Lender Mortgage Insurance is applicable to Borrowers who loan more than 80% of the value of security for fully verified loans and from 60% for Low Doc Loan. First you must calculate the Loan to Value Ratio Ratio (LVR) to determine what whether or not LMI is applicable.  

For example a fully verified applicant seeking a loan of $85,000 secured by a property valued at $100,000, would be 85% LVR and therefore LMI is applicable. If a self employed applicant who is self certifying their income (Low/No Doc Loan), and seeking a loan or $65,000 secured by a property valued at $100,000, the LVR would be 65% and therefore LMI is applicable. In most cases, the applicant is required to pay the LMI which is usually funded within the loan.