5.2 Maximum LVRs

The 'Loan to Value Ration' (LVR) is one of the major elements of risk and is one of the vital considerations of any LMI proposal

• The LVR is the loan amount as a percentage of the purchase price or the security valuation amount, whichever is the lesser
• The maximum LVRs referred to in this Policy reflect the maximum ratios preferred by Genworth
• LVRs may vary by product, loan purpose and security location. Refer to section 4 Product Parameters and section 5.10 Loan Purpose for further details
• In the case of construction loans, the LVR is determined on the lesser of the cost (land value plus tender) or the on-completion valuation
• In the case of a refinance or an equity release, the LVR is the loan amount as a percentage of the valuation only.
• It should be noted that Genworth may choose to limit the LVR to be insured based on the individual merit of the proposal or the specific loan product.