What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is an insurance paid by You (the customer) to an insurance company to insure the bank when they agree to lend you more than 80% of the purchase price of your home.

LMI does not protect you as the customer, it protects the bank. It is easy to think Lenders Mortgage Insurance protects you, but it doesn’t. It does HELP you however.

Put it this way, if you had to save 20% deposit for your home to avoid paying LMI, but it takes 5 years to do so… how much rent would you pay in the meantime? Or how much would house prices increase. Sometimes it just makes sense to pay the Lenders Mortgage Insurance to get you into a home sooner.

There are also some great Federal and Local housing schemes available to assist in waiving or reducing LMI. The best way to figure out what you are eligble for, is to reach out to your local mortgage broker (preferably us) so we can assist you with your goals and getting the information right.