row of homes depicted in Australian currency notes depicting home mortgage servicability concerns

The affordability of homes in Australia is continuing to decline“: this is how we introduced this post when it was first published in September 2011 – and it seems that the situation has only worsened, with home mortgage servicability more of an issue for families.

The major issues for aspiring first home-owners are: the struggle to accumulate a deposit to take that first step towards ‘every Australian’s dream’ (of owning their own home); and the uncertainty that they will be able to service that mortgage for its duration.

Home mortgage servicability doesn’t become any less challenging after the home is secured and the mortgage terms negotiated. This home mortgage servicability concern is impacted by two particular issues: the first being the risk that interest rates will rise and put meeting the committed repayments beyond reach; the other being, the certainty of an income stream from which to make the payments.

Whilst servicing the repayment costs of the home mortgage may not seem a problem whilst there is a regular income flowing into the household (one with sufficient surplus after meeting essentials, discretionary spending on the children and providing for anticipated emergencies), the protection of the family home in the event of a significant accident or change in health status of the primary income-earner(s) is not adequately considered – nor dealt with – in most Australian homes.

The July 2011 Press Release from AMP highlights the plight of many households in Australia.

Home mortgage servicability secured
– life insurance products protect income and assets

Continuum Financial Planners Pty Ltd has published a number of articles highlighting the need for adequate personal risk protection through life insurance products. These products include Death, Total and Permanent Disability, Critical Illness and Income Protection insurance policies. In determining the appropriate level of cover in each of the insurance policies taken, one factor to consider is the ‘income replacement’ need of the insured – and when home mortgage servicability is an issue, this will certainly form part of the calculation.

During the course of a meeting with one of our experienced advisors, we can establish with you the appropriate level of protection required to keep your family – and your home – financially secure in the event of your succumbing to serious illness or being involved in a serious accident; or indeed your untimely demise. For your peace of mind – and because like us, you care – phone our office (on 07-3421 3456), or use the website Contact Us facility to arrange a meeting to review your personal risk insurance needs.

First posted in September 2011, this article has been occasionally refreshed/ updated, most recently in April 2021.