LMI protects the lender — not you — when you borrow more than 80% of the property's value. It can cost thousands, but there are ways around it.
When LMI applies
- Deposits under 20%
- Some refinances above 80% LVR
- It's usually added to the loan
Ways to avoid it
- Government 5% deposit schemes
- A family guarantor
- Professional waivers (e.g. medicos)
