Starting a family

If you’re starting a family or have young kids a mortgage can be a big financial challenge.

The good news is that mortgage products have become fairly flexible, as long as you plan around them properly. We deal with lots of young professionals who are planning on starting a family, but whose large mortgage also means they rely on two incomes.

The key to starting a family is planning your finances in advance
  • You need to be able to cope on one income for up to 12 months. What will your monthly shortfall be?
  • Take into account your higher living costs once your partner goes back to work  – this will usually be around $1,500 extra a month.
  • Put all of your savings into the mortgage using revolving credit. Aim to repay enough so that you can cover at least 12 months of income shortfall. With revolving credit you can access the funds you pay off at any time.


Provided you own more than 20% of your home, you can also put your mortgage onto interest-only for a while. This will reduce repayments to cover any shortfall.

Life and health insurance

Make sure you have your life insurances properly sorted out (we can do that for you too). The risks are so much greater when you have dependents and are reliant on two incomes.

At an absolute minimum you should have enough life cover each to repay the mortgage. In reality you should also have some trauma cover to protect from big scary things like cancer. Income or mortgage protection insurance is a good idea too. With trauma cover you also get free cover for your kids aged between 3 and 18.

We recommend budgeting on between $100 and $160 per month for insurance.

Family assistance

You’ll get 12 weeks paid parental leave, and if your household is earning less than $80,000 while one of you is off work, you could be entitled to Working for Families benefits too.

With the right planning, you’ll be able to stress less about your finances so you spend your energy enjoying your new family.

We can help:

  • develop a personal mortgage plan specifically for you. This will help you plan your finances before starting a family. We can then review your plan every year to make sure you stay on track.
  • arrange life and health insurances so that you’re well covered, but not paying too much.