Lenders Mortgage Insurance (LMI) refunds: What you need to knowIn some circumstances, it may be possible to partially recoup the cost of Lenders Mortgage Insurance (LMI) premiums. An LMI policy covers the entire loan term, usually 20 to 30 years. To avoid a new LMI policy, you'll need to have a lower loan balance or a higher property value than you started with. How to get an LMI refundIf you think you might be entitled to an LMI refund, you'll usually need to contact your lender rather than the insurer. Since the LMI policy is taken out by the lender, it's the party that needs to request a refund.