CBA FACT SHEET - Click the link: Understanding Lenders Mortgage Insurance
Lender Mortgage Insurers (LMI): Are insurance companies that financial institutions purchase insurance from over mortgage payment defaults.
It’s commonly known within the Australian lending market that loans over 80% loan-to-value ratio (LVR) will likely require a LMI policy.
LENDERS’ MORTGAGE INSURANCE AND LOW DEPOSIT PREMIUM
Lenders’ Mortgage Insurance (LMI) or Low Deposit Premium (LDP) may apply where there is an increased risk associated with a home loan. The circumstances of your loan determine whether a loan will incur LMI or LDP. They are a one-off cost and not a fee for the establishment of a loan.