Glossary - lender's mortgage insurance (LMI)

lender's mortgage insurance (LMI)

Lender's mortgage insurance (LMI) is a type of insurance that protects a credit provider from borrowers not being able to repay their loan. LMI is usually a one-off cost to a home loan borrower, payable when the amount borrowed exceeds 80% of the value of the property. LMI does not benefit the borrower, it only protects the lender.

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Last updated: 02 Feb 2016