LMI Calculator (2025)

Estimate LMI premiums, see capitalised costs and monthly impact, and how much deposit avoids LMI.

Formula: LMI Premium = Loan Amount × Premium Rate × (1 - Discounts) + State Fees

Input Values

LMI Not Required
(LVR: 80.0%)

The total amount you plan to borrow from the lender. This is typically the property price minus your deposit.

The purchase price or current market valuation of the property. This is used to calculate your Loan-to-Value Ratio (LVR).

Owner-occupiers typically pay lower LMI premiums than investors, as they represent lower risk to lenders.

Different property types have different LMI rates. Houses typically have the lowest rates, while vacant land has the highest due to increased risk.

State where the property is located. State governments levy additional fees on LMI premiums, typically around 0.4% of the premium amount.

Joint borrowers may qualify for slightly lower LMI rates as they represent reduced risk with multiple income sources.

No

First home buyers may qualify for LMI discounts of up to 10% with certain lenders, helping reduce the overall cost of home ownership.

Capitalising adds the LMI cost to your loan (paying interest on it), while upfront payment requires cash at settlement. Capitalising is more common but costs more over time.

Your mortgage interest rate used to calculate monthly repayments and the total interest impact of capitalised LMI over the loan term.

The length of your mortgage term in years. Longer terms mean lower monthly payments but higher total interest costs, especially when LMI is capitalised.

Results

Deposit

$0.00

Loan-to-Value Ratio (LVR)

80.00%

LMI Premium

$0.00

LMI with State Fees

$0.00

Capitalised Amount

$0.00

Monthly Repayment (without LMI)

$0.00

Monthly Repayment (with LMI)

$0.00

Monthly Repayment Difference

$0.00

Total Interest Impact

$0.00

Additional Deposit Needed

$0.00

LMI Savings

$0.00

Time to Save (Months)

0.0

Frequently Asked Questions

LMI is insurance that protects the lender if you default on your home loan. It's required when your deposit is less than 20% of the property value (LVR above 80%).

You need to pay LMI when your loan-to-value ratio exceeds 80%. This means if your deposit is less than 20% of the property value, LMI becomes mandatory.

LMI costs vary based on your LVR, loan amount, property type, and borrower type. Rates typically range from 0.3% to 7.6% of the loan amount, with higher rates for higher LVRs.

Yes, you can avoid LMI by having a deposit of 20% or more of the property value. This keeps your LVR at 80% or below, eliminating the need for LMI.

Paying upfront avoids interest costs but requires immediate cash. Capitalising adds the premium to your loan, increasing monthly repayments and total interest paid over the loan term.

Yes, many lenders offer LMI discounts for first home buyers, typically around 10% off the standard premium rate. Check with your lender for specific offers.

Property type affects LMI rates, with houses generally having lower rates than apartments, and vacant land having the highest rates due to increased risk factors.

Owner-occupiers typically pay lower LMI rates than investors because they're considered lower risk. Investors may pay 20-30% higher premiums for the same LVR.

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