Transcript
0:00
What is lender’s mortgage insurance AKA LMI?
0:04
Banks typically lend 80 of the value of your desired property. This means that you need to save 20% in savings for the deposit. If you don’t have this on hand, the bank can still lend this to you, but with an additional charge.
0:16
This is called Lenders Mortgage Insurance or LMI. What is LMI?
0:22
#1 – It’s insurance for the bank, not for you.
0:25
#2 – LMI covers the risk that the lender might face later on while the loan is still active.
0:31
#3 – It’s a one-off upfront payment and it’s not refundable.
0:35
#4 – Some professionals, like lawyers, accountants, and doctors are exempt from paying LMI.
