Home News Share prices of Genworth mortgage surge as delinquencies rise in mining areas

Share prices of Genworth mortgage surge as delinquencies rise in mining areas

Font size :

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.”

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Aug 17, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords