Risk Fee
Some lenders' alternative to LMI. Different structure, similar economics.
What is Risk Fee?
A risk fee is charged by some lenders as an alternative to LMI when lending at high LVRs. Structurally different from LMI (it's a lender fee, not an insurance premium), but economically similar — protecting the lender from higher-LVR risk.
Why it matters for you
Risk fees and LMI are priced differently — sometimes one is cheaper than the other at the same LVR, depending on lender and loan size. Matters less for medico clients who typically avoid both under policy waivers.