LMI Calculator Australia
On a $750,000 home with a 10% deposit this calculator estimates about $13,700 of lenders mortgage insurance. With a 20% deposit it's $0.
Work out how much LMI you're likely to pay from your property value and deposit: your LVR, an indicative premium range, the deposit that avoids LMI entirely, and what capitalising the premium into the loan really costs. Premiums are set by each lender's insurer — everything here is an indicative estimate, never a quote.
Indicative estimates modelled on published 2026 premium examples — your actual LMI is priced by your lender's insurer.
Deposit as a share of your property value (5%–25%), with the dashed line marking your current deposit. The steps are the 95%, 90% and 85% LVR premium cliffs; the curve hits $0 at a 20% deposit.
📐 How it worksWhat LMI is, and how this calculator estimates it
LMI protects the lender — you just pay for it
Lenders mortgage insurance is a one-off premium most Australian lenders charge when you borrow more than 80% of the property's value. It insures the lender: if you default and the sale doesn't cover the loan, the insurer pays the lender's shortfall — and can then pursue you for it. What LMI buys you is access: it's the reason lenders will write loans at 85%, 90% or 95% LVR at all.
Why no calculator can quote your exact premium
Two insurers — Helia (formerly Genworth) and QBE — write most Australian LMI, and each lender prices from its own agreed premium table. Those tables are proprietary and differ enough that two lenders can quote thousands apart for the same loan. So this calculator does what a broker's rule-of-thumb table does: it models an indicative premium and shows a ±15% range to reflect the spread. Your lender's quote is the only exact figure.
The rate model behind the estimate
The model is calibrated to reproduce published 2026 guide figures for a $600,000 property — ≈ $5,100 at 85% LVR, ≈ $10,400 at 90% and ≈ $25,000 at 95% — and then scales with your loan size. The rates below are the owner-occupied base for loans of $300,000–$600,000:
| LVR | Premium (% of loan) |
|---|---|
| 80% or below | Nil — no LMI |
| 80.01% – 85% | 0.50% rising to 1.00% |
| 85.01% – 88% | 1.05% rising to 1.40% |
| 88.01% – 90% | 1.70% rising to 1.93% |
| 90.01% – 95% | 3.30% rising to 4.39% |
| Above 95% | Generally not available without a guarantor |
Loans under $300,000 are scaled down about 15%; loans over $600,000 are scaled up 5–15% in steps ($600k–$750k, $750k–$1m, above $1m). Investment loans are loaded 15%, matching the typical 10–20% insurer loading. State stamp duty on insurance applies to LMI premiums and varies by state — lender quotes normally include it, and it's one reason quotes differ between states.
📉 The cliffsWhy 85%, 90% and 95% LVR matter so much
Premium tables don't rise smoothly — they step up hard at 85%, 90% and 95% LVR, because the insurer's expected loss climbs steeply as the deposit shrinks. The published 2026 figures for a $600,000 property make the point:
| Deposit | LVR | Indicative LMI |
|---|---|---|
| $120,000 (20%) | 80% | $0 |
| $90,000 (15%) | 85% | ≈ $5,100 |
| $60,000 (10%) | 90% | ≈ $10,400 |
| $30,000 (5%) | 95% | ≈ $25,000 |
Each 5% of deposit you give up roughly doubles the premium — and the last step, from 90% to 95% LVR, more than doubles it. Read backwards, that's the opportunity: a comparatively small extra deposit just before a cliff saves a disproportionate amount of LMI.
The same effect on this page's default example
On a $750,000 property with a $75,000 deposit (90% LVR) the calculator estimates about $13,700. An extra $37,500 of deposit — 15% down, 85% LVR — cuts that to about $6,700: a $7,000 saving. Reach $150,000 (20% down) and the premium disappears entirely. Switch to the Advanced level to see this table for your own numbers, and watch the curve on the chart step down at each cliff.
If your deposit lands just past a cliff, it's also worth pricing a slightly cheaper property: dropping the purchase price can pull your LVR under a band boundary and save more in LMI than it costs you in choice.
🛡️ Avoiding LMIFour legitimate ways to pay less LMI — or none
1. A 20% deposit
At or below 80% LVR no lender requires LMI, and you'll generally be offered sharper rates too. The results panel shows the exact deposit that gets you there for your property value.
2. The First Home Guarantee
Housing Australia guarantees part of an eligible first home buyer's loan, so participating lenders accept a 5% deposit with no LMI. At 95% LVR on a $600,000 purchase that's roughly $25,000 avoided — the single most valuable LMI concession going. Eligibility rules and property price caps apply; model the whole purchase with the First Home Buyer Calculator.
3. Professional waivers
Several lenders waive LMI for doctors and other medical professionals, and some extend versions of the waiver to lawyers, accountants and other high-income professions — typically up to 90–95% LVR. If you're in one of these fields, ask directly or via a broker: the waiver can be worth more than any rate discount on offer.
4. A family guarantee
A parent's property secures the portion of your loan above 80% LVR, so the lender treats the loan as effectively at or below 80% and charges no LMI. The guarantor takes on real risk — limited guarantees and a plan to release the guarantee early both matter. The LVR Calculator models guarantor support.
What doesn't work: waiting to refinance. LMI doesn't transfer between lenders, so refinancing while still above 80% LVR means paying it again. The premium only stops being an issue once repayments or price growth take your LVR under 80%.
