Still a place for high LVR loans: Genworth

By webmaster

Lender's mortgage insurer Genworth Financial’s acting chief executive officer Paul Caputo has dismissed claims that the role of LMIs has been marginalised on the back of lower loan-to-value ratios (LVRs).

Mr Caputo revealed that the value proposition of LMIs was more compelling than ever, particularly in an economic climate of growing house price appreciation and rising interest rates that make affordability an increasing problem for First Home Buyers.

Rising funding costs have affected the banks’ propensity to lend to high risk borrowers, which has made the insurers ability to provide lenders and borrowers with access to 95 per cent loan to value (LTV) business even more valuable.

“High LVR loans definitely still have a place in the market,” he said.

“First home buyers are still very serious about owning their own home and thus require higher LVR loans.

“First time buyers account for approximately 30 per cent of our business at present, and they continue to perform very well. While the number of first time buyers coming into the market has dropped on the back of rising interest rates, it is still important for us to support this market.”

While the global financial crisis has taken its toll both locally and internationally, Mr Caputo said Genworth had no plans to tighten its LVR policies.

“We don’t expect to tighten policy. We will continue to provide lenders and borrowers with access to 95 per cent LVR business well into the future,” he said.

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%
Still a place for high LVR loans: Genworth
SPI logo