“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. Despite regular debate and political tension the situation has only worsened. Home mortgage servicability is even more of an issue for families. The lack of housing supply is now an increasing 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’; and
- the uncertainty that they will be able to service that mortgage for its duration.
Securing a home – and the attendant mortgage – doesn’t relieve the home mortgage affordability challenge. Two particular issues impact home mortgage servicability –
- 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 March 2025 Press Release from AMP Insights, highlights the current 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 you care – arrange an appointment with one of our experienced advisers to review your personal risk insurance needs –
- phone our office on 07-3421 3456, or
- at your convenience, use the linkef Book A Meeting facility.
(This article was originally posted by us in September 2011. We occasionally refreshe/ update it, most recently in August 2025.)