With effect from 1 January 2012, about 362,500 CPF members who are paying annual Home Protection Scheme (HPS) premiums will enjoy average savings of 12% on their premiums. This constitutes 80% of members who are currently paying annual premiums for their HPS, while the rest will continue to enjoy the low premium rates they are currently paying.
With the reduction, CPF members will pay significantly lower HPS premiums. For example, a male member aged 36 years old who is servicing a $150,000 housing loan from HDB for 25 years, will pay a lower premium of $195.30 instead of $223.05 (equivalent to a 12% discount), when he joins the scheme from 1 January 2012.
Members who join the HPS scheme on or after 1 January 2012 will get to enjoy the new rates, while existing members paying annual HPS premiums will pay the lower premiums when they renew or adjust their HPS coverage on or after 1 January 2012.
Click this link for the announcement at CPF website.
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