Mortgage Protection
Mortgage Protection Insurance in New Zealand
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What Is Mortgage Protection Insurance?
Mortgage Protection Insurance — also known as mortgage repayment cover — helps pay your mortgage instalments if you become ill, injured, or unable to work due to disability. It acts as a safety net, ensuring your home loan continues to be serviced during periods of lost income.
Unlike Life Insurance (which pays a lump sum), Mortgage Protection provides regular monthly payments to help you meet your ongoing mortgage obligations.
Do You Really Need It?
You may benefit from Mortgage Protection if:
- You rely heavily on your income to pay your mortgage
- You have dependents or limited savings
- You lack sufficient Income Protection or Trauma cover
Before applying, review existing protections such as ACC, sick leave, WINZ benefits, or redundancy support, and ensure your insurance types don’t overlap.
Why Mortgage Protection Insurance Is Important?
Mortgage Protection Insurance can help with the following:
Keep up with repayments during illness or injury
- Ensures your mortgage payments are made while you focus on recovery.
Protect your home from repossession risk
- Prevents missed repayments that could put your home at risk if you lose income.
No ACC offset (in many policies)
- Some insurers continue paying benefits even if you receive ACC, provided you meet policy conditions.
Covers more than just repayments
- Certain policies allow 110 %–115 % of mortgage instalments to cover related costs such as rates, insurance, and maintenance.
Flexible benefit options
- Choose short-term (e.g., 2 years) or long-term cover (to age 65 or 70) to match your needs.
How Much Does It Cost?
Premiums depend on factors such as age, health, smoking status, waiting period, benefit duration, and mortgage size.
Comparing multiple insurers through a qualified adviser can save you significantly over time.
Key Features
| Feature / Condition | Description |
|---|---|
| Waiting Period | Time before payments start — typically 4 to 13 weeks after claim approval. |
| Benefit Period | How long payments continue — e.g., 2 years, 5 years, or until age 65 / 70. |
| Cover Amount | Many insurers allow up to 110 %–115 % of mortgage instalments to include home-related expenses. |
| Partial Return to Work | If you return part-time, benefits are usually adjusted proportionally. |
Features may vary depending on the policy wording and terms & conditions of a particular insurer.
Mortgage Protection Insurance Costs & Premiums
The cost of Mortgage protection insurance depends on several key factors. Understanding these helps you choose the right balance between affordability and coverage.
Personal Profile
Your age, gender, health, and occupation directly affect your premium.
- Younger and healthier individuals usually pay less.
- Occupations with higher physical or safety risks generally cost more to insure.
Benefit Structure
The amount of monthly benefit, waiting period, and benefit duration are major pricing drivers.
- A higher benefit amount increases premiums.
- A shorter waiting period (how soon payments start after illness or injury) also raises the cost.
- A longer benefit period (how long payments continue) adds further to premiums but offers more protection.
Policy Options & Add-Ons
Optional features can enhance flexibility and value but also impact the cost:
- Indexation: Automatically increases your benefit each year to match inflation.
- Residual or Partial Benefit: Pays part of your benefit if you return to work part-time.
- Premium Waiver: Lets you pause premium payments while you’re on claim.
Why Choose Global Finance?
Tailored Protection for Your Home
Your home could be your biggest investment. We work with New Zealand’s insurers to obtain mortgage protection that suits your income, loan size, and goals — so that you have cover if illness, injury, or disability stops you from working.
Simple, Expert Guidance
Our advisers explain the differences between reducing, level, or linked income-style cover — helping you choose the right balance of affordability, flexibility, and long-term security.
Valuable Features & Add-Ons
Some policies may offer features such as premium holiday provisions, redundancy cover, and partial disability benefits. We can also help structure your cover to support your mortgage commitments, depending on the policy selected.
Support When You Need It Most
From policy setup to claim assistance, we help guide you through the process and work with insurers to support clear communication throughout the claim process.
Frequently Asked Questions
Ideally when you take out your mortgage — or as soon as possible — so you’re covered before any health issues arise.
We generally recommend you should seek professional tax or accounting advice in this regard.
Your cover does not automatically adjust. Review your policy regularly, especially after interest-rate changes or refinancing.
Only if specified. Some insurers offer optional redundancy protection; others exclude it entirely.
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Head Office
Kudos Business Centre18-22 / 203 Kirkbride Road,
Airport Oaks, Auckland 2022
Call 09 255 5500
Email info@globalfinance.co.nz