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LENDERS' MORTGAGE INSURANCE

LMI may help you buy sooner, but it protects the lender

Lenders' Mortgage Insurance can support some low-deposit lending. Understand the premium, loan impact and alternatives before deciding.

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What is Lenders' Mortgage Insurance?

LMI protects the lender if a borrower defaults and the sale of the property does not repay the outstanding debt and costs. The borrower commonly pays the premium, but does not receive the protection.

If the insurer pays a claim to the lender, it may seek recovery from the borrower where legally permitted.

FAQs

It is commonly required when the loan is above the lender's preferred proportion of the property value. Thresholds and exemptions vary.