Housing Loan and Mortgage Insurance

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Dennis Ng
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Location: Singapore
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Re: Housing Loan and Mortgage Insurance

Post by Dennis Ng »

Al8ert wrote:Hi Dennis,

I find your forum very useful and informative. I am quite familiar with the value of mortgage brokers in getting the best deal as this was quite helpful when I bought property in UK. Unfortunately, I did not know of your company until recently, and I have taken housing loan early this year straight from bank. Anyway, I will surely get in touch with you after my 2-yr lock-in period to get the best loan deal from you.

Anyway, here are my clarifications and would appreciate if you can shed light to these:

1. Is mortgage insurance mandatory for housing loan used to buy a private condo? Do you recommend taking a mortgage insurance?
2. Can I use my CPF to pay my mortgage insurance premium for the private condo?
3. What are the good deals that you currently have for mortgage insurance? My current homeloan is $355k, 20yrs, and would like to cover me and my wife for death and permanent disability. How much is typical premium if we are both covered? And how much if only me is covered? I'm 35 yrs old while my wife is 33.
4. I currently have mortgage insurance from Great Eastern, but I would like to get a different one if premium is cheaper. I assume that I can easily transfer to another mortgage insurance provider, is it correct or?

Thanks a lot and I will wait for your response. More success to you and your team.
Hi Al8ert,

welcome to the forum.

thanks for your compliments. My reply to your questions below:
1. In Singapore, it is NOT compulsory to get Mortgage Insurance for private properties (only compulsory for HDB flats). However, I personally think it is good to have Mortgage Insurance or other insurance to insure the risk of debt obligations in event anything happens to the owner/borrower.

2. For private properties, if you get mortgage Insurance, you CANNOT use CPF to pay for premiums.

For HDB flats, it is possible to use CPF to pay for Mortgage Insurance premiums if you take Mortgage Insurance from CPF Board. You cannot use CPF if you get Mortgage Insurance from private insurers.

3. We do not provide service of Mortgage Insurance. However, if you want to, we can refer to you reliable people who do.

4. yes, you can switch to another insurance co. Things to note are: any changes in your medical condition from time you had the Great Eastern Mortgage Insurance and now? If yes, you might not want to switch, as insurer might impose higher premiums if you have medical conditions now.

Other than premiums, you also should consider other factors eg. ease of claim and claim experience of the insurer. The last thing you want is pay cheaper premiums but delay/difficulty in getting claims when something happens.

Feel free to ask other questions here. You can also email us at info@HousingLoanSG.com or call us at 6737 8801. We are pleased to be of service to you.

Cheers!

Dennis Ng
Cheers!

Dennis Ng - When You Master Your Finances, You Master Your Destiny

Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
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