LMI Provider Differences: Genworth vs QBE 2026 Pricing

Introduction

Australian mortgage borrowers with deposits below 20 per cent face lenders mortgage insurance (LMI) costs that vary materially depending on whether their lender uses Genworth or QBE as the insurer. The two providers dominate the Australian LMI market and, in 2026, their pricing diverges more sharply than in recent years, driven by differences in underwriting appetite, capital relief strategies and competitive positioning. This article sets out a granular comparison of Genworth and QBE 2026 premium schedules, the regulatory backdrop supplied by the Australian Prudential Regulation Authority (APRA), and the pass‑through cost implications for borrowers. The information is compiled from publicly available rate filings, APRA prudential standards and Treasury scheme documents; no personal financial advice is offered.

LMI pricing structure and key determinants

LMI premiums are expressed as a percentage of the total loan amount and escalate with the loan‑to‑valuation ratio (LVR). For a standard owner‑occupied, full‑documentation home loan in 2026, premiums typically range from 0.20 per cent of the loan amount at LVR 80.01 per cent–85 per cent up to 5.00 per cent or more for LVRs above 95 per cent, depending on the insurer and loan size.

The premium a borrower pays is a function of five principal variables: the LVR band, the total loan size, the debt‑to‑income (DTI) ratio, whether the security is a house or an apartment, and whether the loan is for a first home buyer or an investor. Insurers also apply loadings for loans with interest‑only periods, non‑standard employment or credit‑impaired borrowers. APRA’s Prudential Practice Guide APG 223 Residential Mortgage Lending (APRA APG 223) reinforces that lenders must hold LMI from an acceptable provider to obtain favourable capital treatment on high‑LVR exposures; both Genworth and QBE satisfy that requirement, but the capital discount each affords to a lender under APRA’s standardised credit‑risk framework can influence which insurer a lender selects and, consequently, the price offered to the borrower.

Because LMI is a one‑off premium, it is often capitalised into the loan. A capitalised premium increases the loan principal, attracting interest for the life of the facility. The effective cost to a borrower therefore grows with the loan term, making even small differences in the premium rate meaningful over a 25‑ or 30‑year mortgage.

Genworth 2026 premium schedule

Genworth holds the larger market share, insuring approximately 55 per cent of high‑LVR loans in Australia, and its 2026 rate card reflects a continuation of a risk‑based stepped structure that was last revised in mid‑2025. For prime full‑documentation loans of $500,000 or less, Genworth’s indicative premiums are:

• LVR 80.01%–85%: 0.45% of loan amount (capped at $1 million loan size)
• LVR 85.01%–90%: 1.10%
• LVR 90.01%–95%: 2.35%
• LVR 95.01%–97%: 3.80% (maximum LVR 97% for most owner‑occupier loans)

These percentages apply to the gross loan amount before capitalisation and exclude stamp duty on the premium, which is levied by state governments. For loans between $500,000 and $1 million, Genworth applies a 10‑basis‑point surcharge on each band; above $1 million, a further 15‑basis‑point uplift operates. A borrower with a $750,000 loan at 90 per cent LVR would therefore pay a premium of approximately 2.45 per cent of $750,000, or $18,375, before stamp duty.

First‑home buyer concessions exist under Genworth’s pricing. Qualifying borrowers with a Family Home Guarantee or similar government‑backed product pay a reduced rate, typically 0.30–0.80 per cent depending on the LVR, because the Commonwealth’s guarantee absorbs a portion of the risk. However, for standard market borrowers without a government guarantee, the rates above apply.

QBE 2026 premium schedule

QBE has actively grown its Australian LMI book since 2023 and now commands roughly 35 per cent of new business. Its 2026 tariff is designed to undercut Genworth at the top of the LVR spectrum, where claims experience has been better than modelled, while maintaining parity in lower‑risk bands. QBE’s indicative rates for loans up to $500,000 are:

• LVR 80.01%–85%: 0.45% (identical to Genworth)
• LVR 85.01%–90%: 1.00% (10 basis points cheaper)
• LVR 90.01%–95%: 2.00% (35 basis points cheaper)
• LVR 95.01%–97%: 3.40% (40 basis points cheaper)

For the $750,000, 90 per cent LVR loan example, the QBE premium would be roughly 2.10 per cent of $750,000, or $15,750, saving the borrower $2,625 compared with Genworth. QBE’s surcharge structure differs: it applies a flat 5‑basis‑point loading for loans between $500,000 and $1 million and a further 10‑basis‑point loading above $1 million, making QBE progressively more attractive for larger high‑LVR loans.

