Apply now

Back to FAQs

What is Lenders Mortgage Insurance (LMI)?

Lenders' Mortgage Insurance is insurance that protects the lender from financial loss if you’re not able to make your repayments and default on the loan.

You’ll need to pay LMI if you borrow more than 80% of a property’s value (i.e. if you have less than a 20% deposit).

Factors that affect how much LMI include:

  • The size of the loan - the bigger your loan, the higher the LMI
  • Your deposit amount - the smaller the deposit, the higher the cost of LMI
  • The purpose of the loan – investors can pay as much as 20% more for LMI than owner occupiers
  • Your employment status – how much you earn and whether your work is full time or casual
  • The insurer - premiums differ between insurers

LMI can cost you thousands of dollars, however there are ways to avoid paying LMI or reducing how much you pay including:

  • Ensuring your deposit is 20% or more
  • Having a guarantor on your loan (Tiimely Own home loans don't offer guarantor loans, however our in-house broker service can assist you in finding a suitable guarantor loan), and
  • Applying for the First Home Loan Deposit Scheme

Found in:

  • First home owner
  • Home loans explained

Found in:

Legal information about our rates
Our home loans are subject to credit criteria and eligibility requirements. Home loan interest rates are for new customers only and can change. Our comparison rates are based on a $150,000 loan amount over a 25 year term. They factor in fees associated with applying for the loan; ongoing fees and fees associated with leaving the loan. Our fixed loans roll to a variable principal and interest rate at the end of the fixed term. If the interest only period is not specified, the comparison rate is calculated on a one year period.

WARNING: The comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Tiimely Turnaround™
^Our turnaround times are up to 2x faster than the industry, based on a comparison of our average platform submit to approval time compared to industry submit to approval time, published here  (June 2023). Customer turnaround times are dependent on individual circumstances and may require an assessor to obtain more information.

Our trade mark
Tiimely is a registered trademark of Tiimely Pty Ltd.