Do I have to pay lenders mortgage insurance?

Generally speaking, if you borrow more than 80% of value of the property being offered as security for the proposed loan then yes you may have to pay a lenders mortgage insurance premium to your lender/bank. It's best to check this at the time of application or prior to.

The short answer is, it depends. Lenders mortgage insurance (LMI) is an insurance policy taken out by lenders to protect them in the event that you default on your home loan. It’s usually required if you are borrowing more than 80% of the property’s value. In some cases, lenders will allow you to borrow up to 95% of the property’s value, but you’ll need to pay LMI in this situation. The amount you pay will depend on the amount you’re borrowing and the type of loan you’re taking out. The good news is that you may be able to avoid paying LMI if you have a family member or friend who is willing to act as a guarantor on your loan. This means they will use the equity in their own property as security for your loan. This can be a great option if you don’t have enough of a deposit to avoid paying LMI. It’s also worth noting that some lenders will waive the LMI fee if you’re a first-time home buyer. Ultimately, it’s important to talk to your lender about your options and find out if you’ll need to pay LMI. This will help you make an informed decision about your home loan and ensure you’re getting the best deal possible.