What is Lenders Mortgage Insurance?
Lenders Mortgage Insurance, or LMI, is insurance that protects the lender, not you. It’s usually a one-off payment made by the borrower at the time of loan settlement. Here are the facts about LMI:
- LMI is a type of insurance you can expect to pay if you borrow more than 80% of your home’s value.
- LMI protects the lender – not the borrower.
- You don’t need to arrange LMI yourself – your lender will sort it for you.
- It’s possible to save on LMI by saving a bigger deposit.
How much is Lenders Mortgage Insurance?
This depends on where you borrow, your lender and the size of your deposit. Your broker can show how to calculate Mortgage Insurance for your circumstances.