HPS Premium, Lease Buyback Scheme and Silver Housing Bonus 2026
Three CPF Board programmes that protect and monetise your HDB flat at different life stages. The Home Protection Scheme is compulsory mortgage insurance that clears your HDB loan if the borrower dies or becomes permanently disabled — protecting the family from inheriting the debt. The Lease Buyback Scheme lets seniors aged 65 and above sell part of their remaining flat lease back to HDB for cash and CPF LIFE top-ups while continuing to live in the flat. And the Silver Housing Bonus gives eligible seniors a cash bonus of up to S$30,000 when they right-size from a larger to a smaller flat. Together, these three programmes form the government safety net for Singapore homeowners from purchase to retirement.
Understanding the Home Protection Scheme (HPS) in Singapore 2026 — Compulsory CPF Mortgage Insurance That Clears Your HDB Loan If the Borrower Dies or Becomes Permanently Disabled
The Home Protection Scheme is one of those CPF programmes that most Singaporeans pay for but never think about — until they need it. HPS is a term insurance policy administered by CPF Board that covers the outstanding HDB loan balance. If the insured member dies or becomes totally and permanently incapacitated (TPI), HPS pays off the remaining HDB mortgage in full. The surviving family keeps the flat with zero outstanding debt.
HPS is mandatory for all CPF members who use their CPF OA to pay for an HDB flat under an HDB loan. If you are servicing your HDB mortgage using CPF, you must be covered by HPS until the loan is fully repaid or until you turn 65, whichever comes first. The premiums are deducted directly from your CPF OA — you never see a cash bill. Most members do not even notice the deduction because it is relatively small compared to the monthly mortgage payment.
The premium is calculated based on three factors: the outstanding loan balance, the remaining loan tenure, and the age of the insured member. A 30-year-old member with S$300,000 outstanding on a 25-year loan pays approximately S$360 to S$500 per year in HPS premiums. As the loan balance decreases and the member ages, the premium adjusts accordingly. At age 55 with S$100,000 outstanding, the annual premium drops to approximately S$200 to S$300. The HPS Premium Calculator estimates your annual premium based on your age, outstanding loan, and remaining tenure.
HPS vs Private Mortgage Insurance — Why Most HDB Owners Should Stick With HPS
Some financial advisors suggest replacing HPS with private term life insurance. The argument: private policies may be cheaper and offer a lump-sum payout to the family (not just the bank). However, HPS has several advantages: premiums are deducted from CPF (not cash), the coverage automatically adjusts to the declining loan balance, and CPF Board administration is hassle-free. For most HDB flat owners, HPS is the simplest and most cost-effective mortgage protection. The Term vs Whole Life Calculator can help you compare if a private policy makes sense for your situation.
Understanding the Lease Buyback Scheme (LBS) in Singapore 2026 — How Seniors Aged 65 and Above Can Sell Part of Their HDB Flat Lease to HDB for Retirement Income
The Lease Buyback Scheme is designed for asset-rich, cash-poor seniors. Many older Singaporeans live in fully paid-up HDB flats worth S$300,000 to S$500,000 but have limited retirement savings. Their wealth is locked in the flat. LBS unlocks part of that wealth without forcing the senior to move out.
Here is how it works: you sell the tail-end of your HDB flat lease back to HDB while retaining a shorter lease that covers you and your spouse to at least age 95. For example, if you are 70 and your flat has 60 years of remaining lease, you sell 35 years of lease back to HDB and retain 25 years (covering you to age 95). HDB pays you for the surrendered portion, and the proceeds are used to top up your CPF Retirement Account (RA) to the Full Retirement Sum (FRS), with any excess paid in cash.
The eligibility requirements for LBS in 2026 are: at least one flat owner must be aged 65 or above, the flat must be a 4-room or smaller HDB flat (5-room and Executive flats are not eligible), all owners must be Singapore Citizens, the household monthly income must not exceed S$14,000, and the flat must have a remaining lease of at least 20 years. The Lease Buyback Calculator estimates the buyback amount, the CPF RA top-up, any cash excess, and the resulting increase in CPF LIFE monthly payout.
