Genworth Mortgage Insurance Australia shares jumped seven per cent to $3.10 yesterday as underlying profit beat expectations and the company suggested more special dividends could be on the way. It also posted a spike in its loss ratio to 33 per cent for the first six months of the year. 

The delinquency rate also inched three basis points higher to 0.43 per cent as the company flagged more home loan delinquencies in mining and regional areas.

“We’re anticipating there could be more pressure in those areas and so did try to get a little bit ahead of what might happen from an expectation that there may be more claims and a higher level of severity,” said Genworth chief Georgette Nicholas.

She pointed out that the stress in Genworth’s portfolio was being driven by regional areas in the mining-exposed states of Western Australia and Queensland.

“Brisbane, Perth, the metropolitan areas--they certainly are still performing relatively well. It’s really those pockets in some of the surrounding areas and a lot of them are transitioning through the market phase,” Nicholas said. “So, that’s generating underemployment and also a period of time for those borrowers to get back on their feet. We are seeing an extension of time that it’s taking for those borrowers to either sell their home or to actually restructure their loan.”

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan