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.

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#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.

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