Everything you need to know about mortgage insurance in Singapore
You will have to spend a considerable amount of money in order to become a property owner in Singapore. Once you purchase a new property, it is your responsibility to provide enhanced protection to it. That’s where mortgage insurance can assist you with.
What exactly is mortgage insurance?
Mortgage insurance can simply be defined as the process of offering enhanced protection to your property in Singapore. If that is your home, you will not just be providing protection to it, but also to your loved ones who live inside the home. From the recent studies, it has been identified that most of the people who live in Singapore don’t tend to go for mortgage insurance plans. That’s mainly because Singaporeans think of mortgage insurance as an additional expenditure.
Why should you obtain mortgage insurance?
All the property owners who live out there in Singapore are strongly encouraged in order to go for mortgage insurance. In fact, real estate experts claim that purchasing a mortgage insurance plan is somewhat similar to subscribing into a life insurance policy. For example, if you cannot pay the mortgage payments, due to a permanent disability or even death, the mortgage insurance policy would continue the payments for you. As a result, you don’t need to worry about losing the property that you have purchased. This can provide peace of mind to your loved family members.
What are the types of mortgage insurance policies available for you?
When you make the decision to obtain a mortgage insurance policy, you can start shopping for a one. When you are engaged with shopping, you would realize that there are two main types of policies available for you. They include HPS and MRTA. It is important for you to have a clear understanding about these two types of policies in order to go for the perfect one out of them.
If you are the owner of a HBD flat in Singapore and if you are using the amount saved in your CPF account in order to make monthly payments for it, it is important for you to get insured under Home Protection Scheme. If you are using cash in order to make the monthly payments, it is not mandatory to obtain a HPS insurance policy, but it is always better to have a one in order to experience the benefits delivered by it.
For all the private properties, mortgage insurance plans are being offered under the Mortgage Reduced Term Assurance (MRTA) plan. You will be able to obtain it from a variety of private insurance companies and financial institutions. MRTA is somewhat similar to HPA, but you can see few notable differences. For example, it can be transferred and even if you purchase a new property, you will be able to provide coverage to it. On the other hand, you will not be asked to pay additional amounts of money when you are purchasing the insurance policy just because of your age.
Still looking around for your next property? Come take a look at our lists of upcoming new launches in Singapore.
- Shunfu Road Condo / Marymount Condo
- Bukit Batok Condo
- Hundred Palms Residences EC (executive condo)
- Sengkang EC
Existing new launch condos