What happens if I can’t make my home loan repayments?


Life has its ups and downs. Good things can happen – starting a family, getting married or being promoted at work. Unfortunately, less welcome changes can occur – like illness or injury – that may leave you unable to make your home loan repayments.

The good news is you can do some things now to protect yourself from some of these key life events.
You can take out insurance to ensure you can continue to pay your home loan if you become ill or injured and unable to work.

Income protection insurance not only provides the confidence to meet your home loan repayments, but is an important consideration when taking on additional debt such as buying an investment property. By paying you a regular benefit to replace part of your income if something happens to you, income protection plays an important role in your long term plans to pay off your property.

There are other types of cover that you could consider:

  • Life insurance can protect your family in the event of your death, and help them meet ongoing obligations such as paying off the mortgage
  • Total and permanent disability insurance pays you a lump sum if you can’t work again due to illness or injury
  • Trauma insurance pays you a lump sum if you suffer a specified illness or injury.

You can also set up an emergency fund to tide you over when things go wrong.

If the worst happens and you don’t have insurance or an emergency fund, there are other options. You can: 

  • renegotiate your home loan – there may be ways you can reduce your repayments by switching to a different type of home loan
  • seek assistance from your lender due to financial hardship. All lenders must consider reasonable requests to alter the terms of your home loan where you suffer genuine hardship and where you feel that a change would enable you to meet your ongoing payment requirements
  • access your super – in some cases of severe hardship you may be granted early access to your retirement nest egg under strict conditions. Talk to your super provider.

Life has its ups and downs so it’s best to be prepared. A good first step is talking to AMP so you can set up a financial plan.


How much insurance do
you need?

There are many factors that can affect the level of cover you need. Our calculator can help you work out how much cover you may need.

Find out now

Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.