Calculators
Lenders mortgage insurance calculator
Borrow more than 80% of a property's value and the lender will almost always insure itself at your expense. This estimates the premium as a range, shows what capitalising it does to your LVR, and lists the ways people avoid paying it.
The purchase
The lower of the purchase price and the lender's valuation.
The premium
Both figures are yours to set — nothing here is a lender's or insurer's published rate.
Of the loan amount. The middle of the indicative range for a 90.0% LVR is 1.75%. Replace it with your quote when you have one.
Most states charge duty on the LMI premium — it is 9% in Queensland. Set it to your state's rate, or to 0 to leave it out.
The loan
Only used to price the interest on a capitalised premium.
Indicative LMI premium
$12,017
Somewhere between $7,554 and $16,481 on a $630,000 loan at 90.0% LVR. Every insurer prices differently — this is a range, not a quote.
LVR
85.01% – 90% band
90.0%
Indicative range
1.10% to 2.40% of the loan, plus insurance duty
$7,554 – $16,481
Premium at 1.75%
$11,025
Insurance duty at 9.0%
$992
Total added to your costs
$12,017
Loan with the premium added
Lifts the LVR to 91.7% — into the 90.01% – 95% band, which some lenders will not allow
$642,017
Interest on the premium over 30 years
$13,921
Extra deposit to pay nil LMI
A 80.0% LVR here is a $560,000 loan
$70,000
Email me these resultsPlus a quick note on what a lender would actually do with them.
Indicative premium by LVR band
The same loan amount, priced at each band's low and high indicative rate. The jump at each threshold is the point.
| LVR band | Rate range | On $630,000 | Deposit needed |
|---|---|---|---|
| 80% or less | Nil | Nil | $157,500 |
| 80.01% – 85% | 0.50% – 1.20% | $3,150 – $7,560 | $111,176 |
| 85.01% – 90%you | 1.10% – 2.40% | $6,930 – $15,120 | $70,000 |
| 90.01% – 95% | 2.00% – 4.20% | $12,600 – $26,460 | $33,158 |
| Above 95% | 3.50% – 5.00% | $22,050 – $31,500 | — |
“Deposit needed” is the extra deposit that would put a $630,000 loan at the top of that band. Premium figures exclude insurance duty.
Four ways to pay no LMI
LMI protects the lender, not you. If one of these fits, it is usually worth the extra effort.
Get to a 20% deposit
The only certain way to pay nil LMI. If you're close, waiting a few months or trimming the purchase price can be cheaper than the premium.
First Home Guarantee
The Commonwealth's Home Guarantee Scheme lets eligible first home buyers borrow up to 95% with the government guaranteeing the rest, so no LMI is charged. Places, price caps and income tests apply — check housingaustralia.gov.au.
Professional or industry waivers
Some lenders waive LMI to 85%, 90% or even 95% for particular occupations — medical, legal, accounting and a handful of others. The list and the LVR differ at every lender.
A guarantor
A family member offering security over their own property can take the effective LVR under 80% and remove LMI entirely, without them handing over cash.
Under the bonnet
Assumptions & how we calculate
We show our working so you can judge the number, not just read it. Every lender applies its own policy on top of maths like this.
- Premiums are indicative RANGES expressed as a percentage of the loan amount, by LVR band: nil at or under 80%, roughly 0.5–1.2% to 85%, 1.1–2.4% to 90%, 2.0–4.2% to 95%, and higher above that. They describe the spread seen across the market — they are not any insurer's rates, not any lender's rates, and not Rannar's.
- The premium rate is an input, seeded at the middle of the band's range. Replacing it with a quoted figure updates every number on the page.
- Premiums also vary with loan size, loan purpose, repayment type, property type and first home buyer status. None of that is modelled.
- Insurance duty is charged on the premium in most states — 9% in Queensland. It starts at 9% and can be changed or removed.
- Capitalising adds the premium including duty to the loan. The interest figure assumes it rides on the loan for the full term at the rate and term set.
- Eligibility for the Home Guarantee Scheme, professional waivers and guarantor arrangements is not assessed.
The information on this website is general in nature and does not take into account your personal objectives, financial situation or needs. Before acting on any information you should consider whether it is appropriate for you. Terms, conditions, fees, charges and normal lending criteria apply. Rates are subject to change.
FAQs
Questions people ask
How accurate is an LMI estimate?
Treat it as an order of magnitude, not a quote. Premiums come from the insurer's or the lender's own confidential rate table, and they also move with loan size, loan purpose, repayment type, the property type and whether you are a first home buyer. That is why this calculator shows a range rather than a single figure, and why the premium rate is an input you can overwrite once you have a real quote in front of you.
Who does lenders mortgage insurance actually protect?
The lender, not you. If the loan defaults and the property sells for less than the debt, the insurer covers the lender's shortfall — and may then pursue you for it. It is not mortgage protection insurance, which pays your repayments if you cannot work. The only thing LMI does for you is make a loan above 80% LVR possible.
Is it better to pay LMI upfront or add it to the loan?
Capitalising the premium keeps cash in your pocket, but you pay interest on it for the life of the loan, and it lifts your LVR — occasionally past a threshold the lender will not allow. Toggle it above to see both the extra interest and the new LVR. Paying upfront costs more at settlement and nothing afterwards.
Is LMI refundable if I refinance or sell?
Sometimes, partially, and only early. Some insurers offer a partial refund if the loan is discharged within the first year or two, on a sliding scale. Beyond that there is generally nothing back. The premium also does not transfer to a new lender, so refinancing above 80% usually means paying it again.
How can I avoid paying LMI?
A 20% deposit is the certain route. Beyond that: the Commonwealth's Home Guarantee Scheme (including the First Home Guarantee) lets eligible buyers borrow up to 95% with no LMI because the government guarantees part of the loan; some lenders waive LMI for certain professions, typically to 85% or 90%; and a guarantor offering security over their own property can take the effective LVR under 80%. Eligibility rules differ at every lender and for every scheme.
Next step
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Free, no obligation. General information only — not credit advice.