7.4 Easy Add On
Genworth has streamlined this service to make the process easier for both Lenders and borrowers.
The following criteria must be met in order to qualify for this streamlined process:
| Feature | Parameters (Summary) |
| Max Amount/LVR | - Maximum loan (top up) amount is limited to $100,000
- Maximum LVR of 90% or product limit, whichever is lesser
- 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.
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| Employment/Income | - Asset and Liability statement is required
- All borrowers must sign a “no diminution in financial position” declaration form as approved by Genworth
- Employment information and income types must meet standard Genworth parameters
- Serviceability must meet Genworth policy unless an alternative agreement is in place
- Lender will verify PAYG employment and income by either obtaining the most recent payslip or by phoning the employer and keeping a signed telephone enquiry record on their files. In circumstances where PAYG employment has changed since original insured loan or the latest additional insured loan, standard employment and income policies are to apply including verification of income
- For Self-Employed Borrowers, most recent Self-Employed financials are required unless the most recent financials have already been provided for original insured loan or the latest additional insured loan.
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| Credit History | - Existing loan must have been operating for at least 3 months
- Acceptable repayment history for at least the past 3 months
- Where full monthly contractual repayments have not been made (eg Parenting Repayment Break), a written explanation is required
- No Credit Bureau checks are required.
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| Maximum Borrower Exposure | - Current Genworth exposure must be less than $500,000 per borrower.
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| Valuation | - As per Valuation Requirements, section 5.9 Security Valuation.
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| Premium | Additional Advance where the original loan is 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.
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| Other | - Existing loan must be insured by Genworth.
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