Every year hundreds, maybe thousands of Kiwis default on their mortgages. It’s easy to say that this would never happen to you, but if something unexpected happened – like an injury or illness that stopped you from working – your situation could change quickly.
Struggling to pay your mortgage for whatever reason can be incredibly stressful and difficult. Luckily, there are ways that you can protect yourself, your family and your property.
A smart, suitable home loan
The best protection against mortgage default is to have a home loan that’s suitable to you, your financial means and your property. If your interest rate is too high, your loan is poorly structured, or you’re paying exorbitant fees there’s a far higher chance that you won’t be able to make repayments when times are tough.
For that reason, you need to review your mortgage every year with the help of an expert advisor to make sure that it’s still suitable. If you refinance or secure a new home loan make sure you get advice from someone you can trust, who takes the time to understand your circumstances and tailor a mortgage to you.
Mortgage protection insurance
If you were unable to work due to injury or illness making your mortgage repayments could all of a sudden become a real challenge. If you were to pass away your family might also struggle without your income.
Mortgage protection insurance is the solution.. If you were to be made redundant through no fault of your own, injure yourself or become permanently disabled mortgage protection insurance would provide monthly payments to help you handle your home loan. If you were to pass away your family would also receive a lump sum or monthly payments for a set period of time.
Other helpful insurance products
Unfortunately, Murphy’s law tells us that if something can go wrong it will. That’s why, when you own a home or property investment it’s always best to be protected in case something unexpected happens.
All landlords need landlord insurance to protect against unexpected vacancies and other setbacks. Everyone who owns a home needs home and contents insurance to make sure that even if a natural disaster levels your home, or a thief steals all your stuff you can get on with life and take care of your family. If you’ve got a car or any other expensive asset that would be difficult to replace, you also need insurance.
Your insurance needs to be tailored to you and your family, your circumstances, your home and your assets. If you don’t have the right level of cover or the right kind of policy you might find that your insurance is close to useless when you need it most. Make sure that doesn’t happen and give the insurance experts here at Money Empire a call today.