Refinancing › Will I pay lenders mortgage insurance again when I refinance?

Will I pay lenders mortgage insurance again when I refinance?

If you owe more than 80 percent of your property value you may face lenders mortgage insurance again, and it is generally not transferable between lenders. If you are comfortably under 80 percent, you usually avoid it entirely.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

This is one of the most overlooked refinance traps. LMI does not move with you, so refinancing while still above 80 percent can mean paying it a second time, which can wipe out the rate saving. Knowing your loan to value ratio before you start is the key check.

The key points

Above 80 percent loan to value, LMI may apply again.
LMI is generally not transferable between lenders.
Under 80 percent, you usually avoid it.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.