Home Loans Tool

LMI (Lenders Mortgage Insurance) Estimator

Estimate LMI cost when borrowing over 80% LVR in Australia.

Last reviewed by the myCalculator Editorial Team

This calculator uses Australian rules and Australian data sources. Results may not apply outside Australia.

Input Parameters

Calculation Results

Estimated LMI Cost
$14,175
Loan-to-Value Ratio (LVR)
90%
Total Loan Amount
$675,000
Deposit Provided
$75,000
Summary: Because your LVR is 90% (>80%), LMI applies. Estimated cost: $14,175.

Formula & How LMI (Lenders Mortgage Insurance) Estimator Works

Mathematical Formula
LMI = Loan Amount × LVR Premium Rate Tier

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.

How to Calculate LMI (Lenders Mortgage Insurance) Estimator (Step-by-Step)
  1. Enter Property Purchase Price ($): Input your target parameter value.
  2. Enter Deposit Saved ($): Input your target parameter value.
  3. Apply Formula: Calculate using LMI = Loan Amount × LVR Premium Rate Tier.
  4. 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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Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:

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