The LBS Trade-Off — More Retirement Income Now vs Leaving the Flat to Your Children
The fundamental trade-off with LBS is intergenerational: you monetise the flat for your retirement, but your children inherit a flat with a shorter remaining lease (which is worth less). A 3-room flat in Queenstown with 60 years of lease might be worth S$400,000 to your children as inheritance. After LBS, the remaining 25-year lease might only be worth S$150,000. The S$250,000 difference funded your retirement. For seniors without children or whose children already own property, this trade-off is straightforward. For others, it requires a family conversation.
Understanding the Silver Housing Bonus (SHB) in Singapore 2026 — Up to S$30,000 Cash Bonus for Seniors Who Downsize to a Smaller HDB Flat
The Silver Housing Bonus is the government incentive for seniors to right-size — selling a larger flat and moving to a smaller one, freeing up cash and CPF for retirement. SHB provides a cash bonus of up to S$30,000 to eligible seniors who sell their existing flat and either buy a smaller resale flat (3-room or smaller), buy a short-lease 2-room Flexi flat, or join the Lease Buyback Scheme.
The SHB amount depends on how much of the sale proceeds you top up into your CPF RA. The bonus matches the top-up dollar for dollar, up to S$30,000. If you top up S$30,000 or more from the sale proceeds into your RA, you receive the full S$30,000 SHB. If you top up S$15,000, the SHB is S$15,000. The bonus is credited to your CPF RA (not cash), which means it increases your CPF LIFE monthly payout.
Eligibility for SHB in 2026 requires: at least one flat owner must be aged 55 or above, the flat being sold must be a 3-room or larger HDB flat, the replacement flat must be a 3-room or smaller flat (or a short-lease 2-room Flexi), all owners must be Singapore Citizens, and the household monthly income must not exceed S$14,000. The Silver Housing Bonus Calculator shows the SHB amount you qualify for, the CPF RA top-up impact, and the estimated increase in CPF LIFE monthly payout from the combined top-up and bonus.
How These 3 CPF Housing Protection and Monetisation Calculators Work — HPS Premium Estimation, Lease Buyback Proceeds and Silver Housing Bonus for Singapore
The HPS Premium Calculator takes your age, outstanding HDB loan balance, and remaining loan tenure. It estimates: the annual HPS premium, the monthly CPF OA deduction, how the premium changes as the loan balance decreases over time, and the total premiums paid over the remaining loan tenure. It also compares HPS cost against equivalent private term life insurance.
The Lease Buyback Calculator takes your age, flat type and location, current remaining lease, and current RA balance. It estimates: the lease portion surrendered to HDB, the buyback price, the mandatory CPF RA top-up (to FRS), any cash excess after the RA top-up, and the projected increase in CPF LIFE monthly payout from the higher RA balance.
The Silver Housing Bonus Calculator takes your age, the sale price of the current flat, the purchase price of the replacement flat, the intended CPF RA top-up amount, and household income. It computes: the net cash from the downgrade (sale minus purchase minus costs), the SHB bonus amount (matched dollar for dollar up to S$30,000), the total RA increase (top-up plus SHB), and the estimated additional CPF LIFE monthly payout.
3 Real CPF Housing Examples for Singapore — HPS Premium Breakdown, Lease Buyback for a 3-Room Flat and Silver Housing Bonus for Downsizing Couple
Example 1: HPS Premium for a 32-Year-Old With S$350,000 HDB Loan Over 25 Years
Sarah, 32, just bought a 4-room BTO with an HDB loan. Outstanding balance S$350,000 over 25 years.
For S$40 per month from CPF (not cash), Sarah family is protected against a S$350,000 debt. If she passes away at age 40 with S$290,000 outstanding, HPS clears the entire balance — the family keeps the flat with zero mortgage. This is arguably the best value insurance in Singapore. Use the HPS Calculator with your loan details.
Example 2: Lease Buyback for a 70-Year-Old Couple in a 3-Room Flat in Toa Payoh
Mr and Mrs Wong, both 70, own a fully paid 3-room flat in Toa Payoh. Remaining lease: 55 years. Current market value approximately S$380,000. Mrs Wong RA balance is S$50,000 (below FRS of S$213,000).
