LMI Calculator
Estimate your Lenders Mortgage Insurance premium based on your property value and deposit.
Disclaimer: This calculator provides estimates for general information purposes only. Results may not be 100% accurate and should not be relied upon for financial decisions. Tax rules, rates, and thresholds change — always verify with the ATO, official government sources, or a qualified financial adviser, tax professional, or accountant. This is not financial advice.
What is LMI?
Lenders Mortgage Insurance (LMI) is a one-off insurance premium that protects the lender (not you) if you default on your home loan. It applies when your deposit is less than 20% of the property value — i.e. when your loan-to-value ratio (LVR) exceeds 80%.
When do you pay LMI?
- LVR 80% or below: No LMI required
- LVR 80-85%: LMI applies (~1% of loan)
- LVR 85-90%: Higher LMI (~2% of loan)
- LVR 90-95%: Significant LMI (~3.5% of loan)
- Above 95%: Most lenders won't approve
How to avoid LMI
The simplest way to avoid LMI is to save a 20% deposit. Some alternatives include guarantor loans (where a family member provides security), government schemes like the First Home Guarantee, or professional packages offered by some lenders to specific occupations.
LMI premiums vary by insurer (Helia, QBE), loan size, and borrower profile. This calculator provides estimates for planning purposes. Your lender will confirm the exact premium at application.
See the full cost of buying
JettWorth calculates stamp duty, LMI, and mortgage repayments together — then shows how a property purchase impacts your 10-30 year net worth projection.
Model it in JettWorth — free