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  • Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Hi All

    Thought this might interest everyone and shows why it is imperative to structure your investment lending correctly.

    Effective Saturday 31 August 2013, Genworth will apply the following additional loadings;

    For borrowers or guarantors who are self employed, a premium loading of 10% will apply

    For loans secured by investment property/ies only, a premium loading of 12.5% will apply. Note: Applies to new loans and top-ups

    For loans secured by both an owner-occupied property and an investment property, a 12.5% loader will only apply in instances where the investment property is the higher valued security. Note: Applies to new loans and top-ups

    The following existing loadings continue to apply, in addition to the new loadings:

    For loans with a purpose other than, purchase, construction or bona-fide home improvements, a premium loading of 5% will continue to apply.

    For loans with a home improvement or renovation purpose, if the loan funds are released to the borrower.

    Genworth treats this as an equity release/cash-out and therefore a premium loading of 5% will continue to apply.

    Loadings will be cumulative. That is, more than one loading may apply to a loan and the premium calculation will factor in the total of the relevant loadings.

    Wonder how long it will be before QBE follows suit.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    It's crazy – I'm sure they're already making a killing on their current premiums.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Agree Jamie but be surprised how many of the big 4 wont be telling their clients they are paying thru the nose for their financing and could do better elsewhere.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    Great :(. I'm surprised self employed people only got 10%

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
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    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of PLCPLC
    Participant
    @plc
    Join Date: 2012
    Post Count: 400

    You would think that these "loadings" would in Genworth's eyes be due to the attributed risks with their respective classifications. I can understand self employed, but investment properties, cash out and debt consolidation (considering max LVR is 90%), surely the risks of default isn't that much higher to substantiate the premium increase?

    All this does is makes it harder for people to borrow close to the maximum LVR limits as borrowers generally cap their LMI and lenders generally have a limit of the LMI that they will allow capped.

    Cheers

    Tom

    PLC | Phoenix Loan Consulting
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    Melbourne based Mortgage Broker | Making Finance Simple

    Profile photo of HomeLoanExpertsHomeLoanExperts
    Participant
    @homeloanexperts
    Join Date: 2007
    Post Count: 43

    Yeah guys we are going the same direction as Genworth in other countries.

    Check out Genworth's premium rate card for the USA and you will see what I mean.

    Both mortgage insurers are having problems with capital allocation. They both want to limit the amount they are underwriting but they just can't do it when they have big banks on their books who have DUA and are trying to write a ton of business. So instead they are doing little tweaks to policy, playing with credit scoring and of course loading premiums.

    Profile photo of albertwilliamalbertwilliam
    Participant
    @albertwilliam
    Join Date: 2013
    Post Count: 1

    Is it true purchase, construction or bona-fide home improvements, a premium loading of 5% i just can't believe this?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Hate to say Albert bang on.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

Viewing 8 posts - 1 through 8 (of 8 total)

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