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Lenders Mortgage Insurance (LMI) Calculator Australia

A lenders mortgage insurance calculator Australia helps home buyers estimate the cost of LMI when their deposit is less than 20% of the property value.

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How is LMI Calculated?

Lenders Mortgage Insurance is charged as a percentage of the loan amount, and that percentage rises steeply with your loan-to-value ratio (LVR). The higher you borrow against the property value, the more risk the insurer takes on — and the larger the premium.

Loan-to-Value Ratio (LVR)Typical LMI premiumWhat it means
80% – 85%≈ 0.5% – 1%Lowest LMI band — a small top-up above the 80% threshold.
85% – 90%≈ 1% – 2%Common first-home-buyer range with a 10% deposit.
90% – 95%≈ 2% – 4%Highest band — premiums rise sharply as the deposit shrinks.

Worked example: On a $450,000 loan at 90% LVR, LMI typically costs around $7,200 – $9,000 (roughly 1.6% – 2% of the loan). The premium can usually be capitalised into the loan, so you pay interest on it over the loan term.

LMI Providers by Lender

Most Australian lenders don't underwrite LMI themselves — they use a mortgage insurer such as Helia (formerly Genworth) or QBE. Because the same insurers sit behind many lenders, the premium for a given LVR is broadly similar across banks, but waivers and capitalisation rules vary.

LenderLMI providerNotes
ANZHelia (formerly Genworth)Standard LMI; premium capitalisation usually available.
CBACommInsure / Helia (Genworth)Uses an in-house arrangement underwritten via Helia.
WestpacHelia (formerly Genworth)Includes St.George, BankSA and Bank of Melbourne brands.
NABHelia (formerly Genworth)Offers LMI waivers for eligible medical professionals.
MacquarieQBE LMIQBE-underwritten premiums; waivers for select professions.
SuncorpQBE LMIQBE-underwritten; rates vary by LVR and loan size.

Figures are indicative 2025-26 Australian market estimates only. Actual LMI premiums depend on the lender, the mortgage insurer, your LVR, loan size and borrower profile. Confirm the exact premium with your lender or broker before committing.

People Also Ask

No, if your deposit is 20% or more of the property value, your LVR is 80% or lower, and lenders generally do not require LMI. This saves you thousands of dollars in premiums.
Yes, you can avoid LMI by saving a 20% deposit, using a guarantor loan where a family member provides equity from their property, or checking if your profession qualifies for an LMI waiver.
LMI for an investment property is not immediately tax deductible, but it can be added to the cost base of the property for capital gains tax purposes when you eventually sell.
LMI premiums vary by lender and LMI provider but are typically calculated as a percentage of the loan amount based on the LVR. Higher LVRs attract higher premium percentages and higher loan amounts increase the total cost.
4 min readLast updated: 2026-06-26

About the Lenders Mortgage Insurance (LMI) Calculator

A lenders mortgage insurance calculator Australia helps home buyers estimate the cost of LMI when their deposit is less than 20% of the property value. LMI protects the lender, not the borrower, but the cost is passed on to you. Understanding LMI costs is essential for Australian first-home buyers planning their deposit strategy and loan structure.

What is the Lenders Mortgage Insurance (LMI) Calculator?

This calculator estimates the lenders mortgage insurance premium payable when borrowing more than 80% of a property's value in Australia. LMI is a one-time premium paid by the borrower that protects the lender if the borrower defaults on the loan. The premium is calculated based on the loan-to-value ratio, the loan amount, and the lender's LMI provider rates. Higher LVRs result in significantly higher premiums. For example, borrowing at 95% LVR may incur an LMI premium of 3% to 4% of the loan amount, while borrowing at 90% LVR may incur around 1% to 2%. The calculator accounts for the fact that LMI can be capitalised into the loan, meaning you pay interest on the LMI premium over the life of the loan. It also considers that certain professions such as doctors, accountants, and lawyers may qualify for LMI waivers with some lenders. By estimating LMI costs upfront, borrowers can decide whether to save for a larger deposit or proceed with a higher LVR loan.

How to Use This Calculator

  1. 1Enter the property value: Input the purchase price or estimated market value of the property.
  2. 2Enter your deposit amount: Input the cash deposit you plan to contribute, excluding any grants or gifts.
  3. 3Enter the loan amount: Input the mortgage amount you need to borrow from your lender.
  4. 4Select your profession: Choose your occupation to check eligibility for professional LMI waivers offered by some lenders.
  5. 5Select whether LMI is capitalised: Choose whether you will pay LMI upfront or add it to your loan balance.
  6. 6Review your LMI estimate: The calculator displays the LMI premium amount and total loan amount if LMI is capitalised.

Worked Australian Example

Practical Example

Tom and Chloe are first-home buyers purchasing a house in Penrith, NSW for $750,000. They have saved a deposit of $60,000, which is 8% of the property value, requiring a loan of $690,000 at 92% LVR. Using the calculator, they enter $750,000 as property value, $60,000 as deposit, $690,000 as loan amount, and select standard employment with no professional waiver. The calculator estimates an LMI premium of approximately $20,700 (around 3% of the loan amount). If they capitalise the LMI, their total loan becomes $710,700, and they will pay interest on this amount over the loan term. They consider waiting until they have a 10% deposit ($75,000), which would reduce the LMI to an estimated $13,800 and save them $6,900. However, they decide to proceed now, knowing the LMI cost allows them to enter the market sooner. Their lender confirms the LMI estimate, and Tom and Chloe proceed with their purchase.

How Our Lenders Mortgage Insurance (LMI) Calculator Works

Lenders Mortgage Insurance is a one-off premium charged by your lender's insurer (typically Helia/Genworth or QBE) when your Loan-to-Value Ratio (LVR) exceeds 80%. There is no single government rate — premiums are set by the insurers and rise sharply as LVR and loan size increase. As a guide for the 2025-26 year: an 80–85% LVR attracts roughly 0.5–1% of the loan, 85–90% roughly 1–2%, and 90–95% roughly 2–4%. Step 1: We calculate your LVR by dividing the loan amount by the property value. Step 2: If LVR is 80% or below, LMI is $0; otherwise we match your LVR band and loan size to an indicative premium rate. Step 3: We apply that rate to your loan amount to estimate the premium, which is usually capitalised onto the loan. Official source: APRA and lender LMI premium guides (Helia, QBE). Premiums are estimates only — confirm the exact figure with your lender. Last updated: June 2025.

Common Lenders Mortgage Insurance (LMI) Calculator Questions

No, if your deposit is 20% or more of the property value, your LVR is 80% or lower, and lenders generally do not require LMI. This saves you thousands of dollars in premiums.
Yes, you can avoid LMI by saving a 20% deposit, using a guarantor loan where a family member provides equity from their property, or checking if your profession qualifies for an LMI waiver.
LMI for an investment property is not immediately tax deductible, but it can be added to the cost base of the property for capital gains tax purposes when you eventually sell.
LMI premiums vary by lender and LMI provider but are typically calculated as a percentage of the loan amount based on the LVR. Higher LVRs attract higher premium percentages and higher loan amounts increase the total cost.
Some LMI policies offer a refundable portion if you refinance or pay out the loan within the first two years. The refund is typically calculated on a sliding scale reducing over time.

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Reviewed by

BizMetrixs Team

Australian Financial Specialists

This LMI Calculator Australia calculator provides estimates only. Results are based on ATO 2025-26 published rates and general calculation methods. Individual circumstances may vary. This tool is for informational and educational purposes only and does not constitute financial, tax, or legal advice. For personalised advice, consult a registered tax agent or financial adviser.