Marketplace

Genworth contributes to the marketplace by generating economic value, supporting the Australian residential mortgage market, facilitating competition in the sector and supporting innovation and collaboration with other market participants

Supporting the Australian residential mortgage market

Genworth has been operating in the Australian residential mortgage market for more than 55 years. Our business model is designed to provide capital support, reduce risk exposures and deliver underwriting and loss mitigation services that help our lender customers maintain quality residential lending standards. We work with our lender customers, regulators and policy leaders to promote a stronger and more sustainable housing market in Australia.

Our insurance policies protect our lender customers against the risk of financial loss in the event of default by a borrower/home buyer. Our Lenders Mortgage Insurance offering is typically taken out by lender customers to cover 100% of the risk of loss on high loan-to-value ratio loans. Our policies therefore assist our lender customers to manage the risk of significant losses, including catastrophic economic events or scenarios. By facilitating a greater spread of risk and diversification of lenders exposures we help support the financial stability of the Australian market.

 

Facilitation of competition 

Competition between lenders provides choice and innovation for borrowers and assists affordability. Genworth supports a broad range of lenders in the Australian market including banks, mutuals, building societies, credit unions and many smaller and regional based lenders as well as fintechs and non‑ADIs (authorised deposit taking institutions).

Our risk and capital management solutions enable smaller lenders and regional lenders to reduce the amount of risk they carry on their balance sheets and lowers the level of capital they are required to hold against their home loans.

By helping a greater range of lenders to operate in the Australian residential mortgage market, Genworth helps promote competition and assists in a greater choice of lenders being available to home buyers.

Related documents and information

What is LMI?

Information about Lenders Mortgage Insurance