Work out Lenders Mortgage Insurance from a quoted premium, and what it costs to pay upfront or add to the loan
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
LMI at your quote
$13,500
LVR
90.0%
Premium rate
2.00%
of loan amount, as entered
Capitalising means you borrow the LMI too, and pay interest on it: here at 6.80%, the RBA's average variable rate, for 30 years.
Lenders Mortgage Insurance (LMI) protects the lender, not you, if a loan above 80% of the property's value isn't repaid, and the borrower pays the premium. Premiums are set by the insurer for each loan, so this calculator works from the premium in your quote: it shows the dollar cost, what adding it to the loan costs over 30 years, and the extra deposit that would bring the LVR to 80%.
As of 7 November 2026, the lowest variable home loan rate is 5.93%, from SCCU's BROKER HOME LOAN, while the typical best across 104 institutions is 6.38%. The lowest 3-year fixed home loan rate is 6.24%, from Credit Union SA's 3-Year Fixed 40 Year Home Loan Package, while the typical best across 80 institutions is 6.69%. The RBA cash rate is 4.85%. Those are for an owner-occupier paying principal and interest at an 80% LVR.
Emma is buying a $700,000 apartment with a 10% deposit ($70,000), borrowing $630,000. Her quote is 2% of the loan.
LMI at that quote: $12,600. Adding it to a 30-year loan at the RBA's average variable rate makes it $29,571 in total repayments. If Emma is eligible for the 5% Deposit Scheme and the property is under its price cap, she pays no LMI.
Sam is buying an $850,000 house, borrowing $748,000 (88% LVR), with a quote of 2% of the loan.
LMI at that quote: $14,960. Another $68,000 of deposit would bring the LVR to 80%, where LMI no longer applies.