Exemption from Home Protection Scheme (HPS)

One of my missions of starting this finance blog is to share with readers some useful tips on financial matters. In relation to one of my previous articles, a reader has raised a very good question on Home Protection Scheme (HPS). So today, I am going to share some information pertaining to how you can apply for exemption from HPS.

First of all, HPS is compulsory if you are using your CPF savings to pay your monthly housing loan installments on your HDB flat. Of course, there are some residents who are cash rich and do not use their CPF savings to pay their HDB mortgage payments. For this group of people, HPS is not compulsory.

But assuming you are using your CPF savings to service monthly HDB loan and would like to apply for exemption from HPS, then you may apply to CPF Board for exemption.

Most people thought that they should write to HDB when applying for exemption of HPS. The confusion is probably because when applying for coverage under HPS for HDB loan, you can apply for HPS cover at HDB Hub or any HDB branch office when you are applying to use your CPF for the monthly housing instalment.


But before you rush into applying for HPS exemption, there are some important things to consider carefully. After all, our home is one of the most important assets and a responsible wealth builder would ensure that their wealth is protected sensibly.

An important thing to note is that HPS is a mortgage reducing term insurance plan. What this means is that over the years, the sum assured, and not the premiums to be paid, would be reduced. And then there are the term life policy, which provides a fixed sum assured throughout the coverage period. Due to the difference on the sum assured, the cost of mortgage reducing insurance is usually [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

Read my other articles on CPF:

  1. CPF’s Home Protection Scheme (HPS)
  2. The Dark Side of CPF Housing Withdrawal Limit

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3 thoughts on “Exemption from Home Protection Scheme (HPS)

  • August 27, 2017 at 6:52 am

    I remember years ago a lump sum of $27k was deducted from my CPF for HPS instead of a few hundred dollars from most private insurance companies.

  • August 29, 2017 at 1:59 pm

    HI SG Wealth Builder

    Can I ask what do you look out for when purchasing a home mortgage insurance? I am currently paying $90 a month for a $300K loan and it seems excessive to me. I signed this up as part of the bank’s package previously.



  • August 29, 2017 at 9:35 pm

    Hi Cindy,

    Thank you for your questions. When I consider mortgage loan, the first and foremost thing I consider is the coverage and not the premium.
    Minimally, the payout must cover the loan and most importantly, it must suit your needs.
    Most people overlook that HDB’s HPS and most mortgage insurance in the market covers death, permanent disability and terminal illness.
    But terminal illness is not the same as critical illness. With cancer and stroke so prevalent in Singapore, your risk is exposed if the coverage is limited to terminal illness.
    Hence, I bought a term insurance and purchase rider to cover the critical illness potion.


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