{"id":9155,"date":"2017-02-20T10:00:55","date_gmt":"2017-02-20T02:00:55","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=9155"},"modified":"2022-07-01T04:06:08","modified_gmt":"2022-06-30T20:06:08","slug":"mortgage-insurance-homeowners","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/mortgage-insurance-homeowners\/","title":{"rendered":"Mortgage insurance: What is it and why homeowners should get it"},"content":{"rendered":"
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Singaporeans have about 45.8 percent of their assets in residential property, and this is hardly surprising given that more than 90 percent of citizens own a home. This also means mortgage loans make up a large percentage of household liabilities, or <\/span>74.6 percent <\/span><\/a>to be exact.<\/span><\/p>\n

\"Mortgage
Mortgage insurance helps you and your loved ones have peace of mind, especially in times of uncertainty<\/figcaption><\/figure>\n

For the majority of homeowners, their home is probably their asset for life, with some hoping to transfer it to their loved ones when they pass on. But what happens when something unfortunate befalls the home-owner and he\/she will not be able to service the mortgage loan? \u00a0<\/span>This is when taking out a mortgage insurance comes in handy, or even necessary, when it comes to protecting your loved ones. <\/span><\/p>\n

What exactly is mortgage insurance?<\/b><\/h3>\n

Mortgage insurance protects home-owners and their families against losing their homes in the event of death or permanent disability of the former. In the unfortunate event that the homeowner has passed on with outstanding mortgage loans to be paid, this can become a potential financial burden to the rest of the family members if they are not prepared for it. Should they not be able to continue servicing the loan, their home may be foreclosed, leaving them to be homeless. This is especially so for homeowners who reside in a private property.<\/p>\n

In Singapore, mortgage insurance is also known as a Mortgage Reduced Term Assurance (MRTA) as the sum assured is gradually reduced as the housing loan gets paid off every month. <\/span><\/p>\n

For owners of HDB flats using their CPF money to pay off their mortgage<\/span><\/a>, they will be automatically insured under the Home Protection Scheme. If the insured member becomes permanently disabled or dies prematurely before age 65, the CPF Board will pay the outstanding housing loan based on the amount he or she is insured. \u00a0<\/span><\/p>\n

For private property and executive condominium owners, it is not compulsory to take up mortgage insurance. However, the higher price of private residential properties can be a more compelling reason to take it up, especially if the mortgage loan can become a potential financial burden. <\/span><\/p>\n

Mortgage insurance is not to be confused with <\/span>home insurance<\/span><\/a>. Home insurance protects your home, the contents and renovations against unforeseen events such as fire and theft. To put it simply, mortgage insurance helps to ensure you can continue to pay your mortgage loan, whereas a home insurance pays you when damage is done to your property. <\/span><\/p>\n

Should you take up mortgage insurance: 3 Questions To Ask <\/b><\/h3>\n