Lenders Mortgage Insurance (LMI) applies to all loans that exceed a LVR of 80%.
It is a once off payment paid by the borrower to the bank to cover the bank for the additional risk they take on for lending over the 80% threshold.
It is an additional cost on the loan which some lenders are willing to add to the loan depending on the final agreed terms.
If you finance 80% of the purchase value or less then no insurance is required.
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