Macquarie Mortgages has announced the launch of a product allowing customers to incorporate general insurance - building, building and contents, and landlord insurance - as part of their mortgage application process with insurance provider, 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 bank says the three-year price cap is ‘particularly timely’, considering research from the Insurance Council of Australia showing building insurance premiums, on average, have increased in Australia by 16% per annum during the period December 2009 to December 2012.
James Casey, head of Macquarie Mortgages Product, says the inclusion of a general insurance option to the Macquarie mortgage package will provide a more coherent and convenient experience for both mortgage brokers and their clients.
“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,” says Casey.
He says that incorporating general insurance as part of the mortgage application process provides an encompassing solution for both mortgage brokers and their clients. 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.