LMI FAQs

We have put together some Q&As that might answer some common questions regarding LMI.

How are LMI premiums calculated? More/Close

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? More/Close

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? More/Close

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? More/Close

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? More/Close

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/lender-resource-centre

What does capitalisation mean? More/Close

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? More/Close

Contact your Genworth Sales Manager, or alternatively email us at infoau@genworth.com