What is Lenders Mortgage Insurance?

October 23rd

What is Lenders Mortgage Insurance.

Lenders Mortgage Insurance (LMI) protects your lender when you default on your home loan and there is a shortfall. A shortfall occurs when the proceeds from the sale of your home are not enough to cover the outstanding balance you owe to your lender.

Your lender can recover the shortfall from the LMI provider. However, your LMI provider may seek to recover the shortfall amount from you. In a transaction that requires LMI, you’ll have to pay the insurance premium.

Unlike any other form of insurance, lenders mortgage insurance in Australia doesn’t provide you with any protection since it is catered for your lender’s protection.

Mortgage Insurance Protection

How would your mortgage be repaid in the event of your death or if you faced a serious illness or injury? What protection do you have and is it adequate?

We have a duty of care to offer you the information and options available without any obligation to commit. We ensure our houses and our cars but we should insure our most important asset ourselves.

Mortgage protection can provide peace of mind by helping protect you, your partner, your family, and your home if you die prematurely or get seriously ill. It helps to provide dignity, control, and choice in stressful times.

Although we do not specialise in lenders mortgage insurance and other types of insurance products, we do work closely with insurance brokers we know that can provide you with the right solution and service to suit your needs.

The providers we work with are involved to provide you with information that ensures that you have the knowledge to make an informed decision about what is right for your situation. There is no obligation to do anything! But it is not wise to not know what your options are. We strongly recommend that at worst you meet and discuss your situation.

General Insurance

We have partners that specialise in this field and they can help ensure your house and contents, investment property, and motor vehicle. This is more of a convenience for you to save you time if you don’t have anyone. They can provide a product that is well known, highly featured, and well-priced. Once again, this is optional to you and not something you have to do with us. We do offer it, though.

Interested to learn about our lenders mortgage insurance? Looking for adequate protection for your prized possessions? Key Strategy Solutions can help you out! We can connect you with the right people to assist you with your unique needs.


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