Best Mortgage Insurance in Singapore (2021) | The king of song (2023)

Every consumption situation is unique. SingSaver Collected 'The most appropriate' list so you can decide what works best for you.

What if one day we can't repay the mortgage? With mortgage insurance, you can be sure that your outstanding loan balance will be covered in the event of an accident or tragedy.

The long list of insurance products that are considered important when buying a home seems endless - and for good reason. Your home is probably the most expensive asset you own, and the importance of protecting it is endless.

Fire insurance and home insurance are probably the first things that come to mind when we talk about this topic, as they are often referred to as the ultimate home insurance combination. However, you can notice another equally important financial insurance, mortgage insurance, to deal with the chaotic life.

What is mortgage insurance?

Mortgage insurance is also known as mortgage loan insurance (MRTA). This means that the sum assured decreases the longer the policy term - and the outstanding mortgage balance also decreases over time (as shown in the table above).

When life eats away at you and you realize you can no longer repay your home loan, mortgage insurance provides a safety net in the form of a lump sum to cover the outstanding home loan amount.

This ensures that if something happens to you or you worry about the possibility of homelessness, your spouse and/or family will never have to bear the brunt of the loan repayments. In addition to avoiding a heavy financial burden, purchasing mortgage insurance can give you peace of mind that your family will always have a place to call home.

Who should buy mortgage insurance?

Admittedly, all HDB house owners who choose to pay off their mortgage through HFP savings were forcedHome Protection Scheme (HPS). However, there are private insurance products on the market that can provide you with more benefits and better coverage than HPS.

That being said, whether you own an HDB flat or a private property, if you have taken out a home loan, it is highly recommended to purchase mortgage insurance. As we've established, your home is your most valuable asset, and you want to protect it from foreclosure if your ability to make mortgage payments is reduced.

We've narrowed down the best mortgage insurance plans in town below to make your search easier.

Best mortgage insurance plans in Singapore

name of the planinterestThe biggest advantageOptional drivers/benefitsOther data
AXA insurance in denial0% do 15%It covers death, total and permanent disability or terminal illness

Choice of flat or regular premium payment, every 1 year, from 10 to 30 years

Single premium payment period from 5 to 30 years

Regular premium payment terms from 10 to 30 years

mutual life insurance of co-owners

Personal compensation in the event of an accident

Benefits of Life Accelerator

Waiver of premium payment

Great Eastern Mortgage CareLink to mortgage interest ratesIt covers death, disability or terminal illness

mutual life insurance of co-owners

Fixed premium during a limited premium period

Join the regular premium package and get 12 months of free dengue treatment
Etiqa eProtect mortgage1% do 4%It covers death, total and permanent disability or terminal illness

The insurance period is from 6 to 40 years or up to 75 years (ANB), whichever comes first

Pay premiums for 90% of the policy term

Additional security exemptionsFuneral expenses Cash advance
Prudential Prudential Pant1% do 7%It covers death or terminal illness, with additional coverage for total and permanent disability

Maturity period from 10 to 35 years

mutual life insurance of co-owners


Early crisis relief

Crisis immunity III

AXA insurance in denial

Best Mortgage Insurance in Singapore (2021) | The king of song (2)

When you buy a mortgage insurance plan, you will likely link the interest on your home loan to the insurance rate. The last thing you want is to be more or less insured.

  • Example of excess insurance: mortgage interest on3 %The mortgage insurance rate is5 %
  • Example of subinsurance: Mortgage interest on3 %The mortgage insurance rate is1 %

Therefore, an insurance plan that offers a wide range of interest rates is crucial. fortunately,AXA insurance with a decreasing termHouse owners are offered exactly that service - with prices from 0% to 15%. Best of all, interest rates can be increased in 1% increments, giving you the flexibility to choose the coverage you need and seamlessly adjust to your mortgage rate.

Thanks to the program's flexible premium payment terms, you have the flexibility to choose recurring payment terms if you don't want to pay a one-time premium. Note that if you choose the former, your premiums for the last three years will be deducted.

Great Eastern Mortgage Care

Best Mortgage Insurance in Singapore (2021) | The king of song (3)

If increased premiums are one of your biggest concerns,Great Eastern Mortgage Care ProgramGet rid of these worries now. Your annual premium amount is fixed for a limited payment period. The limited contribution period means that even if the policy term is 10 years, the scheme can be fully paid out within 8 years.

