What is Lenders Mortgage Insurance (LMI) and will I have to pay it?
Insurance that protects the lender from losses it might incur on your loan.
- Lenders Mortgage Insurance (LMI) is a one-off insurance premium paid
by a lender to an insurance company on low equity (or high LVR) loans.
- Generally LMI applies where the loan is over 80% or 85% of the security value of the property.
- This
insurance premium is normally passed on to the borrower, either by
adding it to the loan, or by requiring the borrower to pay it in cash.
- Sometimes we negotiate a discounted LMI premium.
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