How is LMI calculated?

LMI is calculated based on your Loan to Value Ratio (LVR) and loan amount. Higher LVRs mean higher LMI premiums. For example, a 95% LVR might cost 3-4% of the loan amount, while an 85% LVR might only cost 1-2%.

Can I avoid paying LMI?

Yes, you can avoid LMI by saving a 20% deposit (keeping LVR at or below 80%), using a guarantor (family guarantee), or qualifying for certain first home buyer schemes that waive LMI requirements.

Can LMI be added to the loan?

Yes, most lenders allow you to capitalize (add) the LMI premium to your loan amount. This means you don't pay it upfront, but you'll pay interest on it over the life of the loan, increasing the total cost.

LMI Calculator Australia

Calculate Lenders Mortgage Insurance costs and see how your deposit affects your home loan.

Lenders Mortgage Insurance Calculator

Find out how much LMI you'll pay if your deposit is less than 20%

Property & Loan Details

Property Value ($) Purchase price or valuation

Your Deposit ($) Amount you're putting down

Loan Term (Years) Loan duration

Interest Rate (%) Current home loan rate

Borrower Type May affect LMI rates

Capitalise LMI? Add LMI to loan amount

Your LMI Estimate

LMI Premium

One-time cost

Your LVR

Loan to Value Ratio

Total Loan Amount

Including LMI

Monthly Repayment

Principal & Interest

Important: LMI Protects the Lender, Not You

Even though you pay for LMI, it only protects the lender if you default. Consider saving a larger deposit to avoid this cost, or explore guarantor options with family members.

Your LVR Position

0-80%
No LMI

80-90%
Low-Medium LMI

90-95%+
High LMI

Your Current Position

Deposit (0% LVR)

To Reach 85% LVR

Deposit needed

Save $0 in LMI

To Avoid LMI (80%)

20% deposit needed

Save $0 in LMI

Loan Breakdown

Property Value $0

Your Deposit $0

Base Loan Amount $0

LMI Premium $0

                        Total Loan (with LMI)
                        $0
                    

Long-Term Impact

LMI Premium $0

Interest on LMI (if capitalised) $0

True Cost of LMI $0

Total Interest (loan life) $0

                        Total Repayments
                        $0
                    

LMI Premium Rates by LVR

LVR Range	Approx. Rate	Example ($800k property)	Deposit Required

* Rates are indicative only. Actual LMI premiums vary by lender and LMI provider (Genworth, QBE, etc.)

Deposit Comparison

Scenario	Deposit	LVR	LMI Cost	Monthly Payment

Loan Composition

Base Loan (0%)

LMI (0%)

Understanding LMI in Australia

What is LMI?

Lenders Mortgage Insurance (LMI) is a one-off insurance premium that protects the lender (not you) if you default on your home loan. It's required when:

Your deposit is less than 20%
Your LVR (Loan to Value Ratio) is above 80%
You're borrowing more than 80% of the property value

How to Avoid LMI

Save 20% deposit: The most straightforward way
Family guarantee: Use parents' property as security
First Home Guarantee: Government scheme for eligible buyers
Professional packages: Some lenders waive LMI for doctors, lawyers
Lender promotions: Occasional LMI-free offers

Should You Pay LMI?

Consider paying LMI if:

Property prices are rising faster than you can save
Rent costs exceed potential mortgage payments
You have stable income but limited savings
Interest rates are low and may rise

Avoid LMI if you can wait and save more.

LMI Providers in Australia

Genworth: Major LMI provider
QBE LMI: Second largest provider
Arch LMI: Growing provider
Premiums vary slightly between providers
Your lender chooses the LMI provider