Yeah, we've got more than enough life insurance to cover ours with loads left over, but a lot of people don't have life insurance and it blows my mind that they don't. Or they just have funeral cover which is great to pay for your funeral, but doesn't cover a large mortgage.
I don't have funeral cover or life insurance. But at the moment there is just me and a couple of dependent pets! I also own my home and have no other debt. I figure I am gone, no one gets any big bills - there's enough dough in the bank to bury me in a simple box. When I do get married and most definitely when I have children, that will change.
I reckon in the Melbourne south and eastern inner city and inner suburbs (say within 12kms of the CBD) the average mortgage would be up around the $800K mark. When you consider that you can't get a house (even a small 2 bedder) in most of these suburbs for under $1 million I think there would also be a lot of people with a lot higher mortgages too. But, chances are they're earning the big bucks so can service those sort of mortgages.
I reckon around where we live it's 400-500. Houses are worth much much more, but it's been a growth area. A lot of people bought 10+ years ago and their homes have gained a lot of value.
We fit the 3 x combined income model when I'm working, but because I'm not currently, it's more like 4.5 times. So things are tight, but we think it's worth it to have me home with the kiddlies.
I hate seeing people take on huge mortgages just because they can, then whingeing about them later.
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