What is Lenders Mortgage Insurance and how much does it cost?
Lenders Mortgage Insurance (LMI) is a payment made by the borrower that protects the lender in the unlikely case that a borrower defaults and a loss is evident after the mortgaged property is sold.The premium for LMI is payable once only at the commencement of the loan and protects the lender for the life of the loan.Lenders usually require LMI whenever the Loan to Value Ratio (LVR) is above 80%. LMI may be required when LVR is below 80% for some types of property. If LMI is required, you will also need to prove you have saved at least 5% of the purchase price. LMI is provided by an underwriter outside the Lender. The premiums are determined by the underwriter based on the amount of the loan and the LVR. Q. When do I pay stamp duty on lenders mortgage insurance premium and how much does it cost? Stamp duty is payable on all Lenders Mortgage Insurance premium is calculated according to the State or Territory in which a property is located. Q. What is the Dynamic Loans Valuation Fee? Whe