You will also be pleased to know that if you and your spouse are co-owners, you will both be jointly insured and receive compensation equal to the outstanding loan if something happens to one of you.

In addition, if you feel the need to increase your critical illness cover, you also have the option of choosing additional cover for 37 different types of illnesses through the MortgageCare (Life Protection) programme.

Etiqa eProtect mortgage

Best Mortgage Insurance in Singapore (2021) | The king of song (4)

If you're looking for flexibility in your mortgage insurance plan,eProtect Mortgage by Etiqais an option worth considering. The cover is fairly comprehensive with a lump sum payment in the event of death, total and permanent disability or terminal illness. Insureds can choose the desired term of the policy in the range of 6 to 40 years or up to 75 years (next birthday), whichever comes first.

Depending on your mortgage interest rate, you can choose your preferred interest rate from 1% to 4%. Limited premium periods are also taken into account, allowing insurance underwriters to pay only 90% of premiums instead of the entire policy term.

You can also opt for the eXTRA Safety Waiver, which provides additional premium waiver coverage in the unfortunate event of a serious illness diagnosis.

Prudential Prudential Pant

Best Mortgage Insurance in Singapore (2021) | The king of song (5)

What sets it apart from the others on this list is that you have the freedom to choose how often you pay your premium (monthly, quarterly, semi-annually or annually) as your premium amount remains the same. Although there are no restrictions on payment terms and the cover is not as comprehensive as Etiqa (only death and terminal illness cover), you will find that this mortgage insurance scheme protects you from the unexpected.

You can choose the desired policy term (10 to 35 years) and interest rate (1% to 7%) plus the sum assured to pay off the remaining amount of the home loan in full. If you and your spouse own your home together, you'll want to know that, tooPrudential Pantis joint life insurance that insures both of you.

Protected by SDIC Designated Limits.

NOTE: This is product information only. Before purchasing a product, it may be a good idea to seek advice from a qualified advisor. If you choose not to seek advice from a qualified adviser, you should consider whether this product is suitable for you. If you purchase an insurance product that is not right for you, it may affect your ability to meet your future health needs.

If you buy a policy and decide that the policy is not suitable, you can cancel the policy under the free review clause (if any) and the insurer can recover the costs incurred in covering the policy.

Read the following:
Home insurance promotions and discounts to protect your home
Home Insurance: Why It Matters and How to Compare the Best Plans?
When and how to refinance a home loan
How much mortgage can you borrow?
Fixed vs Variable Mortgage Rates: Which is Right for You?


How much is PMI on a $300 000 loan? ›

If you buy a $300,000 home, you could be paying somewhere between $1,500 – $3,000 per year in mortgage insurance. This cost is broken into monthly installments to make it more affordable. In this example, you're likely looking at paying $125 – $250 per month.

What type of insurance is most suitable for mortgage protection? ›

What type of insurance would be most suitable for mortgage protection? Mortgage protection insurance is guaranteed coverage for paying off a mortgage, but life insurance could be a better investment.

What percentage should I avoid mortgage insurance? ›

To avoid PMI for most loans, you'll need at least 20 percent of the home's purchase price set aside for a down payment. For example, if you're buying a home for $250,000, you need to be able to put down $50,000.

How to get cheaper mortgage insurance? ›

With conventional financing, you can significantly reduce what you pay for mortgage insurance by being a less-risky borrower.
  1. Improve your credit score. ...
  2. Make a larger down payment. ...
  3. Choose a fixed loan over an ARM.
  4. Choose a loan with a term of 20 years or fewer.
Feb 17, 2019

How much is PMI insurance on a $200000 loan? ›

For example: If your loan is $200,000, and your annual mortgage insurance is 1.0%, you'd pay $2,000 for mortgage insurance that year. That breaks down to a payment of $166 per month. Since annual mortgage insurance is re-calculated each year, your PMI cost will go down every year as you pay off the loan.

Is it better to put 20 down or pay PMI? ›

Putting down 20% on a home purchase can reduce your monthly payment, eliminate private mortgage insurance and possibly give you a lower interest rate.

What types of insurance are not recommended? ›

15 Insurance Policies You Don't Need
  • Private Mortgage Insurance. ...
  • Extended Warranties. ...
  • Automobile Collision Insurance. ...
  • Rental Car Insurance. ...
  • Car Rental Damage Insurance. ...
  • Flight Insurance. ...
  • Water Line Coverage. ...
  • Life Insurance for Children.

