Lender Mortgage Insurance (LMI) is an insurance policy that protects the lender in case you default on your home loan. It’s typically required when your deposit is less than 20% of the property’s value. While LMI doesn’t protect the borrower, it allows you to secure a loan with a smaller deposit, making home ownership more accessible. The cost of LMI can be added to your loan, but keep in mind this increases your debt. Understanding LMI is crucial for budgeting your home purchase and knowing your options. Contact us today to learn more about LMI and how it might impact your home buying process.
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