Lenders Mortgage Insurance (LMI) is paid on all home loans by the lender to a third party or in-house insurance organisation. It is charged to you if the loan amount is 80% or more of the lenderâs valuation of the property you are purchasing.
You can avoid paying LMI by contributing at least 20% of the property valuation. To do this, you may need to seek funds from other sources:
Sometime lenders will allow the LMI to be capitalised, which means itâs added onto the loan amount.
LMI is expensive but can be worthwhile â itâs the only way you can buy a property if you havenât saved up a 20% deposit.
UNOâs mortgage advisers can step you through LMI calculations, including LMI optimisation strategies. Book in a quick call with our customer care team or via online chat.