LMI Calculator
Estimate your Lenders Mortgage Insurance cost
Rates updated for FY 2026-27 (last reviewed 2026-09-03)
Loan Details
$
$
12.5% of property value
Estimate
Loan-to-Value Ratio (LVR)87.50%
Estimated LMI
$6,571
Base Loan Amount$700,000
Total Loan Amount (incl. LMI)$706,571
Effective LVR (after capitalisation)88.32%
This LMI estimate is indicative only. Actual LMI premiums vary between lenders and insurers and may depend on factors such as loan purpose, property type, and borrower profile. Contact your lender for an accurate quote.
How to use this calculator
When to use this
You're buying a property with less than a 20% deposit and want to know how much Lenders Mortgage Insurance (LMI) will cost you.
Steps
- Enter the property value — the purchase price or valuation.
- Enter your deposit amount — the calculator works out your Loan-to-Value Ratio (LVR) automatically.
- Choose whether to capitalise the LMI into your loan (add it to the loan balance) or pay it upfront at settlement.
Understanding your results
- LMI — a one-off insurance premium that protects the bank (not you) if you default on the loan. It's required when your deposit is less than 20% of the property value.
- LVR (Loan-to-Value Ratio) — how much you're borrowing as a percentage of the property value. The higher the LVR, the more LMI costs.
- Capitalised LMI — if you add LMI to your loan, you don't pay it upfront, but you'll pay interest on it for the life of the loan, which increases the total cost.
Tips
- Even an extra $10,000 in your deposit can drop you into a lower LMI bracket and save you thousands — try increasing your deposit to see the difference.
- At 80% LVR or below (i.e. a 20% deposit or more), you pay zero LMI. That's the magic number to aim for if you can.