Lenders Mortgage Insurance (LMI) is a one-off, non-refundable, non-transferrable premium that’s added to your home loan. The amount you pay in LMI is calculated relative to the size of your deposit and respective loan amount. The more you contribute to the purchase price of your property, the lower the cost will be. LMI protects the bank against any loss they may incur if you are unable to repay your loan and will generally apply to you if you are unable to contribute a 20% deposit or are not eligible for a waiver because of your profession.