On the other hand, when your LVR is higher than 80%, your interest rate and home loan costs may start to increase.
You may be required to pay lender’s mortgage insurance (LMI). This is a one-off premium, generally paid at settlement of your loan, that protects the lender from the increased risk brought on by the high LVR.
In most cases, the higher your LVR, the higher your LMI premium will be.