The Wongs stay in their flat for 25 more years (until age 95), receive S$17,000 in cash, and their CPF LIFE payout increases by S$600-S$800 per month — a meaningful boost to retirement income. The trade-off: when they pass, the flat reverts to HDB (the remaining lease has expired). Use the LBS Calculator and check your projected payout with the CPF LIFE Estimator.
Example 3: Silver Housing Bonus for a 62-Year-Old Couple Downsizing From 5-Room to 3-Room
Mr and Mrs Tan, both 62, sell their 5-room flat in Tampines for S$620,000 and buy a 3-room resale flat in Bedok for S$350,000. Mr Tan RA balance is S$120,000.
The Tans downsize, top up S$93,000 to RA (using CPF refund from the sale), and receive the maximum S$30,000 SHB. Their combined RA jumps to S$243,000, boosting monthly CPF LIFE payouts by S$450-S$600. They also move to a smaller, more manageable flat. Use the SHB Calculator with your exact sale and purchase prices.
3 Expert Tips for HPS, Lease Buyback and Silver Housing Bonus in Singapore
Do Not Cancel HPS for Private Insurance Unless You Have Done the Full Comparison
Some insurance agents push clients to cancel HPS and buy their term life policy instead. Before agreeing, compare: HPS is paid from CPF (not cash), automatically adjusts to loan balance, and has no underwriting issues. Private policies pay cash to beneficiaries (more flexible) but require cash premiums, medical underwriting, and may lapse if premiums are missed. For most HDB owners, keeping HPS and buying additional term life for non-housing needs is the smarter approach.
LBS Is Only Available for 4-Room and Smaller Flats — 5-Room Owners Must Downsize First
If you own a 5-room or Executive flat and want to use LBS, you must first sell and buy a 4-room or smaller flat, then apply for LBS on the smaller flat. This two-step process adds transaction costs. However, the combination of downsizing (unlocking the size premium) plus LBS (monetising the remaining lease) can generate S$200,000 to S$300,000 in retirement funding. Plan this transition early — starting discussions at age 60 gives you 5 years to execute before LBS eligibility at 65.
Maximise the Silver Housing Bonus by Topping Up at Least S$30,000 to Your RA
The SHB is a dollar-for-dollar match capped at S$30,000. If you top up S$20,000, you get S$20,000 SHB. If you top up S$30,000, you get the full S$30,000. Always aim to top up at least S$30,000 to capture the maximum bonus. The S$30,000 SHB in your RA earns 4% interest and increases your CPF LIFE payout permanently. It is free money from the government — do not leave it on the table by topping up less than the cap.
16 Frequently Asked Questions About HPS, Lease Buyback and Silver Housing Bonus in Singapore
What is the Home Protection Scheme and who must join it?
HPS is a compulsory mortgage insurance scheme for CPF members who use their CPF OA to service an HDB housing loan. It covers the outstanding HDB loan if the insured member dies or becomes totally and permanently incapacitated. All CPF members using OA for HDB loan payments must be covered until the loan is fully repaid or age 65.
How much does HPS cost per year?
HPS premiums depend on age, outstanding loan balance, and remaining tenure. For a 30-year-old with S$300,000 outstanding, premiums are approximately S$360-S$500 per year. Premiums decrease as the loan balance reduces. The total cost over a 25-year loan is typically S$7,000-S$12,000, paid entirely from CPF OA.
Is HPS paid from cash or CPF?
HPS premiums are deducted directly from your CPF OA. You never need to pay cash. This is one of the key advantages of HPS over private mortgage insurance, which typically requires cash premium payments.
Does HPS cover bank loans for HDB flats?
No. HPS only covers HDB housing loans (loans taken directly from HDB). If you finance your HDB flat with a bank loan instead of an HDB loan, HPS does not apply. You would need to arrange separate mortgage insurance through the bank or a private insurer.
What is the Lease Buyback Scheme?
LBS allows eligible seniors aged 65 and above to sell the tail-end of their HDB flat lease back to HDB while retaining enough lease to cover them to at least age 95. The proceeds are used to top up CPF RA to the FRS, with any excess paid in cash. The senior continues living in the flat on the retained shorter lease.
