Generally, when loans are taken out in excess of 80%, or where the lender provides securitized lending, the lenders are required to insure the loan risk. The term for this insurance, is Lenders Mortgage Insurance, or LMI.
The LMI charge is generally passed on to the borrower and can mean additional costs of several hundred and even thousands of dollars.
There are occasions when these costs can be added to the loan, although not all lenders will allow this to be done.
We recommend that you check all fees and charges with your lender prior to accepting any offer of finance.
Click here for link to PMI
Click here for link to GE Insurance
