If you’re thinking of using equity to buy property, but your equity doesn’t amount to 20% of the cost of the property you wish to purchase, you still may be able to go ahead with the purchase if you pay Lenders Mortgage Insurance (LMI). This is an insurance which protects the lender if you should default on your loan, but it’s the borrower who is required to pay the LMI premium, which can amount to thousands of dollars.  However, LMI is one way to buy an investment property with less than a 20% deposit.