Insurance that protects the lender (not the borrower) if the borrower defaults and the property is sold for less than the outstanding loan. Required when the loan-to-value ratio (LVR) exceeds 80%. LMI can cost tens of thousands of dollars, it is usually added to the loan. Some lenders waive LMI for professionals (e.g. doctors, lawyers) or for government-backed schemes.
Glossaryfirst home
What is Lenders Mortgage Insurance (LMI)?
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