What is the cost of LMI?
Unlike traditional insurance premiums, LMI is usually a once only premium (cost) payable at loan settlement that provides cover for the full term of the loan. Usually, the lender will pass on the cost of the LMI premium to the borrower as a fee.
The cost will vary depending on how much money you borrow and the size of your deposit. Most lenders allow the premium to be capitalised into your loan or it may also be paid upfront. Your lender will provide details to you.
GST is payable on all LMI premiums and is included in the total cost quoted by your lender. Subject to various State Government regulations, stamp duty may also be payable on LMI insurance premiums. Where applicable, this amount is also included in the total cost.