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Lenders mortgage insurance (LMI) calculator
An indicative LMI premium from price and deposit, using a typical insurer schedule by LVR band and loan size, and the loan with the premium added.
Lenders mortgage insurance (LMI) calculator
Lenders mortgage insurance
Enter your figures to see the result.
Lenders mortgage insurance protects the lender, not the borrower, when a loan is more than 80% of the property's value. The borrower pays for it, usually by having the premium added to the loan. It is one of the largest costs a low-deposit buyer meets and one of the least visible, because it rarely appears in a listing or a conversation with an agent.
How the calculator works
From the price and deposit it works out the loan-to-value ratio. At or below 80% there is no premium. Above it, a premium rate is looked up by LVR band and loan size and applied to the loan. The calculator also shows the loan with the premium capitalised, since that is how most borrowers end up paying it. Above 95% it reports that most lenders will not lend, rather than a premium.
Reference table
A purchase at $800,000 with five deposit sizes, computed by the same code.
| Deposit | Amount | LVR | Band | Indicative premium |
|---|---|---|---|---|
| 5% | $40,000 | 95% | 92.01–95% | $30,400 |
| 8% | $64,000 | 92% | 90.01–92% | $21,344 |
| 10% | $80,000 | 90% | 85.01–90% | $13,752 |
| 12% | $96,000 | 88% | 85.01–90% | $13,446 |
| 15% | $120,000 | 85% | 80.01–85% | $7,752 |
The rate matrix behind it, as a percentage of the loan, by LVR band and loan size ($300,000 or less, over $300,000 to $500,000, $500,000 to $750,000, $750,000 to $1,000,000, over $1,000,000):
| LVR band | to $300,000 | to $500,000 | to $750,000 | to $1,000,000 | over $1,000,000 |
|---|---|---|---|---|---|
| 80.01–85% | 0.71% | 0.89% | 1.14% | 1.46% | 1.83% |
| 85.01–90% | 1.19% | 1.54% | 1.91% | 2.37% | 2.9% |
| 90.01–92% | 1.85% | 2.35% | 2.9% | 3.6% | 4.4% |
| 92.01–95% | 2.11% | 2.74% | 3.4% | 4% | 5.05% |
Indicative LMI premium matrix (typical insurer schedules by LVR band and loan size) — undated, indicative only.
What the figure leaves out
Insurers price by more than LVR and loan size: the loan purpose, the property type, the borrower's profile and the lender's own arrangements all move the premium. Some lenders waive LMI for particular professions or under the federal 5% Deposit Scheme (formerly the Home Guarantee Scheme), where the government guarantee replaces it. Stamp duty on the premium itself, charged in some states, is not included.
Where the report fits
LMI is the cost of buying before the deposit reaches 20%. Overpaying for the property is a cost that no insurance covers, and it is the one the report's fair-value range exists to show before you commit.
Sources
- Housing Australia, support to buy a home (the 5% Deposit Scheme) — checked 16 September 2026. Read on the page 16 September 2026: under the scheme the government guarantee stands in for lenders mortgage insurance.
- Helia, lenders mortgage insurance (an insurer's own explanation and estimator) — checked 16 September 2026. The matrix in the calculator is an approximation of typical insurer schedules, not a published rate card; Helia's page is the insurer's own explanation and was not read from this build environment.
Last updated 16 September 2026 · reviewed by The Buyers Grail editorial (agency page text checked 16 September 2026).
Where the report fits
A Property Decision Report does this work for one property you're weighing up: the fair-value range built from recorded comparable sales, where the asking price sits against it, the vendor and agent read, the risks that matter, and your opening, target and walk-away numbers, in writing, within 24 hours.
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