Lenders Mortgage Insurance (LMI) protects your lender in the event of you defaulting on your home loan. In the event that your loan is foreclosed, your property is subsequently sold and the amount from the sale is not enough to repay the loan in full, Mortgage Insurance will meet the shortfall for the lender.

Lenders Mortgage Insurance should not be confused with Mortgage Repayment Insurance which protects you in an event that prevents your Mortgage payment being made.

Lenders Mortgage Insurance is taken in conjunction with your Home Loan. Depending on your chosen lender your loan will be mortgage Insured above 65% LVR. The lender usually pays the Mortgage Insurance up to 80% LVR, the client usually pays (capitalises the premium to their loan) above 80%.

Lenders Mortgage Insurers have tighter policies and criteria for loans above 80% LVR and put restrictions on security locations and type, Client Income, and many other factors.