Mortgage Protection in New Zealand
Mortgage protection insurance — sometimes called mortgage repayment cover — helps you keep paying your home loan if you cannot work because of illness or injury, and with some policies, redundancy. The aim is simple: protect the roof over your head when income stops.
What is mortgage protection?
It is a focused form of income protection aimed specifically at your mortgage. After a wait period, the policy pays a regular benefit set to cover your repayments. Some insurers also offer optional redundancy cover. It is often arranged at the same time as a new home loan, but you can review it at any time.
What it can cover
Who it’s for
- Recent or upcoming home buyers taking on a mortgage
- Single-income households where the mortgage depends on one earner
- Anyone who would struggle to meet repayments after a few weeks off work
- Homeowners wanting peace of mind tied directly to their loan
What to think about
Mortgage protection and full income protection overlap, and which is right — or whether you need both — depends on your loan, income and other cover. An adviser will compare the options so you are not paying twice for the same protection, and will check redundancy terms carefully where that matters to you.
Frequently asked questions
Is mortgage protection the same as income protection?
Does it cover redundancy?
Is this the same as the bank’s mortgage insurance?
Related cover
Ready to compare mortgage protection?
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