• Health status

For example, if you are 35 years old and a non-smoker taking out a mortgage loan for $500,000 over 25 years, you would need to pay approximately:

• $35/month for a MRTA policy
• $55/month for level term insurance

It is important to note that locking in coverage early can result in significant savings over the years. Additionally, many policies include a premium waiver benefit, ensuring that your coverage continues even if you become unable to work.

Understanding Your Down Payment and Coverage Needs

When planning for your home purchase, you will need to consider both your down payment requirements and insurance coverage. The amount of your initial down payment can influence your overall mortgage loan amount, which in turn affects your insurance needs.

Most lenders require you to provide documentation to the underwriting department before finalizing your coverage. This process ensures that your policy adequately covers your financial obligations and protects your investment.

Mortgage Insurance vs Life Insurance

While both provide peace of mind, they serve different purposes:

My advice? Consider having both if your budget allows—one protects your home, the other protects your family’s future lifestyle. A mortgage insurance policy ensures that you will be able to maintain your home ownership regardless of unforeseen circumstances.

Best Mortgage Insurance Providers in Singapore (2025)

Here are three leading mortgage insurance options worth considering:

Each has strengths—what matters most is matching the plan to your needs, life stage, and financial goals. When comparing providers, we will help you evaluate which option provides the best value for your specific circumstances.

The Application Process and What You Need to Know

When applying for a mortgage insurance policy, you need to provide comprehensive information about your health, lifestyle, and financial situation. The insurer will assess your application at the time of submission to determine your premium rates.

Most policies require you to be between 18 and 65 years old at the time of application. If you have pre-existing health conditions, some insurers may still provide coverage, though terms and premiums may be adjusted accordingly.

Understanding the policy terms before signing is crucial for making an informed decision. Take time to review the coverage details, exclusions, and benefits that your chosen policy offers.

Who Should Consider Mortgage Insurance?

If you fall into any of these categories, mortgage insurance is worth serious consideration:

• Sole breadwinners with a housing loan
• Couples with joint mortgages
• Young families starting their property journey
• CPF users for HDB loans
• Anyone planning a refinance or property upgrade

Expert Tips for Choosing the Right Coverage

After working with hundreds of clients, here are my key recommendations:

• Start Early: The younger you are when you apply, the lower your premiums will be. Don’t wait until you’re older to secure coverage.
• Review Regularly: As your financial situation changes, so should your coverage. What worked for a starter home may not be appropriate for your dream property.
• Consider Your Family’s Needs: Think beyond just paying off the mortgage. Will your family need additional funds for living expenses, children’s education, or other commitments?

Read the Fine Print: Understand what events trigger payouts, what’s excluded, and whether there are waiting periods for certain conditions.

Common Misconceptions About Mortgage Insurance

Let me address some myths I frequently encounter:

• Myth 1: “My employer’s group insurance is enough.”
  Reality: Group insurance often provides limited coverage and isn’t portable if you change jobs.
• Myth 2: “I don’t need mortgage insurance because I’m young and in good health.”
  Reality: Accidents and illnesses can happen at any age. Early application also means lower premiums.
• Myth 3: “It’s too expensive”
  Reality: When compared to the potential financial devastation of losing your home, mortgage insurance is remarkably affordable.

Final Thoughts from a Financial Advisor

After two decades of working closely with clients from diverse backgrounds, I can confidently say that protecting your mortgage is protecting your family’s financial foundation.

Whether you’re just starting your home ownership journey or already halfway through your loan, it’s never too late to review your coverage. Mortgage insurance is not just a financial product—it’s a promise to your loved ones that their home will remain their home, no matter what.

Remember, when you secure a mortgage, you’re not just buying a house—you’re creating a legacy for your family. Proper insurance coverage ensures that this legacy remains protected, regardless of what life throws your way.

If you’d like a personalised assessment or to explore tailored plans, I’d be honoured to guide you through the process and help you find the coverage that best fits your needs and budget.

Need expert guidance? Let’s explore the right mortgage insurance plan tailored to your financial vision.Remember, the best time to secure protection is now.