Lender’s financial insurance rates (LMI) was an insurance premium particular consumers have to pay getting if the their home put otherwise equity is lower than 20% of its property’s worthy of.
Prices compared: LMI added to home loan compared to paid back upfront
This type of money are thought a higher chance with the bank, so LMI try passed away into the borrower as a low-refundable payment.
LMI discusses the lending company resistant to the risk of default.