Lender?s Mortgage Insurance(LMI) is the insurance borrowers pay to their lending institution if a borrower intends to borrow over 80% Loan to Valuation Ratio(LVR). Mortgage Protection Insurance (MPI) is an insurance type a borrower chooses to take up to protect themselves should the policy holder pass away or be diagnosed with terminal illness. LMI is set to be payable by the banks to protect them against a borrower defaulting against the loan, whereas MPI is a choice for the borrower to take up should they wish to insure themselves and not burden their family in the incident of death or terminal illness.