Refinancing an HDB housing loan does not by itself require you to apply to change your Home Protection Scheme (HPS) cover. CPF Board distinguishes between a change of lender and a change to the loan amount or repayment period. If both loan figures stay the same, it says no adjustment is required.
If the loan amount or repayment period is reduced, CPF Board says it will adjust the cover automatically and issue new cover based on the latest loan details. If the amount or period increases, it says it will write to ask you to apply for an adjustment. An increase in cover is subject to approval and good health. Read CPF Board’s guidance on refinancing and HPS.
- Compare the current and proposed loan amounts.
- Compare the current and proposed repayment periods.
- Check for CPF Board correspondence and verify your cover after the refinance.
- Ask CPF Board about a case where one figure rises and the other falls.
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Compare the loan details before and after
| Change at refinancing | What CPF Board says |
|---|---|
| New lender with the same loan amount and period | No adjustment required |
| A reduction in the loan amount or repayment period | CPF Board adjusts cover automatically |
| An increase in the loan amount or repayment period | CPF Board writes asking you to apply to adjust cover |
| One figure rises and another falls | Ask CPF Board how it will treat the combined change |
Keep the final loan details alongside your HPS records. If CPF Board issues new cover after a reduction, it says the premium for the new cover is deducted from your CPF Ordinary Account.
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Work through a lender switch
Imagine your household changes from an HDB loan to a bank loan. The amount and repayment period stay the same, but the new interest rate changes the monthly payment. For the HPS adjustment question, CPF Board’s guidance points to the loan amount and repayment period. Compare those fields in the final documents. If the final loan extends the repayment period, follow CPF Board’s instructions for an increase.
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Frequently asked questions
Should I assume a higher amount is covered from the day I refinance?
Check the actual coverage and correspondence. CPF Board says an increase is subject to approval and good health.
What if my co-owner and I also change who pays the instalment?
Review that change separately with CPF Board. See how co-owners can calculate their HPS coverage shares.