Lenders Mortgage Insurance (LMI) is a one off premium paid to the lender which protects the lender, not you, in the event of loan default or a capital loss at the time of property sale.
This is charged where the loan is 80% or more of the value of the property being purchased and can be added to the loan.
The cost is dependent on the Loan to Value Ratio (LVR) and the loan amount.
Check out this video to learn more about Lenders Mortgage Insurance and how it affects you...
If you have any further questions, contact me today at Mortgage Choice in Blackwood & Mitcham on (08) 8178 0700.
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