It’s a type of loan insurance to protect your lender's potential losses if there is insufficient funds to clear your debt. It's a one-off fee that you need to pay if you have a deposit that's less than 20%.
How much does LMI cost?
It’s based on the value of the property, how much deposit you have and the total loan amount. There may be other factors that influence the cost, but a Home Lending Specialist can let you know if any apply.
How do I pay LMI?
It’s a one-off payment and depending on your situation, you could pay it at settlement or add to your home loan. If you’re adding it to your home loan, just be aware you’ll be paying interest on it.
Is LMI refundable?
It isn’t refundable after the first year. If you decide to repay your home loan, refinance or switch to another lender within the first year, then you may be eligible for a partial refund.