LMI Calculator — Australia
This is an Australian Lenders Mortgage Insurance (LMI) calculator. Enter the purchase price and deposit and it estimates the LMI premium a lender is likely to capitalise into the loan where the loan-to-value ratio (LVR) is above 80%. LMI is insurer-priced and lender-specific — use the figure as a planning estimate, not a quote.
What this calculator does
LMI protects the lender (not the borrower) against loss if the borrower defaults. It is typically charged on residential home loans where the LVR exceeds 80%. This calculator estimates the premium based on purchase price and deposit using a blended industry pricing matrix. Actual premiums are set by QBE or Helia (formerly Genworth) and vary by loan size, LVR, and borrower profile.
Legal basis
LMI is a contract of insurance regulated by the Insurance Contracts Act 1984 (Cth) and the Insurance Act 1973 (Cth), with providers supervised by APRA. It is not a statutory charge — pricing is set by the mortgage insurer. Credit licensing obligations on brokers and lenders sit under the National Consumer Credit Protection Act 2009 (Cth).
How the calculation works
Calculate loan amount = purchase price − deposit. Calculate LVR = loan amount ÷ purchase price. If LVR ≤ 80%, LMI is typically nil. If LVR > 80%, apply a blended industry premium rate matrix by LVR band (81–85%, 86–90%, 91–95%) and loan size band. Apply the stamp duty on the insurance premium per the state the property sits in.
Interactive calculator coming soon
For an $800,000 purchase with an $80,000 deposit (10% deposit, 90% LVR, $720,000 loan), estimated LMI is in the order of $14,000–$18,000, typically capitalised into the loan.
In the meantime, use the worked example above to validate your figures and confirm the final amount with the relevant revenue office or authority before relying on it in a matter.
Start free trialWhat you fill in
- Purchase price (AUD) (currency): Must be a positive number
- Deposit (AUD) (currency): Must be a positive number less than purchase price
- First home buyer? (select): Required
- Loan term (years) (number): 10–40 years
- Occupancy (select): Required
Limitations
- Premiums are insurer- and lender-specific — QBE and Helia publish different matrices and lenders apply their own discounts
- Does not include the First Home Guarantee or Family Home Guarantee (which waive LMI up to an 80% loan with a 5% deposit)
- Does not apply lender-professional LMI waivers (available to doctors, lawyers, accountants under some policies)
- State-level stamp duty on the insurance premium varies and is only approximated
- Not a quote — actual premium confirmed only in the lender’s formal credit assessment
What to do next
Talk to a mortgage broker or lender for an actual LMI quote, and to check eligibility for the Home Guarantee Scheme which can waive LMI entirely. On the conveyancing side, Quillio supports the solicitor through the contract review and pre-settlement steps — see /practice-areas/property-lawyers.
Calculator FAQs
What is LMI?
Lenders Mortgage Insurance is an insurance premium paid by the borrower that protects the lender against default loss. It is typically required when the loan-to-value ratio exceeds 80%. LMI does not protect the borrower.
Is the premium capitalised into the loan?
Yes, most lenders capitalise the LMI premium into the loan — you do not pay it upfront. That increases the loan balance and interest cost over the loan term.
Do first home buyers always pay LMI?
No — the federal Home Guarantee Scheme (First Home Guarantee and Family Home Guarantee) can waive LMI where eligible, allowing a 5% deposit without LMI. The scheme has annual place limits and property price caps.
Is LMI regulated?
Yes — LMI contracts are regulated under the Insurance Contracts Act 1984 (Cth) and the Insurance Act 1973 (Cth), with the provider supervised by APRA. Credit brokers and lenders sit under the National Consumer Credit Protection Act 2009 (Cth).
Are there professional waivers?
Some lenders waive LMI up to 90% LVR for qualifying professionals (doctors, lawyers, accountants) under published policies. The waiver is lender-specific and not modelled here.
Can I avoid LMI with a guarantor?
Yes — a family guarantor loan structure can allow lending above 80% LVR without LMI because the guarantor’s property provides additional security. That sits outside this calculator.
Is this a quote?
No — it is an estimate using blended industry rates. Confirm the actual premium with the lender or broker before relying on it.
Get help with the matter
After the lender sorts LMI, the conveyancer or solicitor handles the contract and settlement. Quillio drafts contract reviews, vendor disclosure summaries, and pre-settlement checklists in minutes — see /practice-areas/property-lawyers.
This calculator is an estimate only. LMI premiums are set by the insurer and lender and vary by loan size, LVR, borrower profile, and lender policy. Confirm the actual premium with a broker or lender before relying on the figure.
Quillio handles the next steps.
The calculator gives you the number. Quillio handles the rest of the matter — drafting, review, research, and correspondence. The free trial requires no sales call.
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