Free LMI Calculator
Work out roughly how much LMI could cost on your home loan, and see whether you could avoid it altogether with a government deposit scheme or a profession-based waiver.
Estimates are based on typical published LMI rate ranges for owner-occupier home loans and are provided for general guidance only. They do not constitute financial advice or a loan/insurance quote. Speak with an Unconditional Finance broker for figures specific to your situation.
Lenders Mortgage Insurance (LMI) is a one-off insurance premium that protects the lender — not you — if you default on your home loan and the sale of the property doesn't cover the outstanding debt. Lenders typically require LMI when you borrow more than 80% of the property's value (an LVR above 80%), because a smaller deposit means more risk for the lender.
LMI is usually a once-off cost that can be paid upfront or added to (capitalised into) your loan amount. It's calculated by the lender's mortgage insurer based on your loan amount and LVR, and it can add anywhere from a few thousand to tens of thousands of dollars to the cost of a higher-LVR loan.
A lower deposit doesn't always mean paying LMI. Depending on your circumstances, one of the following may apply:
Borrowing 80% of the property value or less avoids LMI entirely with most lenders.
Eligible first home buyers can purchase with a 5% deposit and no LMI, with the government guaranteeing the deposit shortfall.
Eligible single parents with dependents can purchase with as little as a 2% deposit and no LMI, backed by Housing Australia.
Select lenders waive LMI for certain professions. Doctors can often borrow up to 100% of the property value without paying LMI, and LMI waivers are also commonly available to nurses, midwives and lawyers. See our profession-based home loans for details.
This calculator gives a general estimate based on typical published LMI rate ranges for owner-occupier loans. Actual premiums are set by the lender's mortgage insurer (such as QBE or Helia) and depend on your exact loan amount, LVR, loan purpose and lender policy — for a precise figure, speak with one of our brokers.
The minimum deposit to avoid LMI is generally 20% of the purchase price. Under the First Home Guarantee, eligible buyers can purchase with a 5% deposit and no LMI. Without a government scheme or profession-based waiver, a lower deposit typically attracts LMI, which can add thousands of dollars to your upfront costs.
Yes. Most lenders allow you to capitalise the LMI premium into your loan rather than paying it upfront, which spreads the cost over the life of the loan but means you'll pay interest on it too.
Some lenders offer a partial refund if you refinance or pay off your loan within the first 1-2 years, but policies vary by insurer and are not guaranteed. Check your loan's product disclosure statement or ask your broker.
Select lenders waive LMI for professionals including doctors (who can often borrow up to 100% LVR), nurses and midwives, and lawyers, recognising their income stability. Eligibility and LVR limits vary by lender.
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