LMI (Lenders Mortgage Insurance) Estimator
Estimate LMI cost when borrowing over 80% LVR in Australia.
Last reviewed by the myCalculator Editorial Team
Input Parameters
Calculation Results
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Formula & How LMI (Lenders Mortgage Insurance) Estimator Works
Lenders Mortgage Insurance protects the lender, not you, when your deposit is under 20% of the property value. The key measure is the loan-to-value ratio (LVR). On a $750,000 property with a 10% deposit ($75,000) the loan is $675,000, so the LVR is 90%. The premium rises with the LVR and the loan size, and it varies between insurers, so ask a lender for a quote. LMI is usually a one-off cost that can be added to the loan, which means you pay interest on it. A bigger deposit, a guarantor or a government scheme such as the Home Guarantee Scheme can reduce or remove it.
- Enter Property Purchase Price ($): Input your target parameter value.
- Enter Deposit Saved ($): Input your target parameter value.
- Apply Formula: Calculate using
LMI = Loan Amount × LVR Premium Rate Tier. - Review Results: View exact computed answers, metrics, and worked mathematical proofs.
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Frequently Asked Questions (FAQs)
Can LMI be capitalized into the loan?
Yes, most Australian lenders allow adding LMI to the total loan balance.
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Authoritative Standards & Verified Reference Citations
Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:
Consumer guidance on mortgage borrowing capacity, compound interest formulas, and loan fees.
Official cash rate target announcements, monetary policy statements, and national economic statistical data.
Official U.S. Federal Funds Rate and comprehensive macroeconomic time-series data.
Key Eurozone interest rates, deposit facility rates, and monetary policy operations.
Residential mortgage serviceability buffer framework (3.0% stress test hurdle rate).
Dedicated Australian home loans, borrowing capacity, mortgage repayments & refinance modeling.