Basics11 min readUpdated
LMI calculator Australia — how much is lenders mortgage insurance, who pays, and how to think about it
Lenders mortgage insurance (LMI) in Australia means insurance that protects the lender on high-LVR loans — the borrower usually pays. Use the free LMI calculator for an estimate, compare cash vs capitalised paths, then speak to a broker if you want a formal quote or scheme alternative.
Lenders mortgage insurance () in Australia means insurance that protects the lender if a high- loan defaults and sale proceeds fall short — the borrower usually pays the premium. Whether LMI applies depends on loan size, LVR tier, and lender or insurer policy. Azure Home Loans helps compare capitalised versus upfront LMI and scheme alternatives before you lodge. Premiums below are estimates until a formal quote.
Start here: the dedicated LMI calculator is the canonical tool for pricing a premium by deposit and LVR. The same interactive estimator also sits at the top of this guide if you want numbers beside the explainer. It models your premium by LVR, checks whether a professional waiver or a guarantee / guarantor pathway could remove it, compares cash vs capitalised, and shows what the next deposit milestone saves. Read the table and decision framework below once you have your number.
How much is LMI? Illustrative cost table (2026)
Indicative owner-occupier premiums from Azure Home Loans’ LMI estimator (same model as the calculator on this page). Not insurer quotes. Excludes stamp duty on LMI (may apply in some states such as VIC or QLD; NSW typically does not). As at August 2026.
| Property value | 5% deposit | 10% deposit | 15% deposit | 20% deposit |
|---|---|---|---|---|
| $500,000 | ~$16,200 | ~$9,200 | ~$3,800 | $0 |
| $600,000 | ~$18,500 | ~$10,500 | ~$4,300 | $0 |
| $700,000 | ~$21,600 | ~$12,300 | ~$5,100 | $0 |
| $800,000 | ~$23,700 | ~$14,000 | ~$5,800 | $0 |
| $900,000 | ~$26,700 | ~$15,200 | ~$6,200 | $0 |
Read the rows sideways rather than down. Premiums step at LVR band edges (95%, 90%, 85%, 80%) instead of sliding smoothly, so the last few thousand dollars of deposit before a band edge are worth far more than the first few thousand. On a $700,000 purchase, moving from a 10% to a 15% deposit costs $35,000 in savings but removes roughly $7,200 of premium.
Run your exact price and deposit in the calculator, then email the LMI decision worksheet PDF — it includes cash vs capitalise interest over 5 and 7 years at an illustrative rate, plus the deposit ladder above priced for your property.
Who actually provides LMI in Australia (Helia, QBE, and lender self-insurance)
You do not choose your LMI provider — the lender does. That is worth understanding, because it explains why the same deposit produces different premiums at different banks.
There are three routes a premium can take:
- Helia (listed as Genworth Mortgage Insurance Australia until its 2021 rename) is one of the two dedicated LMI underwriters in the Australian market. Several major and non-major lenders place their high-LVR business with Helia.
- QBE Lenders' Mortgage Insurance is the other dedicated underwriter, used by a different set of lenders.
- Lender self-insurance — some larger lenders carry the risk on their own balance sheet instead of placing it with an external insurer. They may call the charge a "low deposit premium", a "risk fee", or a similar in-house name rather than LMI.
People search for a Helia LMI calculator or a QBE LMI calculator expecting to price their own premium directly. In practice the insurers publish rate tables to lenders and brokers rather than to consumers, and the quoted premium depends on the lender's own arrangement with the insurer — including negotiated discounts, loan size caps, and postcode restrictions that never appear in a public tool.
What this means for you: the number in the calculator on this page is a market-level estimate across the LVR bands. The binding number comes from the lender you actually apply to. If your LVR sits close to a band edge, it is worth having a broker compare quotes across lenders using different insurers before you commit — the gap between two lenders on an identical file can run into thousands.
LMI by state: what changes and what does not
This surprises people, so it is worth being direct about it.
The premium itself is not set by state. LMI is priced on your loan-to-value ratio, loan size, loan purpose, and employment type. A $600,000 loan at 90% LVR attracts broadly the same base premium in Perth as it does in Sydney. There is no separate NSW rate table.
Three things do change by state:
- Property prices, and therefore loan size. This is the real driver. A 10% deposit in Sydney buys a much larger loan than a 10% deposit in Adelaide, and the premium scales with the loan — so the same percentage deposit produces a very different dollar premium.
- Stamp duty on the premium. LMI is an insurance product, and some states levy insurance duty on it. Victoria and Queensland typically apply duty; New South Wales typically does not. Duty is added on top of the figures in the table above, so confirm the final number with your lender.
