Mortgage insurance for lenders, or LMI, is insurance that protects the lender, not you. Usually, it is a single payment made by the borrower at the time of the loan settlement.
Why do you have to pay for LMI? If you do not pay for LMI and you have less than 20% deposit, then most lenders will not lend you the required funds.
How does LMI benefit you? By paying LMI, the risk to the lender is reduced, and you can get your desired property without having to wait and save for the full 20% deposit, so, in a certain sense, it is a situation where everyone they come out winning!
So why not contact a Choice Choice mortgage broker today at 136678 and get expert advice on mortgage loans at no cost to you, or visit www.mortgagechoice.com.au for more information?
Video credits to Mortgage Choice YouTube channel