Usually no. It generally is not transferable, though policy and product circumstances vary.
What is Lenders Mortgage Insurance (LMI)?
Quick definition
LMI is insurance that protects the lender (not the borrower) when higher-LVR loans are approved.
Home loansBorrowing capacityGeneral
Overview
Lenders Mortgage Insurance is typically required when borrowing above certain LVR thresholds, commonly above 80% depending on lender policy.
Although paid by the borrower in many cases, LMI primarily protects the lender against some losses if default occurs.
LMI can be paid upfront or capitalised into the loan, which affects the effective starting balance and interest cost.
Why it matters
- Can materially increase upfront or financed borrowing cost.
- May allow earlier entry into property with lower deposit.
- Should be assessed against alternatives like larger deposit timing.