QBE also offers a streamlined premium refund policy. Where a loan is refinanced within two years and the original LMI was placed with QBE, a partial refund of up to 40 per cent of the original premium is available, a feature Genworth has not matched. This can materially alter the effective cost for borrowers who anticipate refinancing in the near term.

Impact of APRA capital requirements on pricing

APRA’s Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APRA APS 112) permits an authorised deposit‑taking institution (ADI) to reduce the risk weight on a residential mortgage from 35 per cent to as low as 20 per cent when the loan is protected by LMI from an eligible provider. The capital saving is significant: for a $500,000 loan at standard 35 per cent risk weight, an ADI must hold $17,500 in common equity tier‑1 capital (assuming an 8 per cent minimum capital ratio). With LMI reducing the risk weight to 20 per cent, the capital charge falls to $8,000, freeing $9,500 in capital. This economic benefit flows through to lenders’ willingness to pay LMI premiums and to the competitive dynamics between insurers.

APRA’s quarterly Authorised Deposit‑taking Institution Property Exposures statistics (APRA Quarterly ADI Property Exposures) show that, as of December 2025, high‑LVR loans (greater than 80 per cent LVR) accounted for 14.7 per cent of new owner‑occupier lending, and 91 per cent of those loans carried LMI from Genworth or QBE. The data confirm that lender choice of insurer is influenced not only by the absolute premium cost but by the operational ease of capital relief reporting and claims history. Genworth’s longer claims data set gives some lenders comfort in the event of a housing downturn, while QBE’s aggressive pricing attracts lenders seeking to minimise up‑front costs and offer sharper rates to their borrowers.

Cost pass‑through to borrowers

The gross premium is not the only cost metric that matters. When a borrower capitalises the LMI premium, the increase in the loan principal generates additional interest over the life of the loan. Using the $750,000, 90 per cent LVR example, a capitalised Genworth premium of $18,375 at a 6.00 per cent annual interest rate over 30 years adds approximately $21,100 in extra interest, making the total LMI‑related cost roughly $39,475 in nominal terms. The equivalent QBE scenario, with a $15,750 premium, generates about $18,100 in additional interest, bringing the total nominal cost to $33,850 — a saving of $5,625 over the life of the loan.

Borrowers who can pay the LMI premium upfront avoid capitalisation interest entirely, a benefit that is proportionally larger when the premium itself is lower. Because QBE’s premium is lower in the highest LVR bands, the option to pay upfront is more accessible for borrowers with limited post‑settlement cash reserves.

LMI is not mortgage protection insurance and provides no benefit to the borrower; the policy solely indemnifies the lender. However, because the premium is paid by the borrower, the cost comparison between providers is a legitimate element of loan selection.

Regional and first‑home buyer considerations

The Commonwealth Home Guarantee Scheme, administered by Treasury (Treasury Home Guarantee Scheme), allows eligible first‑home buyers and regional buyers to obtain a mortgage with a deposit as low as 5 per cent without incurring LMI. For borrowers outside this scheme, LMI remains unavoidable. Both Genworth and QBE offer first‑home buyer discounts of 10–15 per cent on published premiums for owner‑occupied purchases, though the eligibility criteria differ. Genworth requires a minimum 5 per cent genuine savings history; QBE’s discount is available to any first‑home buyer with a clean credit file, regardless of the source of deposit.

Regional property postcodes attract higher LMI premiums from both insurers, reflecting the historical volatility of non‑metropolitan housing markets. Genworth applies a 0.25 per cent regional loading for all LVR bands above 90 per cent, while QBE imposes a 0.15 per cent loading across all LVRs above 80 per cent. For a regional borrower with a $400,000 loan at 93 per cent LVR, Genworth’s effective rate would be 2.60 per cent (2.35% base plus 0.25% regional), compared with QBE’s 2.15 per cent (2.00% base plus 0.15% regional), a $1,800 difference on the premium amount alone.

Conclusion

The 2026 LMI pricing environment features a widening spread between Genworth and QBE, with QBE offering premium savings of 10 to 40 basis points in the 85.01 per cent–97 per cent LVR range, particularly for larger loan amounts and in regional areas. Genworth retains price leadership in the lowest risk bands and among lenders that value its established claims history. APRA’s capital adequacy framework continues to underwrite the viability of the LMI market, and Treasury‑backed guarantee schemes provide a cost‑free alternative for a subset of borrowers. The comparison presented here is drawn from publicly available rate schedules, APRA prudential standards, and Treasury program parameters. Individual loan outcomes depend on the borrower’s full financial profile and the lender’s insurer panel.

Information only, not personal financial advice. Consult a licensed mortgage broker.