Lenders mortgage insurance(LMI) is a one-off payment, paid during the settlement of the loan. It is not required to be paid regularly like your mortgage repayments, so you’ll need to factor the lump-sum LMI payment into your budget before buying a house. Loans with a deposit of less than 20% will usually require you to pay lenders mortgage insurance.
How to get a home loan with no LMI?
PMI (private mortgage insurance) – also known as LMI (lenders mortgage insurance) – can be avoided by paying a deposit of 20% or greater on your home loan. PMI is designed to protect the lender in the event of loan default which they see as more likely with a lower deposit.