HPS CPF (HDB Home Protection Scheme) Guide: Annual Premiums, Rebates, Exemptions and More (2023)
HPS CPF (HDB Home Protection Scheme) Guide: Annual Premiums, Rebates, Exemptions and More (2023)
HPS CPF (HDB Home Protection Scheme) Guide: Annual Premiums, Rebates, Exemptions and More (2023)

Those buying their HDB flat may vaguely remember the mention of the Home Protection Scheme (HPS) and its relation to the Central Provident Fund (CPF). Now, we use the term “vaguely remember” because there’s just so much paperwork and housing jargon involved when getting your own HDB flat, that the HPS CPF just becomes another so-called compulsory form to fill.

If you don’t recall as all your attention was focused on getting the keys to your new home, here’s a quick refresher. The HPS CPF scheme is a type of mortgage-reducing insurance that protects CPF members and their families from losing their HDB flat in the event of death, terminal illness or total permanent disability.​

Back in 2020, $83.8 million was paid out in claims to insured homeowners. The premiums were revised and reduced on 1 July 2021. So if you’re wondering, how the HDB HPS works, let us lend you a hand. In this article, we’ll go in-depth into what the HPS CPF scheme is, the annual premiums, rebates, exemptions and more.

What Is the Home Protection Scheme (HPS CPF)?

The HPS is a type of mortgage-reducing insurance. This means that the sum assured is proportionate to the remaining amount payable for our home loan – as you pay down your home loan, the sum assured for HPS reduces accordingly.

In the unfortunate event that a co-owner contracts a terminal illness, has a total permanent disability or dies, HPS will pay off the outstanding home loan, up to the sum assured, based on the percentage share of cover of the insured.

Like any insurance plan, there is an annual premium payable that can be paid for with your CPF funds. A health declaration is also mandatory, and some may need to undergo a medical examination.

According to the CPF website, you have to be insured under HPS if you are using your CPF savings to pay for your monthly home loan instalments on your HDB flat. However, one can apply to be exempted if they already have insurance policies that provide similar coverage.

HDB Home Protection Scheme (HPS) Eligibility

To qualify for HPS coverage, you will need to satisfy the following:

  • You are the legal owner of the flat

  • You have completed the loan application with HDB or the approved mortgagee and are now legally responsible for the loan

  • You have made your health declaration which is accepted for HPS coverage

  • You have paid the first Home Protection Scheme premium

  • You are between the ages of 21 and 65 (inclusive)

Note: You can’t use HPS for private residential properties (i.e. executive condominiums) or privatised Housing and Urban Development Company (HUDC) flats.