LMI Calculator Australia: What Will You Pay?
Lenders Mortgage Insurance can add $5,100–$32,490 to your upfront purchase cost the moment your deposit drops below 20%. Here is what it costs at each LVR, worked examples at common price points, and every legitimate way to avoid paying it.
What is LMI?
Lenders Mortgage Insurance is a one-off premium you pay that protects your lender— not you — if you default and the property sale falls short of the outstanding debt. Despite being the bank's insurance policy, the cost falls entirely on you.
LMI applies whenever your loan-to-value ratio (LVR) exceeds 80% — that is, your deposit is less than 20% of the purchase price. The two insurers covering virtually all Australian residential mortgages are Helia (formerly Genworth) and QBE LMI. Your lender chooses which insurer to use — you have no say in it.
LMI is a national cost. The rate does not vary by state; it varies by LVR and loan amount. Higher LVR and larger loans attract higher percentage rates.
LMI rate table by LVR
These rates are derived from Helia's published indicative fee estimator (median of the $500k–$750k loan range). Actual premiums vary by lender, exact loan amount, and borrower type. The table gives the simplified per-band rate used in this calculator.
| LVR | Deposit | Indicative LMI rate |
|---|---|---|
| ≤ 80% | 20% or more | No LMI required |
| 80.01–85% | 15–19.99% | 1.00% of loan amount |
| 85.01–90% | 10–14.99% | 1.70% of loan amount |
| 90.01–95% | 5–9.99% | 3.80% of loan amount |
| > 95% | Less than 5% | 5.00% of loan amount |
Source: Helia indicative rates via helia.com.au fee estimator, last verified April 2026.
Indicative LMI estimates at common property values
Computed from the rate table above. “Property value” is the purchase price; deposit and loan amount are derived from the stated LVR.
| LVR | $500,000 property | $750,000 property |
|---|---|---|
| ≤ 80% (20%+ deposit) | No LMI | No LMI |
| 85% (15% deposit) | ~$4,250 | ~$6,375 |
| 90% (10% deposit) | ~$7,650 | ~$11,475 |
| 95% (5% deposit) | ~$18,050 | ~$27,075 |
Note: rates set by QBE LMI and Helia (formerly Genworth). Actual premium varies by lender and exact loan characteristics. These are indicative only.
Worked examples at common price points
All figures computed from the LVR bracket rates above — the same formula used in the Proplyx True Cost Calculator. Treat these as planning estimates; your lender will quote the exact premium before you commit.
Sydney · $900,000 · 10% deposit
LVR sits exactly on the 90% boundary — in the 85–90% tier. A 90% LVR purchase is one of the most common scenarios for first home buyers entering the Sydney market.
Melbourne · $650,000 · 8% deposit
At 92% LVR, this sits in the 90–95% tier and attracts the highest standard LMI rate. Going from 8% to 10% deposit on this purchase saves roughly $9,000 in LMI.
Brisbane · $550,000 · 5% deposit
At 95% LVR — the highest standard LMI tier. This is the minimum deposit for the Australian Government 5% Deposit Scheme, which waives LMI entirely for eligible first home buyers.
Perth · $750,000 · 15% deposit
At 85% LVR, in the lowest LMI tier. The incremental savings from 15% to 20% deposit would eliminate LMI entirely — run both scenarios in the calculator to see if it is worth the wait.
How to avoid LMI
There are four realistic paths to avoid paying LMI:
- Save a 20% deposit. The straightforward route. At 80% LVR, LMI drops to zero. The trade-off is time — every extra year saving is a year not owning as prices potentially move. Run both scenarios in the calculator to see which actually costs more.
- Use the Australian Government 5% Deposit Scheme.For eligible first home buyers, the Commonwealth guarantees the 15% gap between your 5% deposit and the 20% threshold — your lender doesn't require LMI because the government has underwritten the risk. There are no fees for the scheme itself. Price caps apply by state. See the full scheme guide for eligibility and caps.
- Use a family guarantee (guarantor loan).A parent or immediate family member can use equity in their own property to guarantee the shortfall between your deposit and 20%. This eliminates LMI on the shortfall portion. The guarantor takes on genuine risk — if you default and the sale doesn't cover the debt, their property is exposed. Not a decision to make lightly.
- Ask about professional LMI waivers. Some lenders waive LMI for medical professionals, lawyers, and accountants at LVRs up to 90% or even 95%. These waivers are lender-specific and not universally available — ask your broker whether you qualify.
LMI rates vary by lender
Although LMI is underwritten by only two providers nationally (Helia and QBE), the premium you actually pay can vary between lenders. Some lenders have negotiated lower rates with their insurer; others charge a higher rate as a margin add, or build LMI into the loan's interest rate rather than quoting it as a separate upfront fee. Two lenders offering the same headline rate at the same LVR can have meaningfully different effective LMI costs.
Some lenders also waive LMI entirely for certain professions (medical professionals, dentists, pharmacists, lawyers, accountants) at LVRs up to 90% or 95% — a saving of up to $20,000+ on a typical purchase. These waivers are not widely advertised and are not available through all lenders. The most reliable way to find out whether a waiver applies to you is to ask a mortgage broker who has access to the full panel.
