November 27, 2013
Lenders Mortgage Insurance (LMI) usually applies to loans with a loan to value ratio (LVR) of greater than 80%.
LMI allows you to borrow up to 95% of the purchase price with a lower deposit than traditionally required.
It is insurance for the Lender not the Borrower but it is paid for by the Borrower!
LMI is a once only payment and can usually be added to the loan amount.