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.
Last updated: April 2026