How is Lenders Mortgage Insurance (LMI) calculated?
Lenders Mortgage Insurance or LMI, is calculated as a percentage of the total amount borrowed. The fee the borrower pays increases as the LVR and loan amount increases.
This fee varies slightly from lender to lender and depends on a number of variables including if the property is a new purchase or investment, if the property will be owner occupied, and where the property is located since stamp duty is payable on LMI.
Find out if you might need to pay LMI here.