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.
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By the time you add up the cost of presents, an indulgent feast and a holiday with the kids, come Christmastime your bank account can end up feeling less Ho Ho Ho and more no, no, no.
If you want to build your own property, you’ll usually have to apply for a construction loan. These differ from regular home loans. Most lenders release the money in instalments, which relate to each phase of construction.