What actually is LMI?

Added: 2026-06-03

[00:00:00]If you got less deposit, um that's when your rate is higher and that's when you pay lenders mortgage insurance. But it's not insurance for you. It's for the for the bank. So, um it just protects them that if you don't pay and your house is then sold at a lesser value than what you actually bought it for, they've got the insurance on themselves and then they can get paid out.

[00:00:23]>> Right. And is that generally on a you haven't got enough deposit to put down?

[00:00:28]>> Yes. If you don't have 20% deposit plus plus stamp duty and all the rest of your fees, so your convancing fees and stuff and and that kind of thing, um that's when you get lenders mortgage appearance.