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What is Mortgage Insurance or LMI?

Lenders Mortgage Insurance is an industry-standard arrangement that protects investors and funders against loss arising from the insufficiency of the security held to recoup amounts due under the contract. The cost of the Mortgage Insurance can be factored into the total finance facility.

Hejaz’s Sharia Advisors have approved the use of LMI on the basis that it is mandatory in the industry, particularly for higher risk financing where the amount of finance provided is in excess of 80% of the property purchase price.

Updated on May 14, 2022

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