LMI calculator Australia — mortgage insurance cost by deposit

How much is LMI? Premium estimates by purchase price and deposit

Owner-occupier estimates from the same model as the calculator above, so the published figures and the tool always agree. Investment lending prices higher for the same loan-to-value ratio. These are market-level planning estimates, not Helia, QBE or lender quotes.

Read the table across, not down. Premiums step at the 85%, 90% and 95% LVR edges rather than tapering with every dollar saved, which is why the last few thousand dollars of deposit can be worth far more than the first. On a $700,000 purchase, moving from a 10% to a 15% deposit costs $35,000 more up front and cuts the estimated premium from $12,285 to $5,058 — about $7,227 saved.

General information only — not personal credit advice or an insurance quote. Actual premiums vary by insurer, lender, loan purpose, employment type and whether the premium is capitalised. First-home buyers using the Australian Government 5% Deposit Scheme, eligible professionals with a waiver, and borrowers with a family guarantor may pay no LMI at all.

LMI calculator for VIC, NSW and QLD

There is no separate state insurer table for this planning tool — enter a Victorian, New South Wales or Queensland purchase price the same way. State differences show up in typical prices, stamp duty on capitalised LMI where it applies, and first-home or guarantee schemes that can reduce or remove LMI. For waivers and schemes see the LMI waivers guide and the definitional what is LMI explainer.

Who does not have to pay LMI?

LMI is charged because the loan-to-value ratio is above roughly 80%, so anything that removes the lender’s exposure above that line can remove the premium. There are four common paths, and the calculator above lets you model the first three.

• A 20% deposit. The straightforward route. At 80% LVR or below, mainstream lenders do not charge LMI at all — which is why the final column of the table above reads “No LMI” rather than a dollar figure.
• The Australian Government 5% Deposit Scheme. Renamed from the First Home Guarantee on 1 October 2025, when the income caps and the 35,000-place annual limit were both removed. Eligible first-home buyers can borrow with a 5% deposit and pay no LMI, because Housing Australia guarantees part of the loan. Single parents and legal guardians need only 2%. Property price caps still apply and differ by state, and you apply through a participating lender rather than to Housing Australia directly.
• A family guarantor. A parent or close family member offers equity in their own property as additional security, bringing the effective LVR under 80%. It avoids the premium but puts the guarantor’s property at risk, so it warrants proper structuring and independent legal advice.
• A professional waiver. Some lenders waive LMI up to 85%, 90% or occasionally 95% LVR for borrowers in professions they treat as low-risk — medical, and depending on the lender, legal, accounting and some nursing roles. Eligibility is lender-specific policy, not an industry rule, and it changes without notice.

One point worth being clear about: LMI protects the lender, not you. If the property is sold at a loss after a default, the insurer pays the lender and can then pursue you for the shortfall.

Should you pay LMI in cash or capitalise it?

Most Australian lenders let you add the premium to the loan instead of paying it at settlement. Capitalising preserves cash, but you then pay interest on the premium for as long as the loan runs. On a premium of around $12,000 at current rates over 30 years, that can roughly double the real cost — the calculator above shows the extra interest for your own figures.

Two constraints catch people out. Capitalising increases the loan, so the resulting LVR must still sit inside the lender’s maximum — at 95% LVR there is often not enough headroom, and the premium has to be paid in cash. And in several states, stamp duty applies to capitalised LMI, because duty is calculated on the insurance premium. Because Australia is in a rate-hiking cycle, with the cash rate at 4.35% after three increases during 2026, the interest cost of capitalising is higher than it was through the last easing period.