Helia Group enhances LMI for SMSF loans

Group is confident the enhancements will support the growth of the lending sector, chief commercial officer says

Helia Group enhances LMI for SMSF loans

Helia Group, which has been part of the Australian residential mortgage lending market for more than 55 years, has enhanced its lenders mortgage insurance (LMI) for self-managed super fund (SMSF) loans, to align to current housing market valuations and increase accessibility for investors.

Helia, formerly Genworth Mortgage Insurance Australia, said that with property now representing 25% of all Australian superannuation assets, changes around loan size limits, LVR limits, and liquid asset requirements have been launched to keep pace with the market and create more opportunities for investors.

“With SMSF property investment becoming more attractive to sophisticated investors who may now want to enter the property market earlier through their SMSF and incorporate property as part of a diversified investment strategy, we are confident these enhancements will continue to support the growth of that lending sector,” said Greg McAweeney (pictured above), Helia’s chief commercial officer.

Helia’s SMSF product has now been upgraded to include loans size limits of up to $1 million to accommodate current property values, LVR limits of up to 90% (including LMI premium capitalisation) to provide an option to retain additional funds, and liquid asset requirement of 5% of the total SMSF debts to support access to funds.

The changes are subject to eligibility criteria set by individual lenders offering SMSF loans.

“These enhancements reaffirm our purpose of accelerating financial wellbeing through homeownership as we remain focused on enhancing, evolving, and extending our offering to bring innovative and broader home and investment solutions to the market,” McAweeney said.

Early this year, Helia partnered with Habitat for Humanity Australia to produce sustainable housing for Australians. The tie-up sees the company providing financial contributions and staff volunteering to Habitat’s programs.

The LMI enhancements come following a Helia study released late last year which revealed that affordability remains the biggest barrier for aspiring homeowners, with saving a deposit coming in second.

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