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LMI Calculator
Estimate your lenders mortgage insurance premium and find out how to avoid it.
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| LVR band | Est. LMI rate | On $500k loan |
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Understanding Lenders Mortgage Insurance
Lenders Mortgage Insurance (LMI) is a one-off premium charged when you borrow more than 80% of a property's value. It protects the lender, not you - but you pay for it. On a $600,000 property with a 10% deposit, LMI can cost $8,000-$12,000 depending on the insurer and lender. At 95% LVR, that figure climbs to $15,000-$20,000.
The good news is that LMI can be avoided or significantly reduced. First home buyers with a 5% deposit may qualify for the First Home Guarantee, which eliminates LMI entirely - the government guarantees the gap between your deposit and 20%. Other options include family guarantees, where a parent's property secures the shortfall, or simply using lenders with lower LMI premiums.
LMI premiums vary significantly between lenders - sometimes by thousands of dollars for the same loan. Some lenders use QBE, others use Helia (formerly Genworth), and a few self-insure with different pricing altogether. Choosing the right lender based on LMI cost alone can save a first home buyer enough to cover their legal and moving costs.
How to use this calculator
Enter the property value and your deposit amount. The calculator estimates the LMI premium based on standard pricing. Note that actual premiums depend on the specific lender and insurer - this gives you a ballpark figure for planning purposes. For more detail, see our complete guide to LMI.
Want to know your exact LMI cost - or whether you can avoid it altogether? Book a chat and we'll check your eligibility for the First Home Guarantee and compare LMI premiums across lenders to find the lowest cost option for your deposit level.
Frequently asked questions
What is Lenders Mortgage Insurance (LMI)?
LMI is insurance that protects the lender - not you - if you default on your loan. It is required when your deposit is less than 20% of the property value (LVR above 80%). The premium is paid by you, either upfront or added to your loan balance.
How much does LMI cost in Australia?
LMI varies by lender, loan amount and LVR. At 90% LVR on a $600,000 loan the premium is approximately $8,000 to $12,000. At 95% LVR it rises to $15,000 to $20,000. The estimates above are based on published Helia and QBE rate cards - your actual premium may differ.
Can first home buyers avoid LMI?
Yes - through the First Home Guarantee (formerly the First Home Loan Deposit Scheme). Eligible first home buyers can purchase with a 5% deposit and the government guarantees the remaining 15%, meaning no LMI is required. Lendology manages the application process as part of your home loan.
Can LMI be added to the loan?
Yes - most lenders allow the LMI premium to be capitalised into your loan rather than paid as a lump sum upfront. This avoids the need for extra cash at settlement but increases your loan balance and the total interest you pay over the life of the loan.
Who are the LMI providers in Australia?
There are two main LMI providers in Australia - Helia (formerly Genworth) and QBE. Your lender chooses which provider they use. The premium rates are similar between providers but not identical. Lendology identifies the lender with the most favourable LMI terms for your situation.