Will I need Lenders Mortgage Insurance (LMI) and what does this cover?
Lenders Mortgage Insurance (LMI) protects your lender in the event that you are unable to meet your loan repayment obligations. Thus, it is not something you will need, but something your lender may require from you if you have less than a 20% deposit.
LMI can be paid in full at settlement, however most lenders will add it to the total loan amount so it can be paid off on top of the borrower’s monthly loan repayment. How much you will be required to pay will depend on the size of your loan.
Find out if you might need to pay LMI here.