WHAT IS LENDERS MORTGAGE INSURANCE (LMI)?

WHAT IS LENDERS MORTGAGE INSURANCE (LMI)?

Lenders Mortgage Insurance (LMI) protects the lender in the event that you default on your loan. It is paid as a once-off insurance premium or fee when your loan is advanced. It does not affect your interest rate.
LMI is only applicable if your loan poses a relatively high risk to the lender—usually because you are borrowing a high percentage of the property value.

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