Is LMI worth paying?
The honest answer: sometimes yes. The common framing — “LMI is dead money because it doesn't protect you” — is true but incomplete. The real question is whether the cost of LMI today is less than the cost of waiting to save a larger deposit.
If property prices rise faster than you can save, every year of extra saving can cost more in price appreciation than the LMI premium itself. Conversely, if prices are flat or falling, waiting is straightforwardly better. Neither future is guaranteed.
A concrete example: a $750,000 property at 10% deposit triggers roughly $11,475 in LMI. If prices rise 7% over 18 months while you save the remaining 10% deposit, the same property now costs $802,500 — the price increase alone exceeds the LMI premium. If prices are flat, you save the LMI and buy a slightly smaller loan. The calculator shows both scenarios side by side.
See your exact LMI cost alongside stamp duty, mortgage repayments, and every ongoing ownership cost:
Calculate your true purchase costFrequently asked questions
What is lenders mortgage insurance?
Lenders Mortgage Insurance (LMI) is a one-off insurance premium charged when your home loan deposit is less than 20% of the purchase price (LVR above 80%). It insures the lender — not you — against loss if you default and the property sale falls short of the outstanding debt. Despite being the bank's policy, you pay the premium. The two insurers covering virtually all Australian residential mortgages are Helia (formerly Genworth) and QBE LMI.
Do I have to pay LMI?
LMI is compulsory whenever your LVR exceeds 80% — that is, your deposit is less than 20% of the property price. You cannot opt out of it unless you bring your LVR to 80% or below (20%+ deposit), use the Australian Government 5% Deposit Scheme (which substitutes a government guarantee for LMI), obtain a guarantor loan, or qualify for a professional LMI waiver through your lender. There is no other way around it.
How much does LMI cost in Australia?
LMI varies by LVR and loan size. At 85% LVR on a $500,000 property, expect roughly $4,000–$5,000. At 90% LVR, roughly $7,500–$9,000. At 95% LVR, roughly $17,000–$20,000. Larger loans attract higher percentage rates within the same LVR band — a $750,000 property at 90% LVR typically costs $11,000–$14,000 in LMI. Use the estimates table above or run the full calculator for your exact scenario. These figures are indicative; your lender will quote the exact premium.
Can I avoid LMI without a 20% deposit?
Three main paths exist: (1) the Australian Government 5% Deposit Scheme waives LMI for eligible first home buyers with a 5%+ deposit by substituting a government guarantee; (2) a guarantor loan uses a family member's property equity to cover the shortfall, removing the LMI requirement; (3) some lenders offer professional LMI waivers for medical professionals, lawyers, and accountants at LVRs up to 90–95%. Each path has trade-offs — timing, risk to family members, or profession-specific restrictions. A mortgage broker can map which options are available to you.
Can I add LMI to my home loan instead of paying it upfront?
Yes — most lenders allow LMI to be capitalised into the loan, meaning you borrow the premium rather than pay it at settlement. This reduces your upfront cash demand but increases your loan balance and total interest cost. On a $15,000 LMI premium capitalised into a 30-year loan at 6%, total repayments increase by roughly $31,000. Our calculator models LMI as an upfront cost; if you plan to capitalise, add the LMI amount to your loan principal when running the mortgage calculation.
Is LMI refundable if I refinance or sell?
Partially, and only in limited circumstances. If you refinance or sell within the first 12 months of the loan (and only if the original lender arranges the refund), some insurers offer a pro-rata refund on a sliding scale — typically 40% refund in month 1, reducing to 0% after 12 months. After 12 months, LMI is non-refundable regardless of what you do with the loan. If you refinance to a new lender, you will typically need to pay LMI again if your LVR is still above 80% — even if you paid LMI on the original loan. Check your insurer's refund policy before refinancing; the rules differ between Helia and QBE.
Does LMI protect me if I can't pay my mortgage?
No. LMI protects the lender, not you. If you default and the bank sells your property at a loss, the insurer reimburses the bank for the shortfall — then the insurer can pursue you for that amount. You remain personally liable for any residual debt even after the property is sold and LMI pays out to the bank. LMI is not income protection, mortgage protection insurance, or a safety net for you. If you want cover for loss of income, that is a separate product (income protection insurance) sold independently of LMI.
How accurate is the LMI estimate in this calculator?
The estimates are indicative — useful for budgeting and comparing scenarios, not for locking in exact settlement costs. Real LMI premiums vary by lender, loan size, borrower type, and the specific sub-band within each LVR tier. Our rates are derived from Helia's published indicative fee estimator (median of the $500k–$750k loan range, last verified April 2026). Your participating lender will quote the exact premium before you commit.
LMI estimates are indicative only and are based on simplified LVR bracket rates derived from Helia's published indicative fee estimator. Actual premiums vary by lender, loan size, and borrower characteristics. This page is for general information and is not financial advice. Verify your exact LMI cost with your lender or mortgage broker before making property decisions.