LMI Calculator
Estimate lenders mortgage insurance (LMI) on a low-deposit home loan in Australia. The smaller your deposit, the higher the LMI, this gives an indicative figure.
LMI is a one-off premium that protects the lender when your deposit is under 20%. At a 5% deposit it can run to several percent of the loan; at 15% it’s much smaller. Eligible first home buyers may avoid it entirely via the First Home Guarantee.
- ✓A 20% deposit avoids LMI completely
- ✓First home buyers may skip LMI via the First Home Guarantee
How we estimate this
Lenders mortgage insurance (LMI) is charged when you borrow more than 80% of a property’s value. It protects the lender, not you, and is a one-off premium that can be added to the loan. The lower your deposit, the higher the LMI.
Pricing reviewed: October 2026.
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Understanding lmis in Australia
Lenders mortgage insurance (LMI) is charged when you borrow more than 80% of a property’s value. It protects the lender, not you, and is a one-off premium that can be added to the loan. The lower your deposit, the higher the LMI.
Ways to avoid LMI include saving a 20% deposit, using a family guarantor, or qualifying for the government’s First Home Guarantee, which lets eligible buyers purchase with 5% and no LMI.
Frequently asked questions
How much is LMI?
It varies with your loan-to-value ratio and loan size, anywhere from under 1% to several percent of the loan. This calculator gives an indicative figure.
Can I avoid LMI?
Yes, with a 20% deposit, a guarantor, or via the First Home Guarantee for eligible first home buyers.
Are you a mortgage broker?
Everyone on this page is working out what lmi costs because they are ready to hire. Put your business right beneath the calculator, in your state, so you are who they find. From $1,000/mo.