What are the two main types of mortgage insurance? ›

There are four main types of mortgage insurance you can purchase: borrower-paid mortgage insurance, single-premium mortgage insurance, lender-paid mortgage insurance, and split-premium mortgage insurance.

What is the age limit for mortgage life insurance? ›

Age Limits

As with other types of life insurance, mortgage life insurance may not be available after a certain age. Some insurers offer 30-year mortgage life insurance to applicants who are 45 or younger, and only offer 15-year policies to those 60 or younger.

What is typical mortgage insurance rate? ›

On average, PMI costs range between 0.22% to 2.25% of your mortgage. How much you pay depends on two main factors: Your total loan amount: As a general rule, PMI expenses are higher for larger mortgages.

Can I cancel PMI if my home value increases? ›

You re-appraise your home after it gains value. Generally, you can request to cancel PMI when you reach at least 20% equity in your home. You might reach the 20% equity threshold by making your payments on time per your amortization schedule for loan repayment.

Is PMI a waste of money? ›

The Bottom Line. PMI is expensive. Unless you think you can get 20% equity in the home within a couple of years, it probably makes sense to wait until you can make a larger down payment or consider a less expensive home, which will make a 20% down payment more affordable.

Do I have to wait 2 years to remove PMI? ›

If you've owned the home for at least five years, and your loan balance is no more than 80 percent of the new valuation, you can ask for PMI to be canceled. If you've owned the home for at least two years, your remaining mortgage balance must be no greater than 75 percent.

How do I put less than 20% down without PMI? ›

Put 10% Down with No PMI by Using a Piggyback Loan

The other 10% required to make up a 20% down payment comes from a second loan, worth 10% of the home's value. That second loan “piggybacks” on the mortgage. It's completely separate which means it will have its own terms and interest rate.

Can mortgage insurance be waived? ›

The only way to cancel PMI is to refinance your mortgage. If you refinance your current loan's interest rate or refinance into a different loan type, you may be able to cancel your mortgage insurance.

How to avoid PMI? ›

One way to avoid paying PMI is to make a down payment that is equal to at least one-fifth of the purchase price of the home; in mortgage-speak, the mortgage's loan-to-value (LTV) ratio is 80%. If your new home costs $180,000, for example, you would need to put down at least $36,000 to avoid paying PMI.

Does credit score affect PMI? ›

Is PMI based on credit score? Yes, your credit score affects how much private mortgage insurance will cost you. A borrower with a higher credit score would likely pay a lower monthly premium for PMI than someone who has a lower credit score, even with the same down payment and mortgage amount.

How much are PMI closing costs? ›

Private Mortgage Insurance (PMI)

Your lender might ask you to put down your first month's PMI premium when you close. The exact amount you'll pay for PMI depends on your lender, but most homeowners pay $30 – $70 each month for every $100,000 they borrow.

Can you pay off your PMI early? ›

You can ask to cancel PMI earlier if you have made additional payments that reduce the principal balance of your mortgage to 80 percent of the original value of your home.

How do you avoid PMI with 10% down? ›

How can I avoid PMI with 10 percent down? If you can make a 10 percent down payment, you could avoid PMI if you use a second loan to finance another 10 percent of the home's purchase price. Combining these will satisfy your first mortgage lender's 20 percent down payment requirement, avoiding PMI.

Is PMI ever a good idea? ›

PMI is an avoidable extra cost associated with buying a home. That said, sometimes paying PMI is the right move; it can help you get into a home that would otherwise be out of reach.

What are 3 kinds of insurance you should have? ›

Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have.

What are the three 3 main types of insurance? ›

  • Health insurance. It allows the insured to cover up medical expenses while visiting a doctor and other major costs usually involved during surgeries. ...
  • Life insurance. ...
  • Rental or property insurance.
Jan 28, 2014

Which type of insurance is required on all mortgage loans? ›

Federal Housing Administration (FHA) loan

FHA mortgage insurance is required for all FHA loans. It costs the same no matter your credit score, with only a slight increase in price for down payments less than five percent.

Does PMI cover death? ›

PMI will reimburse the mortgage lender if you default on your loan and your house isn't worth enough to repay the debt in full through a foreclosure sale. PMI has nothing to do with job loss, disability, or death, and it won't pay your mortgage if one of these things happens to you.

