Lenders Mortgage Insurance is a type of insurance that lenders take out to protect themselves in case the borrower defaults on the loan. Lenders usually charge the borrower a one-off fee to cover this insurance if the amount borrowed is more than 80% of the value of the mortgaged property. LMI is an insurance product that will protect the lender in case the borrower defaults on the loan. This amount is generally paid by the lender up to an LVR (Loan to Valuation Ratio) of 80% (some may go up to 85%), and the borrower will pay if the LVR is above that.
This information in this article is general only and does not take into account your individual circumstances. It should not be relied upon to make any financial decisions. uno can’t make a recommendation until we complete an assessment of your requirements and objectives and your financial position. Interest rates, and other product information included in this article, are subject to change at any time at the complete discretion of each lender.