Lenders mortgage insurance (LMI)
abbreviationlend·ers mort·gage in·sur·ancepronounced LEN-duhz MOR-gij in-SHOOR-uns
Last reviewed 16 April 2026
What does the abbreviation Lenders mortgage insurance (LMI) mean?
A one-off insurance premium paid by the borrower to protect the lender if the borrower defaults on the loan. It applies when the deposit is below 20% of the property value and typically costs 1% to 3% of the loan amount.
How the abbreviation Lenders mortgage insurance (LMI) is used
Because our deposit was only 12% of the property value, we had to pay about $15,000 in LMI on top of our other upfront costs.
Synonyms
LMI
Related words
Cite this entry
MLA citation: "Lenders mortgage insurance (LMI)." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/lenders-mortgage-insurance-lmi. Accessed 29 May 2026.
Chicago citation: How to Property. "Lenders mortgage insurance (LMI)." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/lenders-mortgage-insurance-lmi.
APA citation: How to Property. (2026, April 16). Lenders mortgage insurance (LMI). https://howtoproperty.com.au/definitions/lenders-mortgage-insurance-lmi