What is Lenders Mortgage Insurance
Lenders Mortgage Insurance (LMI) can help you to become a homeowner sooner without having a 20% deposit.
LMI allows the borrower to borrow a higher amount of the purchase price to buy a property. ie using a smaller deposit and borrowing between 80 - 95% of the purchase price.
LMI is a one-off fee which can be added to the loan amount or paid upfront by the borrower.
LMI does not protect the borrower. It protects the lender against loss should the borrower be unable to pay the loan.
It is not to be confused with Loan Protection Insurance which may cover the client in the event of death, sickness, unemployment or disability.