🧾 The fine printCapitalising the premium, refunds, and tax
Capitalising: convenient, but not free
Most lenders let you add the LMI premium to the loan rather than paying it at settlement. Your cash stays in your pocket — but the premium accrues interest for the life of the loan. On this page's default example, a premium of about $13,700 capitalised at 6% p.a. over 30 years adds about $82 a month, or roughly $29,500 of repayments in total — more than double the premium itself. Capitalising also nudges the LVR up slightly, which can feed back into the premium; your lender recalculates the exact figure. Turn on the capitalise toggle (Standard level) to run the maths at your own rate and term.
Refunds: assume nothing
LMI is a one-off premium and generally not refundable. Some insurers offer a partial refund if the loan is paid out very early — typically within roughly the first two years — but terms differ and many borrowers receive nothing. It also doesn't transfer on refinance. Treat LMI as a sunk cost from the day you pay it.
Tax: deductible for investors, not for your home
For an owner-occupied home LMI is not deductible. For an investment property, LMI is a borrowing expense: under standard ATO treatment, borrowing costs over $100 are deductible over five years or the loan term, whichever is shorter, apportioned in the first year. That materially cuts the after-tax cost for investors — confirm your own position with a registered tax agent.
Don't confuse it with mortgage protection insurance
Mortgage protection insurance is a separate, optional product that covers your repayments if you die, become seriously ill or lose your job. LMI gives you no personal cover at all — it exists solely to protect the lender.
❓ FAQFrequently asked questions
What is LMI and who does it protect?
Lenders mortgage insurance (LMI) is a one-off insurance premium most Australian lenders charge when you borrow more than 80% of a property's value. Despite you paying it, LMI protects the lender, not you: if you default and the sale of the property doesn't cover the loan, the insurer pays the lender's shortfall — and can then pursue you for that money. Most Australian LMI is written by Helia (formerly Genworth) or QBE, and each lender prices from its own agreed premium table.
How much is LMI on a typical home loan?
It depends on your LVR, loan size, lender and insurer. Published 2026 guide figures for a $600,000 property: roughly $5,100 with a 15% deposit (85% LVR), roughly $10,400 with a 10% deposit (90% LVR), and roughly $25,000 with a 5% deposit (95% LVR). As a share of the loan, indicative premiums run from about 0.5–1% up to 85% LVR to about 3.3–4.4% between 90% and 95% LVR, scaling modestly upward with loan size. Premium tables are proprietary, so treat any figure as an estimate rather than a quote.
How can I avoid paying LMI?
Four main routes. Save a 20% deposit, so your LVR is 80% or below — no lender requires LMI there. Use the First Home Guarantee if you're eligible: Housing Australia guarantees part of the loan so participating lenders accept a 5% deposit with no LMI. Ask about professional LMI waivers — doctors and some lawyers and accountants can have LMI waived at up to 90–95% LVR with certain lenders. Or use a family guarantee, where a parent's property secures the gap so the lender treats the loan as effectively at or below 80% LVR.
Why do LMI premiums jump at 90% and 95% LVR?
Insurer premium tables are banded, not smooth, and the bands step up hard at 85%, 90% and 95% LVR because the insurer's expected loss rises sharply as the deposit shrinks. On a $600,000 property, moving from a 15% deposit to a 10% deposit roughly doubles the premium (about $5,100 to about $10,400), and moving from 10% to 5% more than doubles it again (to about $25,000). If your deposit puts you just above one of these cliffs, a relatively small extra deposit saves a disproportionate amount of LMI.
Can I add LMI to my home loan instead of paying upfront?
Usually, yes — it's called capitalising the premium, and most lenders allow it. It preserves your cash at settlement, but the premium then accrues interest for the life of the loan: a $13,700 premium capitalised at 6% p.a. over 30 years adds about $82 a month, or roughly $29,500 of repayments in total. Capitalising also nudges your LVR up slightly, which can itself affect the premium — your lender recalculates the exact figure.
Is LMI tax-deductible?
For your own home, no. For an investment property, LMI is treated as a borrowing expense: under standard ATO treatment, borrowing costs over $100 are deductible over five years or the term of the loan, whichever is shorter, apportioned for the first year. That makes LMI materially cheaper after tax for investors — but confirm your own position with a registered tax agent.
Can I get an LMI refund if I refinance or pay off the loan early?
Rarely, and only partially. LMI is a one-off premium and doesn't transfer between lenders — if you refinance while still above 80% LVR, you pay LMI again at the new lender. Some insurers offer a partial refund where the loan is paid out very early, typically within roughly the first two years, but terms differ between insurers and many borrowers receive nothing. Never build a refund into your plans.
Do first home buyers have to pay LMI?
Not necessarily. Under the First Home Guarantee, Housing Australia guarantees part of an eligible first home buyer's loan so a participating lender will accept a deposit as low as 5% without charging LMI — on a $600,000 purchase at 95% LVR that's roughly $25,000 avoided. Eligibility criteria and property price caps apply and change over time, so check the scheme's current settings before you rely on it.
Is LMI the same as mortgage protection insurance?
No, and the two are easily confused. LMI protects the lender against a shortfall if you default. Mortgage protection insurance is a separate, optional policy that protects you — it can cover your repayments if you die, become seriously ill or lose your job. Paying LMI gives you no personal cover at all.
Does stamp duty apply to LMI premiums?
Yes. State governments levy stamp duty on insurance premiums, and that includes LMI, with the rate varying by state and territory. Lender quotes normally show the premium with duty (and GST) included, which is one reason quotes for the same loan can differ between states. This calculator's estimate is indicative of the all-in cost — your lender's quote is the definitive figure.