What's Lender's Mortgage Insurance (LMI)?
Lenders Mortgage Insurance (LMI) covers the lender if the borrower (that's you) defaults on the loan (that is you're missing payments or unable to pay at all) and the sale of your property doesn?t cover the outstanding debt. It?s usually required for loans the lender considers more risky, for example when the amount you the customer borrow is over 80% of the property's value.
It's really important to realise that only the lender is covered by this insurance. It offers no protection to you the borrower.
An expert Aussie Broker will explain how to put together the maximum deposit you can so you can avoid paying LMI if possible. If not, they can help you put together a savings plan to get to 20% equity as quickly as possible so you avoid LMI.
This is all part of your free appointment with an expert Aussie Broker.