- First home buyer schemes and concessions. Whether you need LMI at all can turn on a place in the Home Guarantee Scheme, or on how far a state concession stretches your deposit. See the first home buyer guide for the state-by-state position.
So when you search for an LMI calculator NSW, VIC, or QLD, what you actually need is a calculator that prices your loan size and LVR correctly, then a check on whether duty applies in your state. The calculator on this page does the first part; a broker confirms the second.
What LMI actually does
LMI protects the lender (or a dedicated insurer in the chain) against a shortfall if a loan goes into enforcement and the property sale does not recover the outstanding debt. It does not protect you as the borrower the way personal mortgage protection insurance might.
That is why lenders treat LVR, loan purpose, and postcode risk carefully before approving high-LVR deals.
When lenders typically require LMI
Most people meet LMI when borrowing above mainstream “no LMI” LVR bands without another mitigant (such as a government scheme where it applies, or certain professional packages — availability varies). 80% LVR is a common mental anchor for owner-occupiers, but it is not universal.
Your deposit guide walks through LVR maths. Pair with the first home buyer guide if you are still mapping deposit, duty, and schemes together.
Capitalise vs pay upfront
Premium treatment matters for cash at settlement and interest if the premium is added to the loan:
- Upfront (cash) — pay the premium at settlement; loan stays at base LVR maths; no interest accrues on the premium itself.
- Capitalised — premium is added to the loan balance; you repay it over time with interest, subject to product rules.
- Hybrid — less common; ask on your file.
The calculator shows illustrative extra interest over 5 and 7 years if you capitalise — use that, not just the first monthly repayment.
How to reduce or avoid commercial LMI
Paths that may suit some borrowers (always scenario-dependent):
- Grow deposit toward 20% — trade time and rent against premium and price movement.
- First Home Guarantee (5% deposit scheme) — eligible buyers may borrow with a lower deposit without commercial LMI under the federal guarantee — confirm caps and places on firsthomebuyers.gov.au.
- Family guarantor — can reduce insurer requirement; places real risk on the guarantor.
- Professional / LMI waiver packages — limited lenders and occupations; see LMI waivers.
- Compare lenders — insurer and policy differ; one panel can quote materially differently for the same LVR.
LMI is not the only “extra” cost
Buyers who fixate on LMI sometimes forget stamp duty, adjustments, and lender fees — our first home costs article keeps those in one picture. NSW purchasers: LMI premium maths is still national insurer logic; what differs by state is often duty and concessions, not the core LMI concept.
Refinancing with an LMI history
Refinancing does not refund historical premiums. Whether new LMI applies depends on LVR at the new lender, loan amount, and insurer policy. Some borrowers wait for equity growth; others accept a new premium if interest savings still win over their horizon. Pair with refinance beyond the monthly payment.
Mental models that work
Useful: treat LMI as a known dollar cost to enter the market sooner, traded against rent, price paths, and personal stability.
Unhelpful: calling LMI “bad” or “good” without numbers on your file.
Paying LMI does not relax borrowing capacity tests — serviceability still rules.
Questions worth asking your broker
- What is the quoted LMI premium for this loan size and LVR — capitalised or cash?
- How does total interest compare over five and seven years if the premium sits on the loan?
- Could FHBG, a guarantor, or a professional package change the insurance requirement — and what are the trade-offs?
- If I pay down or revalue, when does the profile look meaningfully different?
Bottom line
LMI is how lenders price higher-LVR risk. Your job is to map the dollars, stress-test the budget, and pick a path you can live with — calculator first, formal quote second. Speak to a broker when you want Azure Home Loans to check live policy on your scenario.
FAQ
What is lenders mortgage insurance (LMI)?
LMI is insurance that protects the lender (or an insurer in the chain) against a shortfall if a mortgaged property is sold in enforcement and the proceeds do not cover the outstanding debt. It does not insure you as the borrower against hardship, unemployment, or market falls.
Who pays for LMI?
In most Australian home-loan scenarios the borrower pays the premium, even though the policy benefits the lender. How you pay — capitalised into the loan, upfront at settlement, or a blend — depends on the product and your cash position.
How much is LMI on a 10% deposit?
It depends on the property price and LVR band. On this page’s owner-occupier table (August 2026 model), a 10% deposit is about $9,200 on $500,000, $10,500 on $600,000, $12,300 on $700,000, and $14,000 on $800,000. Those are estimates — the LMI calculator prices your exact deposit.
How much is LMI on a $500,000 loan?
