Lenders Mortgage Insurance (LMI) is a one-off, non-refundable, and non-transferable premium added to your home loan. It is calculated based on the size of your deposit and the amount you borrow. The larger your contribution to the purchase price of your property, the lower the LMI cost will be.
Here are some key points about LMI:
- LMI is typically required if you borrow more than 80% of your home’s value.
- The insurance is designed to protect the lender, not the borrower.
- Arranging LMI is not your responsibility; your lender will handle it for you.
- Increasing your deposit can significantly reduce or even eliminate the need for LMI.
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
Although every effort has been made to verify the accuracy of the information contained on this page and on our website, Investax Group, its officers, representatives, employees and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.
