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LMI Calculator

Calculator

Calculate Lenders Mortgage Insurance costs and discover strategies to avoid it

Free to useNo data storedAI insightsUpdated: February 2026

Lenders Mortgage Insurance (LMI) protects the lender if you default on your loan - but you pay for it. LMI can cost tens of thousands of dollars. Use our calculator to estimate your LMI and get AI-powered strategies to avoid or minimize this cost.

Enter Your Details

Enter Your Details

$

The purchase price of the property

$

The amount you want to borrow

Different lenders use different LMI providers

Some schemes can help you avoid LMI

Real-World Examples

First Home Buyer at 90% LVR

Emma is buying an $700,000 apartment with a 10% deposit ($70,000), borrowing $630,000 with a major bank.

Inputs:

propertyValue:700,000loanAmount:630,000lenderType:Major Bank
LMI estimate: ~$16,000. If Emma qualifies for the First Home Guarantee, she could save this entire amount by using one of 35,000 places available each year.

Doctor with 88% LVR

Dr. Patel is purchasing an $850,000 house, borrowing $748,000 (88% LVR).

Inputs:

propertyValue:850,000loanAmount:748,000lenderType:Major Bank
Standard LMI would be ~$14,000, but as a registered medical practitioner, Dr. Patel can access professional packages that waive LMI up to 90% LVR.

Frequently Asked Questions

Glossary

LMI (Lenders Mortgage Insurance)
Insurance that protects the lender (not you) if you default on your home loan. Required when borrowing more than 80% of the property value.
Capitalize
Adding LMI to your loan amount rather than paying upfront. You then pay interest on the LMI over the life of the loan.
First Home Guarantee
A government scheme allowing eligible first home buyers to purchase with as little as 5% deposit without paying LMI. The government guarantees up to 15% of the loan.
Family Guarantee
An arrangement where a family member uses equity in their property to guarantee part of your loan, avoiding LMI even at high LVRs.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

How to Use
  1. Enter your property value
  2. Enter your loan amount
  3. Select your lender type
  4. Indicate if you're a first home buyer
  5. Get your LMI estimate and avoidance strategies
Key Information
  • LMI is required when borrowing more than 80% of the property value
  • LMI can be paid upfront or added to your loan (capitalized)
  • Government schemes can help you avoid LMI entirely
  • Some professions (doctors, lawyers) can get LMI waivers
Pro Tips
  • The First Home Guarantee lets eligible buyers purchase with just 5% deposit and no LMI - check your eligibility
  • If you're a doctor, nurse, lawyer, or accountant, ask about professional LMI waivers - many lenders offer them
  • Family guarantee arrangements let you borrow up to 100% without LMI using a parent's property as security
  • Capitalizing LMI means higher repayments - calculate if it's better to save more deposit instead
Avoid These Mistakes
  • Not checking eligibility for the First Home Guarantee scheme before paying LMI
  • Assuming LMI is the same across all lenders - prices vary significantly between providers
  • Forgetting that capitalized LMI earns interest over 30 years, dramatically increasing the true cost
  • Not asking about professional packages if you're in an eligible occupation
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