- As a means of regulating the level of acceptable LMI risk, Genworth Financial has preferred maximum loan amounts.
- Loan amount limits apply on a “per security” basis.
- Loan amount limits may vary by product, loan purpose or security location. Refer to Product Parameters Section 4 and Loan Purpose Section 5.10 for further details.
- It should be noted that Genworth Financial may choose to limit the loan amount to be insured based on the individual merit of the proposal or the specific loan product.
5.1.1 MULTIPLE SECURITIES
- For proposals with multiple securities, the following approach is used to calculate the Maximum Loan Amounts available:
Example as per below.
» Locate security category using ‘Security Location Guide’ - (Column 1)
» Total the Security Value - (Column 2)
» Using the appropriate ‘Maximum LVR and Loan Amounts’ table for the product, locate the maximum LVR (Column 3) - example below is based on Standard LMI.
» Calculate and total the Maximum Loan Amount available (Column 4) based on Security Value (Column 2).
» Verify that the Maximum Loan Amount (Column 4) does not exceed the amount shown in the Maximum LVR and Loan Amounts table (see shaded section below)
» Maximum Loan Amount available for this example is $855,000
|
(1)
SECURITY
|
(2)
SECURITY VALUE
|
(3)
MAX LVR
|
(4)
MAXIMUM LOAN AMOUNT
|
|
Security A - Category 1
|
$500,000
|
95%
|
$475,000
|
|
Security B – Category 2
|
$400,000
|
95%
|
$380,000
|
|
Total
|
$900,000
|
95%
|
$855,000
|
|
MAXIMUM LVR & LOAN AMOUNTS
|
|
Property Type
|
LVR
|
Category 1
|
Category 2
|
Category 3
|
All Other
|
|
House/Unit
|
0 – 80%
|
$1,000,000
|
$750,000
|
$500,000
|
On Application
|
|
80.01 – 90%
|
$850,000
|
$600,000
|
$450,000
|
On Application
|
|
90.01 – 95%
|
$750,000
|
$500,000
|
$350,000
|
On Application
|
| Vacant Land
|
0 - 90%
|
$600,000
|
$400,000
|
$200,000
|
On Application
|
|
90.01 – 95%
|
$550,000
|
N/A
|
N/A
|
N/A
|
|
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