Lenders mortgage insurance is a clear one off insurance payment that you pay to the bank if you’re borrowing over 80% of your properties value.
So if you’re trying to borrow 90% you’ll make a one off insurance payment to the lenders mortgage insurer (or the LMI) to cover them in the case of default or if something goes wrong with the loan and you can’t pay it back, so basically it’s to cover the bank if something happens.
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