Lenders mortgage insurance (LMI)
Is the lender's mortgage insurance a one-off payment?
LMI or lender's mortgage insurance is a one-time payment, paid during the settlement of the loan. The amount is not required to be paid regularly like mortgage payments, so you will have to arrange for the lump sum LMI payment in advance before purchasing the house. Loans with a deposit of less than 20% will require the payment of mortgage insurance to the lenders.
Is the lender's mortgage insurance refundable?
Lenders mortgage insurance (LMI) is not refundable, at least not for loans settled after 2012. So, by chance, if you happen to switch to a new lender or exit your home loan entirely, the eligibility for the refund will be terminated. To avoid paying lenders mortgage insurance entirely, try to pay a deposit of at least 20%.