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LMI calculator — lenders mortgage insurance.

Lenders mortgage insurance (LMI) protects the lender, not you, if a borrower with a small deposit cannot repay. It is generally charged when your loan is more than 80% of the property’s value. Enter the purchase price and your deposit to see an estimate, and a table showing how the premium changes at 5%, 10%, 15% and 20% deposits.

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How this calculator works.

  1. The LVR is the loan divided by the purchase price, where the loan is the price less your deposit.
  2. At or under 80% LVR no LMI is charged.
  3. Above 80% the premium is the loan multiplied by a flat rate for the LVR band: 1.05% of the loan from 80% up to 85% LVR; 1.9% of the loan from 85% up to 90% LVR; 3.1% of the loan from 90% up to 95% LVR; 3.9% of the loan from 95% up to 100% LVR.
  4. The rates are indicative. Real premiums depend on the insurer, the lender, the loan size and the borrower, and this calculator does not model loan size.

What it assumes

  • LMI rates by band: 1.05% of the loan from 80% up to 85% LVR; 1.9% of the loan from 85% up to 90% LVR; 3.1% of the loan from 90% up to 95% LVR; 3.9% of the loan from 95% up to 100% LVR. None at or under 80% LVR.
  • The rates are a single flat schedule, not a lender quote or an insurer’s rate card.
  • The starting scenario is a purchase of $700,000 with a deposit of $70,000.
  • Assumptions last reviewed 25 September 2026.

Questions people ask.

What is lenders mortgage insurance?

LMI is a one-off insurance premium a lender charges when you borrow a high proportion of the property’s value. It covers the lender’s loss if you default and the sale does not clear the loan. You pay for it, but it does not protect you.

When do I have to pay LMI?

Generally when your loan is more than 80% of the property’s value, that is, when your deposit is less than 20%. The calculator charges nothing at or under 80% LVR.

How much is LMI?

With the starting scenario, a purchase of $700,000 with a deposit of $70,000, the calculator estimates about $11,970. It rises as your deposit falls, and the table on the page shows the estimate at 5%, 10%, 15% and 20% deposits.

Can I avoid paying LMI?

A deposit of 20% or more avoids it. Eligible first home buyers using the Home Guarantee Scheme can borrow up to 95% without LMI, and some lenders waive LMI for certain professions. Eligibility and terms vary, so ask a broker what is available to you.

Can LMI be added to my loan?

Many lenders let you capitalise LMI, adding it to the loan. That avoids paying it in cash at settlement, but it increases the loan and the interest you pay on it.

Is this the exact premium I will be charged?

No. It is an estimate from a flat rate by LVR band. Insurers and lenders price LMI differently and account for loan size and other factors, so the premium on your loan may be higher or lower.

More calculators.

LMI Calculator — Lenders Mortgage Insurance | Siare