What is LMI and when is it worth paying?

Lenders Mortgage Insurance explained in plain English.

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Short answer

LMI protects the lender, not you, when you borrow more than 80% of a property’s value. It is usually added to your loan.

When paying LMI makes sense

If prices in your target area are rising faster than you can save, paying LMI to buy sooner can come out ahead. We run the numbers both ways.

Ways to avoid it

  • Home Guarantee Scheme for eligible buyers
  • Family guarantee
  • LMI waivers for certain professions

The Rate Engine offer

$1,000 cashback on loans of $1M or more

Refinance or take out a new loan of $1 million or more with us and we'll pay you an extra $1,000, on top of any lender cashback. We compare 30+ lenders and it costs you nothing.

$500

when your loan settles

$500

on your loan's 12-month anniversary

Book a call

Offer applies to new loans and refinances of $1,000,000 or more, arranged through Rate Engine and settled from [start date]. $500 is paid within [X] days of settlement and $500 within [X] days of the loan's 12-month anniversary, provided the loan is still active and has not been refinanced or repaid. One payment per loan. Subject to lender approval.

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