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ISCOVER
Staff Reporter
Macquarie has launched a new product that allows borrowers to incorporate general insurance with a three-year price cap into their home loan.
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From today, borrowers will have the opportunity to incorporate general insurance (building, building and contents, and landlord insurance) as part of their mortgage application process with Auto & General.
Premium costs will be capped for the first three years of their loan if borrowers don’t claim on their policy and their situation remains unchanged.
In addition to the cap, the insured value will be indexed in line with rising building and contents replacement costs.
The three-year price cap is particularly timely, considering research from the Insurance Council of Australia that shows building insurance premiums, on average, increased in Australia by 16 per cent per annum during the period from December 2009 to December 2012.
James Casey, head of Macquarie Mortgages Product, said the inclusion of a general insurance option in the Macquarie mortgage package would provide a more coherent and convenient experience for brokers and clients alike.
“We’re delighted to be working with Auto & General to offer a comprehensive mortgage and general insurance solution for mortgage brokers and their clients. We’re also pleased to be able to provide added security to borrowers in the knowledge that their premium could be capped for the first three years of their policy,” Mr Casey said.
Only one application process is involved, no additional paperwork is required and the risk of delayed settlement due to an outstanding Certificate of Currency is reduced.
Auto & General chief executive Ram Kangatharan said the creation of a stable, long-term partnership between the two companies was a milestone for Auto & General.
“It’s been a pleasure to work with Macquarie and create an integrated, tailored insurance product which we believe will not only meet customer needs but enhance their journey,” Mr Kangatharan said.
