LMI Calculator
Want to avoid LMI?
A Rovo broker can help you explore low-deposit options including the First Home Guarantee — free & obligation-free.
LMI estimates are based on typical insurer rate cards (Genworth/QBE) and are indicative only. Actual premiums vary by lender, insurer, loan type, and credit profile. Rovo Finance (NJ IT PTY LTD ABN 67 654 854 378) CCR 570633 of Broker ACL Pty Ltd ACN 681 761 375 (ACL 563763).
LMI calculator Australia, estimate your Lenders Mortgage Insurance cost
Lenders Mortgage Insurance (LMI) is a one-off premium charged when your home loan deposit is less than 20% of the property value, putting your loan-to-value ratio (LVR) above 80%. It protects the lender (not you) if you default on the loan. LMI can add thousands to tens of thousands of dollars to your upfront costs, making it one of the most important numbers to understand before you buy.
Enter your property value and deposit above to see your estimated LMI cost, whether you’re eligible to avoid it through the First Home Guarantee Scheme, and how much extra interest you’d pay if you add LMI to your loan.
How much does LMI cost in Australia?
LMI premiums are calculated as a percentage of your loan amount and increase sharply as your LVR rises. The table below shows typical LMI costs based on Genworth and QBE indicative rates for owner-occupiers in 2025–26:
| Deposit | LVR | LMI on $500k loan | LMI on $700k loan |
|---|---|---|---|
| 20% or more | ≤ 80% | $0 | $0 |
| 15% | 85% | ≈ $3,850 | ≈ $5,390 |
| 10% | 90% | ≈ $8,250 | ≈ $11,550 |
| 8% | 92% | ≈ $11,600 | ≈ $16,240 |
| 5% | 95% | ≈ $15,400 | ≈ $21,560 |
Estimates based on Genworth/QBE indicative rates. Actual premiums vary by lender and insurer.
How to avoid LMI in Australia
- Save a 20% deposit: the straightforward path. Eliminates LMI entirely but delays your entry into the market
- First Home Guarantee Scheme: eligible first home buyers can purchase with 5% deposit and no LMI. Government guarantees the remaining 15%. 35,000 places annually with income caps ($125k singles, $200k couples)
- Family Home Guarantee: for eligible single parents, allows 2% deposit with no LMI
- Guarantor loan: a family member (usually a parent) uses equity in their property to guarantee part of your loan, eliminating the need for LMI
- Professional lender waiver: some lenders waive LMI for certain professions (doctors, lawyers, accountants) at up to 90% LVR
Your next step starts here
FAQs
Yes, most lenders allow you to capitalise LMI by adding it to your loan balance. This increases your loan amount and means you pay interest on the LMI premium over the life of the loan. Capitalising LMI can add $5,000–$15,000 in extra interest over 30 years, depending on your loan size.
This depends on property price growth in your area. If prices rise faster than you can save, paying LMI to buy sooner may be cheaper overall. In slower markets, saving a larger deposit may be better. A Rovo Finance broker can model both scenarios based on current market data.
Yes. Investors pay LMI when borrowing above 80% LVR, and investor LMI premiums are usually 20–25% higher than owner‑occupier rates. Some investors can claim LMI as a tax deduction over 5 years or the loan term. Speak with your accountant about deductibility.
For eligible buyers, the scheme is extremely valuable. It allows you to buy with a 5% deposit and avoid LMI, saving $15,000–$25,000 on average. It has income caps, property caps, and limited places each year. A Rovo Finance broker can check your eligibility and secure a place.
LMI is not transferable between lenders. If your LVR is still above 80% when refinancing, the new lender may charge LMI again. However, after a few years of repayments and property growth, most borrowers fall below 80% LVR, making LMI unnecessary.