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LMI Calculator
Lenders Mortgage Insurance is charged when your deposit is less than 20% of the property price. See what it will cost you — and whether the First Home Guarantee could save you the entire premium.
Estimated LMI premium
$0
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LVR
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Loan-to-value ratio
Loan + LMI (capitalised)
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If added to loan
Indicative only. Actual LMI premiums vary by insurer (Helia, QBE), lender, and loan type. LMI is typically capitalised into the loan (paid over 30 years, not upfront) but you pay interest on it. Talk to a broker for actual figures.
The property
LMI cost by deposit size — for your property price
🎯 First Home Guarantee (FHBG)
Eligible first-home buyers can purchase with a 5% deposit — and the government guarantees the balance, so you pay zero LMI. Property price caps apply per city (2026: $900k Sydney, $800k Melbourne/Brisbane, $700k Adelaide/Perth). Income caps: $125k single / $200k couple.
What is LMI and who pays it?
Lenders Mortgage Insurance protects the lender, not you. It kicks in when your Loan-to-Value Ratio (LVR) exceeds 80%. Even though you pay it, the insurer pays the bank if you default. LMI is usually capitalised (added to the loan), so you effectively borrow the LMI premium as well and pay interest on it over the life of the loan.
How can I avoid LMI?
Three main ways: (1) Save a 20% deposit + costs. (2) Use the First Home Guarantee scheme (5% deposit, government covers the LMI risk — caps apply). (3) Professional exemptions — some lenders waive LMI for doctors, lawyers, accountants and other specific professions up to 90% LVR. (4) A family guarantee (a family member uses their property as security).
Should I pay LMI upfront or capitalise it?
Paying LMI upfront saves you decades of interest on that premium. But most people can’t — the whole reason they need LMI is that they have limited cash. Capitalising is standard: the premium is added to your loan balance and you pay it off over 30 years like the rest.
Is LMI refundable if I refinance or sell early?
Partially. Most insurers offer a partial refund if you fully repay the loan within 1–2 years. After that, no refund. LMI is not transferable between lenders — if you refinance to another bank with an LVR still above 80%, you may pay a second LMI premium at the new lender.