Genworth, one of Australia's leading providers of lenders mortgage insurance (LMI), has increased its reserves by $47.1 million in the third quarter of 2020 (three months to September 30).

This is an increase of 25% to $82.5 million since the onset of COVID-19 in Australia. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
Principal & Interest
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

As at September 30, Genworth had over 31,000 active repayment deferrals from lenders, and reported many loans may be expected to experience difficulty following the end of deferral periods. 

Genworth chief executive and managing director Pauline Blight-Johnston said the COVID-19 environment is creating a high degree of uncertainty, but praised the effectiveness of this year's various government and bank support packages.

“We continue to support the repayment deferral programs, government job support packages and legal moratoriums that are assisting Australians at this time of need,” Ms Blight-Johnston said. 

“These programs are beneficial for the economy and Genworth’s business. They are delaying the development and progression of delinquencies and claims, providing Australians with some respite and time to recover.

"They do, however, reduce our visibility of anticipated ­future claims outcomes.”

Ms Blight-Johnston said Genworth has increased its reserving to compensate for this extra risk, and that Genworth still has a strong capital buffer to navigate future mortgage challenges. 

"We understand how important it is for us to play our part in the nation's rebuilding program, by continuing to support our customers, their borrowers and the broader community," she said. 

"Whilst there are initial signs of economic recovery, the lockdown in Victoria and continuing border closures in some states demonstrate that the impact of the pandemic still has a while to play out, so there remains considerable uncertainty about the ultimate impact on Australian borrowers and on Genworth's claims outcomes. 

"We will keep working together with our lender customers through this difficult and uncertain period, and beyond, to support Australian borrowers, helping as many people as possible to realise the dream of home ownership and stay in their home wherever possible."

Still a lot of mortgages in deferral 

Despite the original six-month mortgage deferral period ending, many home loan repayments are still frozen, based on recent big bank data:

Each of these figures from the biggest banks are above the benchmark set by the Reserve Bank, which recently predicted that just 15% of deferred mortgage customers would struggle to resume repayments.

What's worse is those with higher LVRs, mainly those above 90, are disproportionately affected by current mortgage deferrals compared to the overall home loan market, which presents a potential problem for LMI providers like Genworth. 

Over the September quarter, new insurance written was up 22% to $7.8 billion. 

See also: Have a mortgage deferral? Here's how your lender is expected to help when it ends

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