Lenders Mortgage Insurance (LMI) Estimate Calculator
Estimate LMI from your deposit and loan size — LVR, an indicative premium by LVR and loan-size band, the state duty on the premium, investor loading, the cost of adding it to the loan, the 5% Deposit Scheme price caps and how much LMI each extra slice of deposit saves.
How it works
LVR = loan ÷ price · premium ≈ loan × rate from an LVR (1% steps, 81–95%) × loan-size table (≈0.5–1.5% at 81–85%, 1–3.5% at 86–90%, 2.2–4.2% at 91–95%), × 1.15 for investment loans · total = premium × (1 + state duty) · capitalised cost = extra repayment × months − premium
Lenders mortgage insurance protects the lender, not you, when you borrow more than 80% of the property’s value — and you pay for it, usually by adding it to the loan, where it then accrues interest for the whole term. The premium is a percentage of the entire loan that rises steeply with the LVR and the loan size, so a 95% loan can cost several times as much as an 85% one. This estimate uses an indicative rate table in 1% LVR steps and six loan-size bands, adds a typical loading for investment loans and the insurance duty your state charges on the premium (NSW and the ACT charge none), and shows the real cost of capitalising it. Each insurer (Helia, QBE) and lender has its own table, so treat the figure as a guide. The table and chart show how much LMI each extra slice of deposit saves. Under the federal 5% Deposit Scheme, eligible first home buyers can borrow 95% with no LMI, and single parents can borrow 98% under the Family Home Guarantee, if the price is under the cap for the area.
Worked example
$80,000 deposit on $800,000 in NSW (90% LVR, $720,000 loan): about 2.65% = $19,080, with no NSW duty. Added to the loan at 6% over 30 years it costs about $114 a month and roughly $22,100 in interest. In Victoria the 10% duty takes the premium to about $20,990. A $160,000 deposit (20%) avoids LMI entirely, and a first home buyer under the 5% Deposit Scheme pays none on this price, which is under the $1.5 million Sydney cap.
Sources: Housing Australia — Home Guarantee Scheme · Home Loan Experts — LMI premium estimates and waivers
Frequently asked questions
Is LMI refundable if I refinance or sell?
Rarely. Some insurers give a partial refund if the loan is repaid within the first year or two; otherwise nothing comes back, and a new lender charges again if your LVR is still over 80%.
Is LMI tax-deductible?
For an investment property, yes: it is a borrowing cost deducted over five years (or the loan term if shorter). It is not deductible for your own home.
How does the 5% Deposit Scheme avoid LMI?
The government guarantees up to 15% of the property’s value (18% under the Family Home Guarantee), so the lender does not need insurance. Since 1 October 2025 there are no income caps or place limits for first home buyers, but the price must be under the cap for the area, such as $1.5 million in Sydney and NSW regional centres or $950,000 in Melbourne. Choose the scheme under More options to check.
Why does a small extra deposit save so much LMI?
The premium rate applies to the whole loan and drops at each LVR step. Going from 95% to 90% on an $800,000 home cuts the loan by $40,000 but cuts the indicative LMI from about $28,900 to $19,100. The deposit table shows the saving at each step.
Should I add LMI to the loan or pay it upfront?
Paying upfront saves the interest — about $22,000 over 30 years on a $19,000 premium at 6% — but uses cash you may need for stamp duty and moving costs. Adding it to the loan also raises your LVR, and many lenders cap the total, including LMI, at about 95–97%.
Related calculators
Indicative estimate using typical 2026 LMI rate bands, state insurance duty rates and the Home Guarantee Scheme price caps in force since 1 October 2025. Actual premiums depend on the insurer, the lender and your application. Not financial advice — get a quote from your lender or broker.