I would bet that a lot of people are paying LMI but that only comes into play when you default anyway.
I just don't understand why you would even bother (if legal anyway) when someone is meeting their contractual obligations, it makes no sense.
Funny how it is, I was more worried about mortgages before I had one than when I actually got one
My LVR is less than 80% which means no LMI and a better rate so there is some risk I would be up for any shortfall should the worse happen.
Considering houses would have to plummet in value and I would have to default for that to be a issue, I'm not concerned about it much.