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A free resource to help investors understand lender's mortgage insurance (LMI) has been made available online by Genworth.
Chief commercial officer of Genworth Australia Bridget Sakr said the industry-first ‘toolkit’ is designed to educate borrowers about LMI and the possibilities it presents.
“Recent independent research commissioned by Genworth showed that one in three first home buyers believed they need at least a 20 per cent deposit to purchase their first home,” Ms Sakr told Smart Property Investment's sister publication, The Adviser.
“This suggests many prospective first home buyers are not aware of LMI, or do not understand how it works."
LMI allows borrowers to take out a mortgage with a loan-to-value ratio (LVR) above 80 per cent.
“Genworth hopes the free LMI toolkit may be useful for all relevant parties around the property buying cycle to better communicate the concept of LMI and its value proposition to interested parties,” Ms Sakr said.
The Genworth initiative, which features a series of apps, videos, case studies and webinars, was launched yesterday.
The website has information on how LMI may impact on an investor's portfolio, as well as information for owner occupiers, mortgage brokers and lenders.
“This multimedia knowledge hub is a dynamic resource and will be regularly updated with new material, content and tools, including short video clips designed specifically for the site,” Ms Sakr said.