12 April 2011

HDB Owners' Mortgage Insurance Lapse

Purchasers of Housing and Development Board ("HDB") apartments who service their HDB loans with their Central Provident Fund ("CPF") savings are required to purchase Home Protection Scheme mortgage insurance.

556,000 owners of HDB apartments fall into this category.

The mortgage insurance lapsed in about 9,000 cases because the home owners did not have sufficient funds in their CPF accounts to pay the premium.  These home owners may have lost their jobs.  It is likely that they also did not have sufficient funds in their CPF accounts to service their mortgages.

8.5 per cent of home owners were exempted from the Home Protection Scheme as they had purchased similar insurance.

About 2 per cent of home owners were not insured due to medical conditions or other reasons.

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Notes

1. HDB owners with insufficient CPF see mortgage insurance lapse TODAY (12 Apr 2011).

2. Housing and Development Board is Singapore's public housing authority and a statutory board under Ministry of National Development.

3. Central Provident Fund operates Singapore's national social security savings plan.

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