What is Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance (LMI) acts to protect the lender, not the borrower, should the borrower be unable to make the mortgage repayments. LMI premiums are payable by the borrower when the amount borrowed is above a certain percentage, usually 80%, of the lender's valuation of the property. Some lenders will allow you to add the LMI premium to your home loan; others may require you to pay it up front.
Do I need Lenders Mortgage Insurance (LMI)?
As a general rule, if you don't have 20% deposit you will incur Lenders Mortgage Insurance (LMI).
How much should I allow for Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance (LMI) is a one-off payment that some lenders will allow you to add to your home loan; others may require you to pay it up front. The final amount of LMI required will depend on how much you are borrowing (i.e. how much deposit you are contributing).
Who does Lenders Mortgage Insurance (LMI) cover?
Lenders Mortgage Insurance (LMI) acts to protect the lender, not the borrower, should the borrower be unable to make the mortgage repayments.
How do I pay Lenders Mortgage Insurance (LMI)?
Some lenders will allow you to add the Lenders Mortgage Insurance (LMI) premium to your home loan; others may require you to pay it up front.