Lenders Mortgage Insurance (LMI) Explained

LMI is a one-off premium charged when your deposit is below 20%. It protects the lender, not you. Premiums escalate sharply at 90% and 95% LVR.

Ways to avoid LMI

  • 20% deposit
  • First Home Guarantee (5% deposit, no LMI)
  • Family Home Guarantee (2% deposit for eligible single parents)
  • Professional LMI waivers (doctors, lawyers, accountants and others)
  • Family guarantor loans