The Multiple-Input Multiple-Output Orthogonal Frequency Division Multiplexing (MIMO-OFDM) scheme represents the dominant radio interface for broadband multicarrier communication systems. However, with insufficient Cyclic Prefixes (CP), Inter-Symbol Interference (ISI) and Inter-Carrier Interference (ICI) occur due to the time-varying multipath channel. This means that the performance of the system will be degraded. In this paper, we investigate the interference problem for a MIMO Discrete Wavelet Transform (MIMO-DWT) system under the effect of the downlink LTE channel. A Low-Density Parity-Check (LDPC) decoder is used to estimate the decoded signal. The proposed iterative algorithm uses the estimated decoded signal to compute the components required for ICI/ISI interference reduction. In this paper, Iterative Interference Cancellation (IIC) is employed to mitigate the effects of interference that contaminates the received signal due to multiple antenna transmission and a multipath channel. An equalizer with minimum mean square error is considered. We compare the performance of our proposed algorithm with the traditional MIMO-OFDM scheme in terms of bit error probability under insufficient CP. Simulation results verify that significant improvements are achieved by using IIC and MIMO-IIC for both systems.