Who is eligible for the Lease Buyback Scheme in 2026?
Eligibility requires at least one owner aged 65 or above, the flat must be 4-room or smaller, all owners must be Singapore Citizens, household monthly income must not exceed S$14,000, and the flat must have at least 20 years remaining lease. The flat must also be fully paid up with no outstanding HDB loan.
Can I still live in my flat after joining LBS?
Yes. You continue living in your flat for the duration of the retained lease (covering you to at least age 95). Your daily life is completely unaffected. The only change is that the total remaining lease on the flat is shorter, which affects its resale value if you decide to sell later.
What happens to the flat after the retained lease expires?
When the retained lease expires, the flat reverts to HDB. If both owners have passed away before the lease expires, the remaining lease can be inherited by eligible beneficiaries. If both owners are still alive when the lease expires (unlikely given it covers to age 95), HDB will make alternative housing arrangements.
What is the Silver Housing Bonus?
The Silver Housing Bonus is a government cash bonus of up to S$30,000 for eligible seniors who sell a larger HDB flat and buy a smaller one or join the Lease Buyback Scheme. The bonus matches the amount topped up to CPF RA dollar for dollar, capped at S$30,000. It is credited to the CPF RA to boost CPF LIFE payouts.
How do I qualify for the Silver Housing Bonus?
Eligibility requires at least one owner aged 55 or above, the flat being sold must be 3-room or larger, the replacement flat must be 3-room or smaller (or a short-lease 2-room Flexi), all owners must be Singapore Citizens, and household monthly income must not exceed S$14,000.
Is the Silver Housing Bonus paid in cash or CPF?
The SHB is credited to your CPF Retirement Account, not paid as cash. This means it directly increases your CPF LIFE monthly payout but cannot be withdrawn as a lump sum. The design ensures the bonus provides sustained retirement income rather than a one-time windfall that might be spent quickly.
Can I get SHB if I join the Lease Buyback Scheme instead of downsizing?
Yes. Joining LBS qualifies you for SHB as well, provided you meet the eligibility criteria. The RA top-up from the LBS buyback proceeds counts toward the SHB matching. This means LBS and SHB can be combined for maximum retirement funding from a single flat.
How much can I get from the Lease Buyback Scheme?
The buyback amount depends on the flat type, location, and the number of lease years sold back to HDB. For a 3-room flat in a mature estate with 50 years remaining lease, the buyback for 25 years of surrendered lease might be S$150,000-S$200,000. The exact amount is determined by HDB based on market valuation of the surrendered lease portion.
Can 5-room flat owners use the Lease Buyback Scheme?
No. LBS is only available for 4-room and smaller flats. Owners of 5-room and Executive flats must first downsize to a 4-room or smaller flat before they can apply for LBS. However, they may qualify for the Silver Housing Bonus when they downsize.
Does HPS cover both joint owners of an HDB flat?
Each CPF member who uses their OA to pay the HDB loan must be individually covered by HPS. If both spouses use CPF for the mortgage, both are insured. The coverage for each member is proportional to their share of the CPF payment. If one spouse dies, their portion of the outstanding loan is cleared by HPS.
What happens to HPS when I turn 65?
HPS coverage ends at age 65 regardless of whether the HDB loan is fully repaid. If you still have an outstanding balance at 65, you need to arrange private mortgage insurance or ensure you have sufficient savings or other insurance to cover the remaining debt. Most HDB loans are structured to be fully repaid before 65.
Related CPF and Housing Calculators for Singapore
Legal Disclaimer and Editorial Transparency
Home Protection Scheme, Lease Buyback Scheme, and Silver Housing Bonus per CPF Board and HDB published guidelines for 2026. HPS premiums are estimates based on CPF Board actuarial tables. LBS buyback amounts depend on HDB valuation of the surrendered lease. SHB eligibility and amounts subject to prevailing government policy. FRS of S$213,000 for members turning 55 in 2026. This guide is for informational and educational purposes only. It does not constitute financial, insurance, or retirement advice. Consult CPF Board and HDB directly for your specific eligibility and entitlements. Published by MAFHH INTERNATIONAL LTD. Editorially independent. We do not collect any data you enter into our calculators.