Treat “loan” and “property” carefully. If the property is $500,000, the table shows roughly $16,200 at 5% deposit, $9,200 at 10%, and $3,800 at 15% (owner-occupier, August 2026 model). A $500,000 loan on a more expensive property is a different LVR. Run the calculator with purchase price and deposit.
Do you pay LMI with a 20% deposit?
Often no on mainstream owner-occupier products — 80% LVR is the usual “no LMI” line. It is not universal. Some lenders, purposes, postcodes or credit profiles still require LMI or another mitigant. Confirm on a quote for your file.
How much is LMI on 700k?
On a $700,000 property in the table: about $21,600 at 5% deposit, $12,300 at 10%, and $5,100 at 15%. A 20% deposit is modelled as $0 LMI on that row. Confirm with the calculator and a lender quote.
How much is LMI on a $600,000 property?
Using the illustrative table on this page (owner-occupier, August 2026 model): roughly $18,500 at 5% deposit, $10,500 at 10%, and $4,300 at 15%. Your lender’s insurer quote can differ — run the calculator for your numbers and confirm on a formal application.
Is there a Helia or QBE LMI calculator I can use?
Not a public one that gives you a binding figure. Helia and QBE are the two dedicated LMI underwriters in Australia, but they publish their rate tables to lenders and brokers rather than to consumers, and the premium your lender quotes reflects its own arrangement with the insurer. Use the calculator on this page for a market-level estimate across the LVR bands, then have the lender or your broker confirm the exact premium for the insurer they use.
Does LMI cost more in NSW, VIC or QLD?
The premium itself is not priced by state — it is driven by your LVR, loan size, loan purpose and employment type, so the same loan attracts broadly the same base premium anywhere in Australia. What differs is that property prices change your loan size, and some states levy stamp duty on the insurance premium (Victoria and Queensland typically do; New South Wales typically does not). Confirm the duty position with your lender, because it is added on top of the estimate.
Do I need LMI if I borrow at 80% LVR?
Often not for mainstream owner-occupier products — 80% LVR is a common “no LMI” mental anchor — but it is not universal. Some lenders, loan purposes, postcodes, or credit profiles may still require LMI or another mitigant. Confirm on a formal quote for your file.
Should I capitalise LMI or pay it upfront?
It depends. Capitalising preserves cash at settlement but may increase the loan balance and interest paid over time. Paying upfront avoids interest on the premium but needs spare funds. Compare total cost over your intended hold period — the calculator’s 5- and 7-year interest delta is a starting point.
How does the First Home Guarantee (FHBG) relate to LMI?
Scheme pathways such as the First Home Guarantee may reduce or remove the need for commercial LMI when you meet eligibility rules — subject to scheme caps, lender participation, and current government settings. See the first home buyer guide and firsthomebuyers.gov.au; eligibility always needs a current check.
Which professions can get an LMI waiver?
Some lenders publish reduced-or-nil LMI for defined cohorts — most commonly doctors, dentists and medical specialists (often to 90–95% LVR), with narrower programs for registered nurses and midwives, solicitors and barristers, and accountants holding current CA, CPA or IPA membership (typically to around 90%). Programs are owner-occupier products in most cases and are never automatic: registration, income floors, loan-size caps and the lender's current published list all decide it. Select your profession in the calculator above to see the premium a waiver would remove, then read LMI waiver pathways for the lender-by-lender detail.
Can I refinance away LMI I already paid?
Refinancing does not refund historical LMI premiums. Whether new LMI applies on the replacement loan depends on the new LVR, loan amount, and the new lender’s insurer policy.
Does NSW have different LMI rules?
LMI premium maths is driven mainly by loan size, LVR tier, and insurer/lender pricing — not by which Australian state the property sits in. NSW purchases still face the same high-LVR insurance logic; stamp duty and concessions differ by state. Always confirm the quoted premium for your actual loan.
General information only. Premiums, policies, and laws change. Confirm details on formal loan documentation and with your broker or lender. Indicative calculator outputs are estimates — not guaranteed quotes. Azure Home Loans — licence details in the site footer.
Related guides
- Dedicated LMI calculator
- Calculators hub
- Home loans overview
- First home buyer service
- First home buyer guide
- LMI waivers / professional pathways
Next step: Speak to a broker · Apply pathway
Azure Home Loans — general information only, not personal credit advice.
Estimate LMI, then email the PDF
Run property value and deposit on the dedicated LMI calculator — then email yourself the illustrated premium estimate.
First home buyers
Funds to complete worksheet
Enter a purchase price and deposit for an illustrative total — duty and LMI are estimates only. Confirm with your state revenue office and broker before you exchange.
$158,500
Illustrative funds to complete (not a quote)
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