Underwriting changes for new applications
We’ve made it easier for your customers to take out Mortgage Repayment Cover
To help your customers get covered, faster, we’re pleased to share eligible customers taking out $6,000 per month or less of Mortgage Repayment Cover will no longer be required to provide proof of mortgage at point of application, or at claim time.
From 29 August, customers applying for Mortgage Replacement Cover for an owner-occupied home will now be asked a refreshed, deeper set of questions to validate their required monthly cover amount. Our new built-in mortgage repayment calculator will then automatically determine whether they’re within the $6,000 limit.
If a customer doesn’t meet the eligibility criteria or requires $6,001 per month of cover or more, we’ll still require proof of mortgage as per current process.
We’re here to help
If you have any questions, please take a look at our Frequently Asked Questions, or get in touch with your Business Partnership Manager – they’ll be happy to help.
Thank you
It’s our priority to make protecting what matters most to your customers as easy as possible. We hope this enhancement comes as welcome news to you and your customers.
FAQs
Frequently Asked Questions
Yes, applicants will now be asked a refreshed, deeper set of questions regarding their mortgage(s) as follows (to check and validate eligibility):
- remaining Loan amount
- current interest rate
- loan term end date.
This information is easily found on their mobile banking app, or by logging into their banking portal.
No, this is still an Agreed Value benefit. With our built-in mortgage repayment calculator we can simply validate the declared monthly repayment amount, and an eligible claim can be financially accepted without proof of mortgage.
We’ve refreshed the question set to help us better assess a customer’s eligibility. If evidence of their mortgage is required, then the monthly obligation question will still be asked.
The customer will still be eligible if the sale of the property has gone unconditional and they can confirm the settlement date.
If the declared monthly repayment amount is greater than the calculated repayment(s), proof of mortgage will be required.
It’s not uncommon for people to have split home loans with different details. Our eApp can accommodate up to 10 separate mortgages (for the same owner-occupied property), and our paper app has room for additional detail.
Applicants can choose not to enter these details and will instead be required to provide proof of mortgage.
For this level of cover, we’ll revert to our existing process of requiring proof of mortgage at the point of application.
As long as the combined total of their existing cover and new cover does not exceed $6000 per month, and they meet the eligibility criteria, no proof of mortgage is required.
If you have submitted business in the pipeline for a monthly sum insured of up to $6000 per month, our Underwriting team can reassess this provided the eligibility criteria are met and the following information is provided:
- remaining Loan amount
- current interest rate
- loan term end date.
You can get in touch with them at Newbusiness.nz@chubb.com