Genworth Mortgage Insurance Australia is a lender’s mortgage program that assists homebuyers who have less than a 20% deposit.

Australian borrowers are taking out home loans with smaller deposits — figures from the Australian Prudential Regulation Authority (APRA) show that the share of new loans with a loan-to-value ratio (LVR) above 80% increased from 20.3% to 21.5% in June quarter. 31.8 percent of high-LVR mortgages involved loans with lower deposits than 10%.

Lenders will charge additional fees to cover LMI for LVRs greater than 80%. In other words, borrowers who have less than 20% deposit will need to pay a premium to protect lenders in the event of default.

Genworth has announced a new LMI premium monthly offer, which will allow borrowers greater flexibility.

Borrowers have the option of not capitalizing the premium in their loan, as they do with the upfront premium product, or paying the full LMI premium all at once. Instead, they can pay the LMI  premium in instalments over time, which means a greater portion of their loan can be utilised to support the purchase of their first home,” Genworth CEO and managing director Georgette Nicholas said.

Each borrower’s unique circumstances will be considered when deciding whether to get an interest-only or principal and interest mortgage.

“Importantly, our new monthly premium LMI provides borrowers with the flexibility to refinance at a later date without  the need for a refund of LMI premium, and lenders with the option of structuring this offering to enable borrowers to  cease paying the LMI premium when their loan achieves a certain loan-to-value ratio,” Nicholas said.

The monthly LMI premium product covers the loan until it reaches a pre-agreed LVR. This is one of the major differences. The monthly LMI premium protects the loan up to a pre-agreed LVR. This is usually set at 75%.


Premium Upfront LMI Product

Monthly LMI Premium Products

Premium Payments

Premium Capitalization (included as part of loan amount

Policy / Risk Duration




A one-time premium must be paid upfront when the loan is taken out.

Monthly premiums will be charged for your insurance coverage.

LVR limits apply for the Borrower Option

Premiums cannot be capitalized on loans so the LVR doesn’t take them into consideration. However, the cost of the monthly premium is considered in determining the borrower’s ability to service the loan

The average age is around 30 years.

The loan will be repaid if it reaches a pre-agreed LVR (e.g. 75% LVR)

Top-up Loans can be revalued with credit for premium already paid.

To reflect any changes to the terms of the loan, the monthly premiums for top up loans are adjusted.

Lenders have the choice of choosing a schedule for refund (e.g.
40% Year 1, 20% Years 2

Refund not applicable – payment of LMI premium ceases once LVR reaches agreed LVR level or is refinanced