LMI is insurance that protects the lender (not you) if you default on a loan with less than 20% deposit. Despite protecting the lender, the cost is charged to you — typically $10,000–$35,000+ depending on your loan size. The main ways to avoid LMI: save a 20% deposit; qualify for the Home Guarantee Scheme (5% deposit, no LMI); or be an eligible medical professional (LMI waiver available up to 95% LVR). Paddy explains all options specific to your situation.