Solicitor and Chartered Accountant | Addsum

+61 450 318 988 | sheldon.mak@addsum.com.au

Generally borrowing at a high loan-to-value ratio (LVR) triggers lender mortgage insurance (LMI), and LMI is on-charged to the relevant borrower.  Generally borrowing at 80% or 85% and above LVR would require LMI to be paid by the borrower, however it is possible to capitalise the LMI as part of the loan amount (in addition to the loan amount that has been approved), instead of the borrower having to pay LMI spearately upfront.