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What is Lenders Mortgage Insurance?

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.