LMI Calculator Australia โ FY 2025-26
Estimate your Lenders Mortgage Insurance premium based on property value, deposit, and LVR. Compare buying now with LMI versus waiting to save 20%. Check the Home Guarantee Scheme option for 5% deposit with no LMI.
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How to Use This Calculator
LMI Estimate tab
Enter the property value and your deposit amount. The calculator computes your Loan-to-Value Ratio (LVR) and estimates the LMI premium based on industry-average rates. Select your state to check whether stamp duty applies on the LMI premium itself.
Avoid LMI tab
Enter the property value and your current savings. See how much more you need to reach a 20% deposit, how long it will take at your monthly savings rate, and whether the Home Guarantee Scheme (5% deposit, no LMI) could work for you.
LMI vs Wait tab
Compare buying now with LMI versus waiting until you save 20%. Factor in expected property price growth to see whether paying LMI today is cheaper than missing out on capital growth while you save.
Share your result
All inputs are encoded in the URL. Click Share to send your exact calculation to your mortgage broker, buyer’s agent, or partner.
The Formula
LVR = (Loan Amount ÷ Property Value) × 100
LMI Premium (estimate):
LMI = Loan Amount × LMI Rate (varies by LVR band)
80-85% LVR: 0.5-1.0% | 85-90%: 1.5-2.5% | 90-95%: 2.5-4.0% | 95%+: 4.0%+
LMI Capitalised:
New loan = Original loan + LMI premium
Extra interest = LMI premium × compound interest over loan term
Stamp Duty on LMI:
NSW ~9%, VIC ~10%, QLD ~9%, ACT ~5% of LMI premium.
WA, SA, TAS, NT do not charge stamp duty on LMI.
Worked Example
$700,000 property, $70,000 deposit (10% = 90% LVR)
Step 1: Calculate LVR and loan
Step 2: Estimate LMI
Step 3: If capitalised into loan
Step 4: Alternative — save for 20%
Verdict: Paying $15,750 in LMI to buy at $700,000 is likely cheaper than waiting 35 months while the property rises to $720,000+. The missed growth of ~$20,000 exceeds the LMI cost.
LMI Rate Estimates by LVR Band
| LVR Band | Estimated LMI Rate | On $630K Loan |
|---|---|---|
| ≤ 80% | 0% (no LMI) | $0 |
| 80.01% – 85% | 0.5% – 1.0% | $3,150 – $6,300 |
| 85.01% – 90% | 1.5% – 2.5% | $9,450 – $15,750 |
| 90.01% – 95% | 2.5% – 4.0% | $15,750 – $25,200 |
| 95%+ | 4.0%+ | $25,200+ |
Rates are industry averages. Actual LMI premiums vary by lender, loan amount, property type, and borrower profile. LMI providers: Helia (formerly Genworth), QBE LMI.
Professional LMI waivers
Some lenders offer LMI waivers for certain professions at up to 90% LVR (sometimes 85%). Eligible professions typically include:
- Medical professionals: Doctors, dentists, veterinarians, optometrists, pharmacists
- Legal professionals: Solicitors, barristers
- Accounting professionals: CA/CPA qualified accountants
- Other: Engineers, actuaries, mining professionals (varies by lender)
Requirements vary by lender. You typically need to be qualified and practising in your profession. Ask your mortgage broker about LMI waiver options.
Home Guarantee Scheme (5% deposit, no LMI)
The Australian Government's Home Guarantee Scheme allows eligible buyers to purchase with a deposit as low as 5% without paying LMI. The government guarantees up to 15% of the property value.
- First Home Guarantee: 5% deposit for first home buyers
- Regional First Home Buyer Guarantee: 5% deposit for regional buyers
- Family Home Guarantee: 2% deposit for single parents
- Unlimited places from October 2025
Property price caps apply. Check eligibility at housingaustralia.gov.au. You do not pay for the guarantee.
Stamp duty on LMI by state
| State | Stamp Duty on LMI | On $15,000 LMI |
|---|---|---|
| NSW | ~9% | ~$1,350 |
| VIC | ~10% | ~$1,500 |
| QLD | ~9% | ~$1,350 |
| ACT | ~5% | ~$750 |
| WA | Not charged | $0 |
| SA | Not charged | $0 |
| TAS | Not charged | $0 |
| NT | Not charged | $0 |
Stamp duty on LMI is an additional cost on top of the LMI premium itself. It applies in states that treat LMI as a dutiable insurance product.