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.