Lenders Mortgage Insurance
Thinking about choosing a home loan? Don't forget about the hefty cost of lenders mortgage insurance. While you're saving for a deposit, whether you are buying your first home or refinancing, make sure you factor in lenders mortgage insurance if you're planning to borrow more than 80 percent of the purchase price.
Lenders mortgage insurance (LMI) is a security cost against the loan for the lender in case you default on repayments. The lender is covered by the insurance but it is the mortgagee that must pay for the bill. Usually lenders mortgage insurance is an upfront cost that lenders charge but some lenders do allow you to add the burden to your loan.