Lenders Mortgage Insurance FAQs

Achieving the dream of home ownership is one of the most exciting accomplishments in life. It is also one of the largest investment you may ever make.

Lenders Mortgage Insurance (LMI) is one option that allows you to get into your dream home sooner. Over 2 million Australians have used LMI as an enabler to assist entry into the property market.

What is LMI? More/Close

LMI allows you to borrow up to 95% of the purchase price of your property, which requires you to put less money into the deposit on your loan. For more information on LMI, click here.

Who is insured? More/Close

It is actually your lender, not you or any guarantor, who is covered by LMI. LMI should not be mistaken for Mortgage Protection Insurance, which is personal insurance to cover your mortgage repayments in the event of death, sickness, unemployment or disability.

What type of loans do you insure? More/Close

Genworth will provide LMI for most residential mortgage loans. Your lender will have full details on the types of loans we insure.

How do I get LMI? More/Close

Your lender is your sole point of contact for LMI. Your lender will advise you if your loan requires LMI and will prepare all the necessary documentation on your behalf. To qualify, your lender will check that you are able to meet regular mortgage repayments, and that your property meets the Genworth Underwriting Policy.

What costs are involved? More/Close

Unlike traditional insurance products, LMI is a once only premium payable at loan settlement and provides cover for the full term of the loan. The premium will vary depending on how much money you are borrowing, the size of your deposit and the type of loan product you choose. To reduce your upfront costs it may be possible to add your LMI Premium on to your total loan amount. Please ask your lender if this is available.

Are GST and Stamp Duty payable? More/Close

Yes. GST is payable on all LMI premiums, and stamp duty subject to State Government regulations. These amounts will be included in the total premium quoted by your lender.

Is the premium refundable if the loan is repaid early? More/Close

It depends on the circumstances - your lender can advise whether a partial refund of the insurance premium is applicable in your case.

What do I do if my circumstances change and I can't make my mortgage repayments? More/Close

If you are experiencing financial difficulties, contact your lender immediately. It is in the interests of your lender and Genworth to work with you to determine a viable solution that keeps you in your home.

When is the right time to buy? More/Close

The question being asked by many Australian's across the country: do I buy a house now, or should I wait and save more? Click here to access Genworth's Buy Now or Wait and Save Tool, to see if buying now makes sense for you.