We have put together some Q&As that might answer some common questions regarding LMI.
How are LMI premiums calculated?
The LMI Premium is based on the loan-to-value ratio (LVR) of a particular application, with lower LVRs attracting a lower premium.
Is Stamp Duty and GST payable?
Stamp Duty and GST are added to the premium as additional charges, depending on the state of the security property.
Do first home buyers receive a discount?
Yes, typically First Home Buyers who are eligible for the First Home Owners Grant will be able to take advantage of a discounted premium.
How can I calculate the premium payable?
Consult your rate card, lender or funder for precise information regarding premium rates. A basic premium calculator is provided on our website, which also highlights the monthly cost should a borrower opt to capitalise their premium.
Do you have a servicing calculator?
Yes, Genworth has a range of options to suit your needs. An interactive servicing calculator is available here, as is a downloadable excel version for use when not connected to the internet. Also available is a wireless servicing calculator for use on your blackberry or portable device which can quickly and easily give you the information you need while out of the office. Visit www.genworth.com.au/wireless
What does capitalisation mean?
Most borrowers have the option to 'capitalise' their premium if they wish, which according to the Mortgage Trends Report is taken by over 60% of borrowers. This means that the premium is absorbed into the loan amount and the borrower does not have to pay for the premium as a 'lump sum' additional cost at the time of purchase.
Where do I go if I have questions?
Contact your Genworth Sales Manager, or alternatively email us at infoau@genworth.com
|
