LMI calculator
LMI calculator Australia
Estimate the Lenders Mortgage Insurance premium on your home or investment loan. Includes state stamp duty on the premium and the extra deposit needed to avoid LMI entirely.
LVR 80%–95% Owner-occ & investor State stamp duty
01 —INPUTS
Loan Details
Currently 10.00% of price. 20% deposit avoids LMI entirely.
Investor rates are ~9–10% higher than owner-occupier
02 —RESULTS
Estimated total LMI premium
$15,194
2.11% of loan · LVR 90.00% · Owner-occupier
03 —BREAKDOWN
Breakdown
Loan amount$720,000
Base LMI premium$13,939
Stamp duty on premium (NSW)$1,255
Total LMI payable$15,194
Avoid LMI: Deposit Target
Deposit for 80% LVR$160,000
Extra deposit needed$80,000
Saving an extra $80,000 eliminates $15,194 of LMI. Effective return on that extra deposit: ~18.99%.
Next step: Factor LMI into your full purchase costs with our mortgage calculator, or see the full picture with investment property cashflow.
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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
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20% deposit — The standard path. Takes longer but saves significant cost.
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Professional package — Doctors, dentists, lawyers, accountants, and some other professions qualify for LMI waivers up to 90% LVR with some lenders.
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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.
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Family guarantor loan — A parent or close relative uses their own property equity as additional security, bringing your LVR under 80%.
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Gifted deposit — A genuine gift from family (not a loan) can bridge the deposit gap.
FAQ
What is LMI (Lenders Mortgage Insurance)?
LMI is insurance the borrower pays to protect the lender if the borrower defaults and the sale of the property doesn't cover the loan. It's typically required when your loan-to-value ratio (LVR) exceeds 80% — i.e., deposit under 20%. LMI protects the lender, not you.
When is LMI payable in Australia?
Most lenders require LMI when the LVR exceeds 80%. Some low-deposit schemes, professional-package exemptions (doctors, lawyers, accountants), and the Home Guarantee Scheme can waive LMI with as little as 5% deposit — check with your lender or mortgage broker.
How is LMI calculated?
LMI is calculated as a percentage of your loan amount, with the rate rising sharply as LVR increases. At 85% LVR, the premium is roughly 1% of the loan; at 95% LVR, it can exceed 3.5%. Investor loans attract rates around 9–10% higher than owner-occupier loans. State stamp duty is added on top of the premium.
Can LMI be added to the loan?
Yes — most lenders allow you to capitalise LMI into the loan amount rather than paying it upfront. This increases the total loan balance slightly but avoids a large upfront cost. You'll pay interest on the LMI over the loan term as a result.
Is LMI tax-deductible?
For an investment property loan, LMI is a borrowing expense and is tax-deductible — claimed over five years, or the loan term if shorter. For an owner-occupied home, LMI is not deductible.
How can I avoid LMI?
Four main paths: (1) save a 20% deposit to bring LVR to 80% or below; (2) qualify for a professional-package exemption in a specific industry; (3) use the Home Guarantee Scheme (first home buyers, single parents) where the government guarantees the LMI gap; (4) get a family guarantor whose equity acts as additional security.
How accurate is this estimate?
This calculator uses publicly indicative Helia/QBE rates current in 2025. Actual LMI quoted by your lender can vary based on loan size, your credit profile, the property type, and the lender's specific insurer arrangements. Treat this as an indicative planning figure — always confirm with your lender or broker.
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.