What is mortgage insurance

Mortgage insurance is a type of insurance policy that protects the lender or the borrower in the event of death, terminal illness, or total permanent disability. In the context of HDB housing loans, the Home Protection Scheme (HPS) is a mortgage-reducing insurance scheme administered by the CPF Board. It ensures that CPF members and their families do not lose their home under such circumstances. HPS insures members up to age 65 or until the housing loans are paid up, whichever comes first.