Help guide
LMI (Lenders Mortgage Insurance) in plain English
When LMI applies, who it protects, how it is usually paid, and how brokers compare low-deposit paths without turning it into social-media myth.
Who LMI protects
LMI generally protects the lender if you default and the property sale does not clear the debt — it is not the same as consumer “mortgage protection” insurance for illness or job loss.
Premiums are commonly capitalised (added to the loan) or paid upfront depending on product — your loan contract and credit proposal spell this out.
How brokers use it
LMI is one input into total cost of borrowing; compare monthly repayments, fees, and flexibility — not just headline rate.
Lender mortgage insurers and caps change by lender segment; two “similar” banks can land on different outcomes for the same payslip story.