Understanding Lender’s Mortgage Insurance (LMI) | Home Loans Made Simple by Unloan

Описание: When delving into home buying and securing a home loan, it's essential to understand the potential additional costs, such as Lender's Mortgage Insurance (LMI). LMI comes into play when your loan-to-value ratio (LVR) is 80% or higher. It’s a payment made that protects the lender, not the borrower, in case of loan default.

LMI is a one-time, non-refundable, and non-transferrable premium that you might need to factor into your purchasing budget.

You can choose to pay the fee upfront, but most banks and lenders will add the cost of LMI to your home loan so you can pay it off over the term of your loan, but that also means that you’ll have to pay interest on the LMI amount.

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