LMI Calculator
Estimate your indicative Lenders Mortgage Insurance premium and loan-to-value ratio in seconds — so you know what a low-deposit purchase really costs.
🇦🇺 AustraliaHow this LMI calculator works
Lenders Mortgage Insurance protects your lender — not you — if you borrow a large share of the property's value and later default. In Australia, it's generally triggered once your loan-to-value ratio (LVR) climbs above 80%, meaning your deposit is less than 20%. The higher your LVR, the more risk the lender carries, and the steeper the premium becomes.
This tool calculates your LVR by dividing your loan amount by your property value, then applies an indicative premium rate based on the LVR band: no LMI at or below 80%, around 0.5% at 80–85%, rising through roughly 1.2% at 85–90% and 2.5% at 90–95%, up to about 3.5% above 95%. The premium shown is the loan amount multiplied by that band rate.
These figures are indicative only. Real LMI premiums are set by the mortgage insurer (such as Helia or QBE) using detailed risk tables, and they differ by lender, loan purpose (owner-occupier versus investor), loan type, and even the state's stamp duty on the premium. Many borrowers capitalise the premium onto the loan rather than paying it upfront, which increases the amount you repay over time.
Use this as a planning tool to compare deposit scenarios. Saving a little more to push your LVR under a threshold — or under 80% entirely — can remove the premium or move you into a cheaper band. For an accurate figure, ask your lender or broker for a quote tied to your exact loan.
Lenders Mortgage Insurance questions
LMI is a one-off insurance premium that protects the lender — not you — if you default and the property sells for less than the loan balance. In Australia it's typically required when you borrow more than 80% of the property value (an LVR above 80%). The premium can usually be paid upfront or capitalised onto the loan.
We calculate your loan-to-value ratio (LVR = loan amount ÷ property value), then apply an indicative premium rate based on the LVR band. Higher LVRs carry sharply higher rates because the lender takes on more risk. These rates are indicative only — actual LMI varies by lender and the specific insurer (Helia, QBE, etc.).
Generally at or below an 80% LVR. If your deposit is 20% or more of the property value, LMI is usually not required. Some lenders waive LMI for certain professions, and government schemes like the First Home Guarantee can let eligible buyers avoid it with a smaller deposit.
Actual LMI premiums are set by the mortgage insurer using detailed risk tables that factor in the exact loan amount, LVR, loan type, whether you are an owner-occupier or investor, and any stamp duty on the premium itself. This tool gives a planning estimate, not a quote — confirm the figure with your lender or broker.
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