8.2 Policy Variations
During the term of an insured loan, circumstances may change and a borrower may seek to vary certain aspects of the loan by way of additional borrowings, an extended term, or even a change to the security property. In any of these events, Genworth has documented requirements, such as:
8.2.1 Top Up (Additional Loan)
Genworth provides Top Up cover for existing insured loans for a variety of loan purposes. It should be noted that in any case where Additional Loan funds are advanced direct to the borrower, regardless of the stated loan purpose, this will be regarded as an Equity Release by Genworth and an increased premium rate will apply.
In all cases a new LMI proposal must be submitted to Genworth. Refer to section 7.3 Loan Increases (Top Ups) and Additional Loans for further information.
8.2.2 Extension of Loan/Policy Term
At any time during the term of an insured loan, Genworth will consider extending the term of the LMI policy up to a maximum 40 years from commencement, subject to a review of the loan performance and the borrower’s personal circumstances. Where the total loan term exceeds 30 years, an increased premium may apply.
Refer to section 4 Product Parameters for maximum loan terms. An LMI Variation Request form must be submitted to Genworth.
8.2.3 Substitution of Security
Where a borrower proposes to sell an existing security property, and replace it with another of similar or higher value, Genworth will consider a "Substitution of Security" in respect of the existing LMI policy, subject to the requirements set out in section 7.1.1 of the Genworth Underwriting Policy.
An LMI Variation Request form must be submitted to Genworth.
8.2.4 Partial Release of Security
Where an insured loan is secured by mortgage over more than one property, and one or more of the securities is to be sold, Genworth will consider a variation to the LMI policy subject to the requirements set out in section 7.1.2 of the Genworth Underwriting Policy.
An LMI Variation Request form must be submitted to Genworth.
8.2.5 Change in Borrower/Mortgagor
In any case where there is a request to change any of the mortgagor/s or borrower/s, Genworth will consider the circumstances and re-assess the risk based on the remaining borrower/s’ capacity to service the debt.
An LMI Variation Request form must be submitted to Genworth.