Why do I need Lenders Mortgage Insurance (LMI)?
Traditionally, credit providers may only lend up to 80% of the total home loan amount, or maybe even less if you are borrowing for a rural property.
However, LMI allows you to borrow more for your purchase (in some cases up-to 97%) as it works by protecting your credit provider against any risk associated with your property should you default on your loan.
The premium you will need to pay for LMI depends on the purchase price of the property and how much you are borrowing. This insurance is paid by you at the time of settlement.