For April 2021 the ABS shows $6.7 billion of new loan commitments for first home buyers. Two-thirds of these being high loan-to-value implies $4.5b of potential mortgage lending requiring lender’s mortgage insurance.
The same data set shows $23.0 billion of owner-ccupied new loan commitments that are not first time buyers - representing a potential $8.7 billion of mortgage lending potentially requiring lender’s mortgage insurance.
So, yes, as a third of potential lender’s mortgage insurance volumes, first home buyers are a sub-set of the total - albeit a one-third sub-set of the total.
However as first time buyers also tend to have higher high loan-to-value ratios, the gross written premium on their lender’s mortgage insurance coverage is higher still.
Thus, it is likely first time buyers with high loan-to-value ratios represent more than half of lender’s mortgage insurance gross written premiums (remembering premiums rise exponentially, not lineraly, with rising loan-to-values).
For April 2021 the ABS shows $6.7 billion of new loan...
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Last
$3.84 |
Change
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Mkt cap ! $1.120B | |||
| Open | High | Low | Value | Volume |
| $3.87 | $3.89 | $3.76 | $4.317M | 1.129M |
Buyers (Bids)
| No. | Vol. | Price($) |
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| 3 | 7707 | $3.84 |
Sellers (Offers)
| Price($) | Vol. | No. |
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| $3.85 | 2540 | 1 |
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| Last trade - 16.10pm 07/05/2024 (20 minute delay) ? |
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Change
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| Open | High | Low | Volume | ||
| $3.86 | $3.88 | $3.76 | 211856 | ||
| Last updated 15.59pm 07/05/2024 ? | |||||
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