Lenders Mortgage Insurance (LMI) has a bad reputation — but it’s not always the villain it’s made out to be.
What Is LMI?
LMI protects the bank, not you, when you borrow more than 80% of the property value.
When Does It Apply?
Usually when your deposit is under 20%.
Why People Avoid It
Because it can cost thousands upfront or be added to the loan.
When LMI Can Actually Be Smart
✔️ If property prices are rising
✔️ If waiting to save 20% would take years
✔️ If the growth outweighs the cost
✔️ It could help you achieve your dream of homeownership sooner
Sometimes paying LMI once is cheaper than waiting while prices increase.
Ways to Avoid or Reduce LMI
- Using the Governments 5% Deposit Scheme
- Family guarantee
- Larger deposit
- Lender-specific policies that include LMI waivers for a number of Healthcare workers and Legal/Finance professionls see our full list on our website
Our Approach
We don’t automatically avoid LMI. We run the numbers and show you:
- the cost
- the alternatives
- the long-term impact
Then you decide.