Property

LMI for Investors: Why Premiums Can Be Higher

Why Australian property investors can pay different LMI premiums from owner occupiers, and what to model before buying at high LVR.

RERealEstateCalc Editorial · Property & Finance Research
25 May 20261 min read
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Investor LMI can price differently

LMI premiums can vary by borrower type. Investors may face higher premiums than owner occupiers because lender and insurer risk settings differ.

The difference matters most at high LVRs. A 90% or 95% investor loan can produce a much larger premium than a lower-LVR purchase.

What investors should model

Add LMI to the total investment equation, not just the settlement cash. If LMI is capitalised, include the higher repayment and interest cost in cash flow.

Use the LMI Calculator, then test holding costs with the Investment Property Yield Calculator.

Sources: ASIC Moneysmart LMI guidance and lender LMI methodology. General information only.

RE

RealEstateCalc Editorial

Property & Finance Research

The RealEstateCalc editorial team researches and writes about Australian property, finance, and tax topics. All content is fact-checked against official sources including the ATO, state revenue offices, ASIC Moneysmart, and the RBA.

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lmi for investorsinvestment property lmilmi calculatorhigh lvr investor

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