At Sorted Mortgages, one of our primary concerns is your financial security and wellbeing.
We’re here to help you plan ahead to make sure you can always meet your loan repayments and financial commitments, even in the case of unforeseen circumstances and events.
As well as maintaining relationships with a wide variety of lenders, we also have partnerships with reliable insurance providers who can help you with cost-effective solutions tailored to meet
your needs. When we talk to you about your loan requirements, we’ll also talk to you about your insurance cover.
When taking out a home or investment loan, there are many insurance products that are relevant and all have a different purpose. Choosing the right cover or combination of insurance products can be very confusing. Let’s take a look at the insurance products that you may need to know about if you’re considering taking out a mortgage.

Lender’s Mortgage Insurance (LMI)
Lender’s Mortgage Insurance (LMI) is in place to protect your lender if you default on your mortgage repayments. LMI is a government regulation and it’s compulsory for your lender to charge you a fee for LMI if they are lending you 80% or more of the purchase price of your property. It is a one off payment made to your lender when you set up your loan.
It should be noted that LMI does not cover you if you should have a problem repaying your loan. In the unfortunate event that you cannot make your repayments and your home is repossessed and sold, LMI covers the gap between what the property is sold for and what is still owing to your lender.
With LMI, the fee is added to the total of your loan and paid off as part of your monthly mortgage repayments. Even though LMI may help you secure a lo-doc loan or a loan with a small deposit, you will still have to meet all the statutory credit checks to ensure you can meet your mortgage repayments when you apply for your loan.

Mortgage Protection Insurance
Home buyers often confuse Mortgage Protection Insurance with LMI but it is a completely different product.
Mortgage Protection Insurance is taken out by you to protect your home in the event that you are unable to meet your mortgage repayments due to sickness, injury, unemployment or death. (LMI is designed to protect the lender.) It should be noted that Mortgage Protection Insurance only provides cover for your mortgage and if you require coverage for other expenses in case of sickness, injury, unemployment or death you should consider the other forms of insurance listed below.
Like most personal insurance products, Mortgage Protection Insurance requires you to pay a premium either annually or monthly. The size of your Mortgage Protection Insurance premium will depend on the size of your home loan and how much of it you need to cover. Cover will vary depending on the provider, so be sure to read the Product Disclosure Statement carefully so you understand what you are covered for.