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What is Lender’s Mortgage Insurance?
What is Lender’s Mortgage Insurance (LMI)?
LMI is often referred to as mortgage insurance. It is usually required by the lender where the borrower’s deposit is less than 20% of the purchase price of the property. LMI is paid for by the borrower, and protects the lender in the event that the borrower defaults on their repayments.
It makes sense to ensure that you can continue to meet your commitment in the case of unforeseen events. LMI can assist in these cases.