| Max Amount/LVR | - Loans for genuine home improvements are permitted to 95% of a revised (on-completion) valuation
- For all other purposes, max LVR of 90% is to apply
- When calculating Total Loan Limit, the Scheduled Amortised Balance on existing loans, plus the new loan are to be used
- When calculating LVR, the Scheduled Amortised Balance on existing loans, plus the new loan are to be used.
|
| Employment/Income | - As per section 4.1 Standard LMI Product Parameters.
|
| Credit History | - Existing loan must have been operating for at least 3 months
- Acceptable repayment history for at least the past 3 months
- Only one Additional Loan permitted within any 3 month period
- Where full monthly contractual repayments have not been made (eg Parenting Repayment Break), a written explanation is required.
|
| Loan Term | - For Standard LMI and HomeBuyer Plus proposals, the remaining loan term must not exceed 40 years
- For Low Doc and Family Pledge loans, the remaining loan term must not exceed 30 years.
|
| Valuation | - As per Valuation Requirements, section 5.9 Security Valuation.
Note: Where a Lender's revaluation of the security property results in normal lending guidelines not requiring mortgage insurance, and the existing loan is insured, the Lender may elect not to insure the Additional Loan, however, Genworth must be advised. In such circumstances, a separate loan account must be maintained for the Additional Loan, as it will not be covered in any subsequent claim. |
| Premium | Additional Advance where original loan insured by Genworth - At any time an additional advance is to be made to an existing loan, which is already insured with Genworth, the new premium will be calculated on the total exposure (Scheduled Amortised Balance amount plus Additional Loan amount) at the new LVR
- The premium amount/s previously paid on the existing insured loan, and any subsequent additional advances, will be deducted from the new premium amounts as a 'Premium Credit'
- Top Up loans on existing LMI policies will be allocated one policy which will now encompass the total loan exposure and will supersede any previous policies. This will negate the need to provide individual and separate policy numbers for Top Up loans in the future
- The original policy is superseded and replaced by the new Top Up loan policy.
Additional Advance where original loan NOT insured by Genworth - Additional advances to loans, which subsequently require mortgage insurance, where the existing loan is not already insured, will be treated as a new proposal for the total loan amount and the premium is calculated on the total of the Additional Loan plus the uninsured amortised loan limit.
|
| Other | - Where a Lender submits an Additional Loan and the new proposal is under a different product to the original proposal, the application can be considered under the new product, provided the application meets all policy requirements under the new product. Pricing will be calculated using the rate cards for the new product.
|