Property ownership. Protecting the Great Aussie Dream

Tagged in:

01 January 2019

Couple packing

Homeownership. It’s the great Australian dream.

For many of us, owning your own place, is a dream that still comes true. A place to call home and create memories. But unless you’re incredibly fortunate, buying your own home means a considerable debt – probably the biggest debt of your life. 

And, unless it’s managed correctly, that debt has the potential to turn the Great Aussie Dream into the Great Aussie Nightmare.

Understanding your debt

In 2018, the average first-home buyer loan was $345,8001. Compare it to an average annual salary of almost $86,0002  and the scale of that debt becomes clear.

Of course, it’s a productive debt so you should earn capital gains over time, and when repaid over 20, 25 or 30 years is less daunting and manageable.

However, your ability to keep your family’s home depends entirely on your ability to pay your mortgage.

And that is not always as straightforward as it may seem.

So what happens if something goes wrong?

A serious injury or illness that prevents you working may immediately compromise that ability, while death would, obviously, make it difficult for your partner to keep up the repayments.

It’s a scenario that isn’t beyond the realms of possibility, yet only 22% of Australians have personal life insurance3, while only 12% take out income protection4

Unsurprisingly, purchasing life insurance is often triggered by major life events - with buying a home only second behind having children5 as the main trigger.

Life Insurance and associated income protection insurance, total permanent disability (TPD) insurance and critical illness cover may be able to cover the costs of your mortgage in full, should the worst happen.

When you have dependents too, the need to ensure their lifestyle and futures are as protected as possible. 

Think you’re OK with life insurance in super?

Seventy per cent of all life insurance policies are held within superannuation funds6. However, research has also shown that the median level of life cover held meets only 37% of the needs of Australian families with children7, meaning you and your family might face serious financial difficulties should you not be able to work – or if you are no longer around.

That’s why it’s a good idea to check in regularly with your financial adviser to ensure your levels of cover are appropriate for your current situation. It could prevent your dream turning into the ultimate nightmare. Making sure you have the right cover in place can help you enjoy the dream – with one less thing to worry about.


  3. Pure Profile Insurance Report 2017
  4. Pure Profile Insurance Report 2017


These pages contain general information only and do not take into account your personal circumstances, objectives or needs. This information is provided in good faith and believed to be accurate at the time it was placed on the MLC Life Insurance website, however we make no representation or warranty as to the reliability, accuracy or completeness of this information.

The information provided is not intended to constitute financial, legal or medical advice, or to substitute for the need to consult with your advisers or treating practitioners. Before acting on any information in these pages, you should consider whether it is right for you and consult with your financial, legal and/or medical advisers.

Any views or opinions expressed or referenced here (including in any video content) or in any webpages to which hyperlinks are provided do not represent the opinion of MLC Limited, unless we say otherwise.


MLC Life Insurance

Articles from MLC Life Insurance

Related Articles