The Finance Algorithm
§ Tool · tier 1 · independent

LMI Calculator.

Calculate Lenders Mortgage Insurance costs and discover strategies to avoid it

CalculatorFree, no signupOn-deviceupd May 2026
Inputs
Your numbers
$
$750k

The purchase price of the property

$
$675k

Anything above 80% of property value triggers LMI

Non-banks usually use slightly higher LMI rates

Some schemes can help you avoid LMI

Math updates live as you change inputs · AI runs on submit

Awaiting inputs

Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

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.

§ Worked examples

Real-world scenarios

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.

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

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.