| Additional Loan | An additional advance to an existing insured loan, against existing security, that is either added to the existing loan or maintained in a separate loan account (see also Top Up). |
| Base Loan Amount | The loan amount approved before adding the LMI premium charge. |
| Capitalisation | Refers to the ability to add the borrower’s cost of the LMI premium (including stamp duty on the LMI premium) to the Base Loan Amount and this total is then drawn out of their loan account. Borrowers avoid paying this fee up front and can amortise this payment over the term of their loan. |
| First Home Buyer/s | Borrowers purchasing an owner occupied property for the first time who qualify for the government’s First Home Owners Grant (FHOG). |
| Funding Program | An organisation that provides funding and credit criteria for the origination of mortgages by a third party. |
| High Net Worth Borrower | Borrowers with net surplus assets of greater than $500.000. |
| Lender | Those with a direct relationship with Genworth such as traditional Lenders and Funding Programs. Excludes mortgage managers and originators who generate loans though a Funding Program. |
| Loan to Value Ratio (LVR) | For a purchase or construction, the Loan to Value Ratio is calculated by dividing the Base Loan Amount by the lesser of the purchase price or the security valuation amount. For refinances, the LVR is usually based on the valuation amount only. |
| Net Disposable Income (NDI) | The net amount of income a borrower has available after payment of tax, existing commitments and family living expenses. |
| Premium Credit | For a Top Up application, Premium Credit is the total amount of any premium/s previously paid (less stamp duty) in respect of the existing insured loan/s for the same borrowers and the same security. |
| Scheduled Amortised Balance | The loan amount that would have been outstanding if the minimum repayment under the loan contract had been made on the due dates. |
| Self-Employed Borrowers | For LMI purposes, an individual is considered Self-Employed when they receive the majority (ie more than 50%) of their total income from a business in which they are the sole trader, a partner, director or shareholder. |
| Top Up | A further advance to an existing insured loan that is either added to the existing loan or maintained in a separate loan account (see also Additional Loan). |