LMI Calculator Australia
Estimate the Lenders Mortgage Insurance premium on your home or investment loan. Enter your property price, deposit, and state — this calculator returns the base premium, the state stamp duty on top, and how much extra deposit would eliminate LMI entirely.
Loan Details
Currently 10.00% of price. 20% deposit avoids LMI entirely.
Investor rates are ~9–10% higher than owner-occupier
Breakdown
Avoid LMI: Deposit Target
How LMI Premiums Scale with LVR
LMI rates rise non-linearly with LVR. Every 1% higher LVR meaningfully increases the premium, and there are cliffs at 85%, 90%, and 95% LVR.
| LVR | Owner-occupier (% of loan) | Investor (% of loan) |
|---|---|---|
| 81% | 0.57% | 0.62% |
| 85% | 1.24% | 1.35% |
| 90% | 1.94% | 2.12% |
| 92% | 2.82% | 3.09% |
| 95% | 3.46% | 3.78% |
Tip: The cliff from 90% to 91% LVR adds ~0.6% of the loan to your premium — on a $500k loan, that's $3,000+. If you're close to a cliff, the extra few thousand in deposit pays for itself many times over.
Worked Example: $800k Sydney Purchase, 10% Deposit
- Property price: $800,000
- Deposit: $80,000 (10%)
- Loan amount: $720,000
- LVR: 90%
- Owner-occupier LMI rate: 1.94%
- Base premium: $720,000 × 1.94% = $13,940
- NSW stamp duty on premium (9%): $1,255
- Total LMI: $15,195
- Extra deposit to reach 80% LVR: $80,000
Saving another $80,000 avoids $15,195 in LMI — an effective 19% return on the deposit increase. For most buyers this is a strong argument for delaying the purchase to build deposit.
How to Avoid LMI
- 20% deposit — the standard path. Takes longer but saves significant cost.
- Professional package — doctors, dentists, lawyers, accountants, and some other professions qualify for LMI waivers up to 90% LVR with some lenders.
- Home Guarantee Scheme — the federal government guarantees the LMI-gap for eligible first home buyers and single parents, requiring as little as 5% deposit with no LMI.
- Family guarantor loan — a parent or close relative uses their own property equity as additional security, bringing your LVR under 80%.
- Gifted deposit — a genuine gift from family (not a loan) can bridge the deposit gap.
Frequently asked questions
What is LMI (Lenders Mortgage Insurance)?
When is LMI payable in Australia?
How is LMI calculated?
Can LMI be added to the loan?
Is LMI tax-deductible?
How can I avoid LMI?
How accurate is this estimate?
Tax Accuracy & Sources
LMI rates used in this calculator are publicly indicative Helia/QBE rates current in 2025. Actual lender LMI quotes vary by loan size, borrower profile, property type, and insurer. Stamp duty on LMI premiums varies by state and is based on general insurance duty rates. Always confirm with your lender or mortgage broker.