Demystifying Lenders Mortgage Insurance (LMI)

You may have heard us speak about Lenders Mortgage Insurance in previous articles (like: What you need to know about Lenders Mortgage Insurance). What is it again? Lenders Mortgage Insurance (LMI) is designed to protect the lender when the borrower requires a higher than usual percentage of the value of the property. It protects the lender in the case that the borrower (you) cannot meet repayments. Although they have the house as security, if property values decline, that security may not be enough to cover the outstanding loan when the lender comes to sell it. Update Up until recently, if …