Mortgage Protection Insurance

There are various options available with different pricing.

Most insurers offer: 2 years, 5 years, until age 65, or until age 70.

Choosing a payment period of 5 years means that you'd receive claim payments for a maximum of 5 years. If you choose a "Age 65" payment period, your payments would continue until you reach age 65 (as long as you're still unable to work during that time).

We will advise your best options based on your situation and goals.

Your income protection payments start after your Wait Period has past.

The Wait Period is the minimum length of time you must be unable to work for before payments begin.

You choose the waiting period. Common options are: 4, 8, 13, 26 weeks.

Longer Wait Periods make your insurance more affordable, however if you would be under financial pressure soon after your income stops (e.g. people with less cash savings) then you should select a shorter period.

Policies are designed to cover your actual monthly mortgage repayments OR up to 45% of your monthly income.

However you can insure a lower amount if you like, to keep your premiums down.

If your income changes, it's best to revisit the amount you have insured and check if it still matches your situation.

Usually mortgage insurance policies don’t cover redundancy, however some insurers offer redundancy cover as an optional ‘add-on’.

See our Redundancy Insurance page.

No. Mortgage protection in non-taxable, so the amount you have insured for is the amount that will end up in your bank account each month.

This varies from bank to bank, usually the only compulsory insurance you need when applying for a mortgage is insurance for the home itself.

However, it is often encouraged by banks to include mortgage protection as it drastically decreases the probability of a mortgagee sale should you not be able to work. Try to resist putting your insurance through the bank, even if they suggest it. We often see policies setup by banks which have no relation to the client’s situation and are too expensive. Talk to us instead.

Having either income protection or mortgage insurance will only assist you in your goal of securing a mortgage.