What is another name for mortgage insurance? ›

Private mortgage insurance, also called PMI, is a type of mortgage insurance you might be required to pay for if you have a conventional loan.

Can a 72 year old get life insurance? ›

Can I get life insurance if I'm over 70 or 75? You can buy life insurance if you're in your 70s, but you'll need to compare policies to find one you can afford that provides the coverage you want.

Can a 93 year old get a mortgage? ›

No age is too old to buy or refinance a house, if you have the means. The Equal Credit Opportunity Act prohibits lenders from blocking or discouraging anyone from a mortgage based on age.

What mortgage insurance pays upon death? ›

As the name implies, mortgage protection insurance (also called mortgage life insurance and mortgage protection life insurance) is a policy that pays off the balance of your mortgage when you die. The death benefit from an MPI policy typically decreases as you pay off your mortgage, while your premiums stay the same.

Why is my mortgage insurance so high? ›

Mortgage insurance is calculated as a percentage of your home loan. The lower your credit score and the smaller your down payment, the higher the lender's risk, and the more expensive your insurance premiums will be. But as your principal balance falls, your mortgage insurance costs will go down, too.

How much is mortgage insurance on a $250 000 house? ›

Conventional loans: The mortgage insurance math

The top rate for mortgage insurance on a conventional loan is 1.86%. On a $250,000 loan that would be $4,650 in your first year, which is $387.50 monthly.

How much is mortgage insurance on a $200000 house? ›

While there's no set cost of home insurance at any level—home insurance premiums are influenced by a host of different factors—you can expect to pay between an average of $1,000 and $1,500 per year on a $200,000 home.

Can I get rid of PMI without refinancing? ›

The good news is that there are steps you can take to remove your monthly mortgage insurance payments. Ask to cancel your PMI: If your loan has met certain conditions and your loan to original value (LTOV) ratio falls below 80%, you may submit a written request to have your mortgage servicer cancel your PMI.

What happens when you pay off PMI? ›

Eliminating your PMI will reduce your monthly payments, giving you an immediate return on your investment. Homeowners can then apply the extra savings back towards the principal of the mortgage loan, ultimately paying off their mortgage even faster.

Do you get PMI back when you sell your house? ›

When PMI is canceled, the lender has 45 days to refund applicable premiums. That said, do you get PMI back when you sell your house? It's a reasonable question considering the new borrower is on the hook for mortgage insurance moving forward. Unfortunately for you, the seller, the premiums you paid won't be refunded.

What are the negatives of PMI? ›

The cons to PMI are that it remains with a mortgage until the principal balance falls to 80% below the value of the home. It may take years to reach this threshold and, until then, you'll continue to pay it.

Can you deduct PMI on taxes? ›

The tax deduction for PMI was set to expire in the 2020 tax year, but recently, legislation passed The Consolidated Appropriations Act, 2021 effectively extending your ability to claim PMI tax deductions for the 2021 tax period. In short, yes, PMI tax is deductible for 2021.

Is it important to avoid PMI? ›

Private mortgage insurance (PMI) can be an expensive requirement for getting a home loan. Avoiding PMI can cut down on your monthly payments and make your home more affordable.

Why is it so hard to get PMI removed? ›

To get rid of your PMI, you would need to have built at least 20% equity in the home. This means that you have to bring down the balance of your mortgage to 80% of its initial value (home initial purchase price). At this stage, you may request that your lender cancel your PMI.

Is PMI based on appraised value? ›

Is PMI based on appraisal value? The amount you pay in PMI is a percentage of your principal mortgage loan amount. It is not impacted by appraisal.

Can I avoid PMI with 7% down? ›

How to avoid paying PMI? To avoid PMI for most loans, you'll need at least 20 percent of the home's purchase price set aside for a down payment.

How do I dump PMI ASAP? ›

5 ways to get rid of PMI
  1. Wait for PMI to automatically cancel. PMI automatically drops off of conventional loans once the loan balance is at or below 78% of the home's appraised value. ...
  2. Request PMI cancellation. ...
  3. Get a new home appraisal. ...
  4. Refinance to get rid of mortgage insurance. ...
  5. Refinance into a non-PMI loan program.
Feb 17, 2023

Should I get an appraisal to remove PMI? ›

Most lenders require a real estate appraisal by a state certified appraiser as the primary proof required to eliminate unnecessary PMI insurance. At California Home Appraisals we specialize in helping people just like you rid themselves of unneeded and unwanted PMI insurance.

