Lenders Mortgage Insurance protects the lender in the event of default on a loan. If you owe more than 80% of the value of the property, you’ll need to get LMI. Learn more about the policy and how it works by reading the Lenders Mortgage Insurance Customer Fact Sheet. For those looking for a low introductory rate, you can save money with a low deposit home loan with Mozo. In addition, their award-winning local team is available to answer any of your questions about LMI.
Lenders Mortgage Insurance
Lenders’ Mortgage Insurance (LMI) can be a hefty expense. It is paid upfront by the lender or rolled into the loan as a one-time payment. Depending on the lender and the size of the deposit, the cost will vary.
If you decide to pay the premium in advance, be aware that you may have to pay stamp duty on the money you borrow Mortgage Adviser Swindon. Lender’s Mortgage Insurance can cost several hundred or even thousands of dollars.
Unlike Mortgage Protection Insurance, Lenders Mortgage Insurance only protects the lender if the borrower defaults on the loan. If the borrower is unable to repay the loan, the lender can repossess the property and recover its debt.
Mortgage insurance can also help lenders approve larger loan-to-value ratios. But if you’re worried about losing your home, you may want to get mortgage protection insurance. If you have any questions about mortgage protection insurance, speak to your Home Lending Specialist.