What is Lenders Mortgage Insurance (or LMI)?

Lenders Mortgage Insurance, commonly referred to as ‘LMI’, is an insurance that covers a Lender should a borrower default on their loan and the lender incurs a loss.

As a general rule LMI is payable on Home Loans where the loan to valuation ratio (LVR) is greater than 80% and allows borrowers purchasing property to potentially gain a loan at up to 95% of the purchase price of a home.

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Applying for a Business Loan: What do Banks look for?

 

 

There is a saying that a banker is “someone who gives you an umbrella when it is sunny and takes it away when it is raining!”

I am sure many small businesses have felt this way when dealing with their bank or lender in gaining finance, or simply trying to maintain the finance agreements they already have.  Over the years I have witnessed and experienced the stress, frustration and at times dismay of business owners when a loan approval is not forthcoming or conditions of an approval have not been acceptable to the business owner. Continue reading Applying for a Business Loan: What do Banks look for?