Mortgage protection insurance
Your home is often your biggest commitment. Mortgage protection makes sure the repayments keep getting paid if you can’t work.
Mortgage protection, also called mortgage repayment cover, pays a monthly amount towards your mortgage or rent if illness or injury stops you working. It’s often simpler and more affordable than full income protection, but it only covers housing costs. In New Zealand, the term is also sometimes used for life cover sized to pay off a mortgage.
Reviewed by Kyle Hasson, Insurance and KiwiSaver Adviser (FSP1010252) · Updated October 2026
How we help
- Protect your home first: a practical starting point on a tight budget.
- Set it up with your loan: so you’re covered from settlement day.
- Combine it sensibly: with income protection, life and trauma cover.
- Work with your mortgage adviser: our insurance and mortgage advisers work side by side.
Mortgage protection or income protection?
| Mortgage protection | Income protection | |
|---|---|---|
| Pays towards | Mortgage or rent | Your income generally |
| Benefit based on | Your repayments | Your income |
| Cost | Usually lower | Usually higher |
| Often suits | First-home buyers protecting the house first | Households needing all bills covered |
Two meanings, one name
Some people use “mortgage protection” to mean life insurance that pays off the mortgage if you die. Others mean monthly repayment cover if you can’t work. We’ll make sure you know exactly what you’re getting, and whether you need one, the other, or both.
Bank cover versus specialist insurers
Banks often offer their own mortgage insurance when you take out a loan. It can be convenient, but specialist insurers may offer more options. It’s worth comparing before you sign up, and you don’t have to insure with your lender.
How much does mortgage protection pay?
You choose a monthly amount to cover your mortgage repayments, or rent if you’re renting. If you can’t work because of illness or injury, it pays that amount each month after your waiting period. Policies commonly pay for two or five years, or until a set age.
A big advantage over income protection: with the specialist policies we compare, cover up to about $7,500 a month is usually paid in full, even if you’re also receiving ACC or other income. Income protection, by contrast, usually reduces your payment by ACC and other benefits.
Cover that keeps up with your mortgage
Some policies let you increase your cover without new health questions when your mortgage goes up, you buy a new home, interest rates rise or your rent increases. Limits and age cut-offs vary by insurer, so it’s worth setting this up with the right policy from the start.
Partial disability and returning to work
If you can go back to work part-time while you recover, many mortgage protection policies pay a part-benefit based on the hours you can’t work. It helps you ease back in without falling behind on your mortgage.
Built-in extras
- Recurring claims: no new waiting period if the same condition returns within 12 months.
- Rehabilitation support: help with approved programmes and equipment.
- Pausing cover: some policies let you suspend cover and premiums for up to 12 months during parental leave or a drop in income.
Setting it up with your home loan in South Auckland
Most of the families we work with in Papakura, Takanini, Drury and Pukekohe set up mortgage protection when they buy their first home or refinance. Arranging it alongside your loan means you’re covered from settlement day. Because our mortgage and insurance advisers work side by side, we can line up your cover with your loan structure. Read our guide to protecting your mortgage for the full picture.
Kyle Hasson is an Insurance and KiwiSaver Adviser at Moneyplant in Papakura (FSP1010252), with a New Zealand Certificate in Financial Services (Level 5). Meet the team
This is general information only and isn’t personalised financial advice. Everyone’s situation is different, so please talk to one of our advisers before making decisions about your insurance.
Mortgage protection questions
Can’t see your question? Give us a call or send us a message. See our public disclosure for details of our fees and commissions.
Does my bank’s mortgage insurance cover me?
It may, but bank cover can have fewer options than specialist insurers. It’s worth comparing, and you’re free to insure elsewhere.
Can I have both mortgage protection and income protection?
Yes. Many families combine them. Insurers usually limit the total to a share of your income, so they’re best set up together.
Does mortgage protection cover rent?
Many policies can cover rent as well as mortgage repayments.
When should I set up mortgage protection?
Ideally alongside your new mortgage, so your home is protected from settlement day.
How long does mortgage protection pay for?
It pays until you can return to work or your benefit period ends. Common benefit periods are two years or five years, and some policies run to age 65.
Does mortgage protection pay if I lose my job?
No. Mortgage protection pays when illness or injury stops you working. It doesn’t cover redundancy, although some policies let you pause cover if you lose your job.
Can I get mortgage protection and ACC at the same time?
Yes. With the specialist policies we compare, cover up to about $7,500 a month is usually paid in full even if ACC is also paying you.
What happens to my cover if I refinance or move house?
Specialist mortgage protection belongs to you, not your bank, so it stays in place when you refinance or move. You can usually increase it if your mortgage grows.
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