How do I figure out how much PMI I will get? ›

Take the PMI percentage your lender provided and multiply it by the total loan amount. If you don't know your PMI percentage, calculate for the high and low ends of the standard range. Use 0.22% to figure out the low end and use 2.25% to calculate the high end of the range. The result is your annual premium.

What is the 20% down payment on a $300 000 house? ›

» MORE: Join NerdWallet to assess saving on your existing bills and help you reach your down payment goal faster. Most lenders are looking for 20% down payments. That's $60,000 on a $300,000 home. With 20% down, you'll have a better chance of getting approved for a loan.

How much income do you need to qualify for a $300 000 mortgage? ›

To purchase a $300K house, you may need to make between $50,000 and $74,500 a year. This is a rule of thumb, and the specific salary will vary depending on your credit score, debt-to-income ratio, type of home loan, loan term, and mortgage rate.

How do I calculate my monthly PMI payment? ›

The PMI formula is actually simpler than a fixed-rate mortgage formula.
  1. Find out the loan-to-value, or LTV, ratio of your house. ...
  2. Look at the lender's PMI table. ...
  3. Multiply your mortgage loan by your specific PMI rate according to the lender's chart. ...
  4. Divide the yearly PMI amount by 12 to find out your monthly PMI amount.

Is PMI based on credit score? ›

Is PMI based on credit score? Yes, your credit score affects how much private mortgage insurance will cost you. A borrower with a higher credit score would likely pay a lower monthly premium for PMI than someone who has a lower credit score, even with the same down payment and mortgage amount.

How much is PMI on $100,000? ›

As of 2022, Freddie Mac estimates that PMI costs $30 to $70 per month for every $100,000 borrowed. In other words, annual PMI premiums usually range from 0.5% to 2% of the outstanding principal. There are specific factors that may affect how much a borrower will have to pay for Private Mortgage Insurance.

How much is PMI per 100000? ›

FAQs about PMI calculations

PMI depends on your credit score and LTV (loan-to-value). So PMI on a $100,000 mortgage could range roughly $200–1,800 annually ($16–155 monthly). The more you put down (or pay off your loan) and the better your credit score, the less you pay in PMI.

Can I afford a 300k house on a $70 K salary? ›

On a $70,000 income, you'll likely be able to afford a home that costs $280,000–380,000. The exact amount will depend on how much debt you have and where you live — as well as the type of home loan you get.

What is the house payment on a $800000 house? ›

Monthly payments on an $800,000 mortgage

At a 7.00% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $5,322 a month, while a 15-year might cost $7,191 a month.

How much do you have to make a year to afford a $400000 house? ›

Assuming a 30-year fixed conventional mortgage and a 20 percent down payment of $80,000, with a high 6.88 percent interest rate, borrowers must earn a minimum of $105,864 each year to afford a home priced at $400,000. Based on these numbers, your monthly mortgage payment would be around $2,470.

Can I afford a 500k house on 100K salary? ›

A 100K salary means you can afford a $350,000 to $500,000 house, assuming you stick with the 28% rule that most experts recommend. This would mean you would spend around $2,300 per month on your house and have a down payment of 5% to 20%.

How much do you have to make a year to afford a $650000 house? ›

Based on the current average for a down payment, and the current U.S. average interest rate on a 30-year fixed mortgage you would need to be earning $126,479 per year before taxes to be able to afford a $650,000 home.

How much do you have to make a year to afford a $1000000 house? ›

What your salary needs to be to afford a $1 million home. A homebuyer would need to earn nearly $200,000 annually to afford a $1 million mortgage. The number of homes in the United States valued at $1 million or more has steadily increased in recent years.

How many years do you pay PMI? ›

You typically need to pay PMI until you have built up 20% equity in your home. PMI should end automatically when you have 22% equity in your home. In some cases, you can stop paying PMI at the midpoint of the mortgage, regardless of the equity amount.

When can I stop paying PMI? ›

You have the right to request that your servicer cancel PMI when you have reached the date when the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. This date should have been given to you in writing on a PMI disclosure form when you received your mortgage.

How much is PMI a month? ›

Private mortgage insurance rates typically range from 0.19% to 2.25% of your mortgage. PMI rates depend on your credit scores, loan-to-value ratio and debt-to-income ratio, among other factors.


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