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LMI Calculator

Buying with less than a 20% deposit usually means lenders mortgage insurance. Pop in your numbers for your loan-to-value ratio, an indicative premium range, and exactly how much more deposit would sidestep LMI altogether. No sign-up needed.

The purchase price, or a fair estimate of value.
Your savings going in, before costs like stamp duty.
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Your loan-to-value ratio (LVR)
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Loan amount
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Indicative LMI premium

Want this emailed to you? I'll send your estimate plus the specific ways to bring LMI down or avoid it - a bigger deposit, a guarantor, or a government scheme if you qualify.

This calculator provides an indicative estimate only, based on the property value and deposit you enter. The premium range is drawn from a published indicative LMI premium schedule (reviewed July 2026) and shown as a range because premiums vary by lender, insurer, loan purpose, property type and your circumstances, and may attract state stamp duty on the premium. It is not an offer of credit, a quote, or financial advice. Lending criteria, fees and rates vary by lender and change over time. Talk to us for an assessment based on your situation.

The Ways Around LMI

LMI is a one-off cost of borrowing with a smaller deposit - sometimes worth paying to buy sooner, sometimes worth sidestepping. It's rarely all-or-nothing. Here are the levers that actually move it:

  • A bigger deposit. The premium doesn't fall smoothly - it steps down at each LVR band (95%, 90%, 85%, then gone at 80%). The calculator shows exactly how much more deposit gets you to 80% and out of LMI entirely. Even crossing one band down can cut the premium noticeably.
  • A guarantor. A family member using equity in their own property as security can lift your effective deposit above 20% and remove LMI. It's a real commitment for them, so it's a conversation to have carefully - but for many first buyers it's the difference-maker.
  • A government scheme. The First Home Guarantee lets eligible first buyers purchase with as little as 5% deposit without paying LMI, because the government guarantees part of the loan. Places and price caps apply. Check where you stand with the first home buyer eligibility checker.
  • A professional waiver. Some lenders waive LMI for certain professions - medical, legal, accounting and a few others - up to higher LVRs. Eligibility and the LVR allowed vary by lender and change over time, so it's never a promise, but if it fits you the saving can be large.

How the estimate is worked out

Your LVR is your loan divided by the property value. Above 80%, I match it to an indicative premium band and show a range rather than a single figure, because two lenders can price the same loan differently. Before you commit to anything, the real premium comes from the actual lender and insurer - and that's worth pinning down alongside your borrowing power and upfront costs. The borrowing power calculator and the VIC stamp duty calculator are the natural next two to run.

Common Questions

LMI, Answered Honestly

What is LMI and who does it protect?+
Lenders mortgage insurance protects the lender, not you. If you borrow with a deposit under 20% and later can't repay, and the sale of the property doesn't cover the loan, LMI covers the lender's shortfall - and the insurer can still pursue you for it. Most people are surprised by this. You pay the premium, but the cover is the bank's. It exists so lenders will say yes to smaller deposits, which can be genuinely useful - just go in knowing what it is.
Can LMI be added to the loan?+
Usually yes. Most lenders let you capitalise the premium - add it on top of the loan rather than paying it upfront - as long as it stays within their limits. It softens the cash hit at settlement, but you then pay interest on the premium for the life of the loan, so it costs more over time. Whether that trade is worth it depends on your deposit and your plans. It's an easy thing to model together.
Is paying LMI ever the right move?+
Sometimes, yes - and this is where the honest answer matters. If waiting to save a 20% deposit means years of rising prices and rent, paying LMI to buy sooner can work out ahead, even though it's a real cost. Other times, waiting a few months to cross a lower LVR band, or using a guarantor or a government scheme, is clearly better. There's no one answer - it depends on your numbers, the market you're buying in, and your timeline. This is general information, not advice for your situation.
Are there professions that get LMI waived?+
Some lenders waive or reduce LMI for certain professionals - commonly medical, legal, accounting and a few others - lending up to 85%, 90% or occasionally 95% without a premium. Eligibility, the professions covered and the LVR allowed all vary by lender and change over time, so it's never a guarantee. If you're in one of those fields it's absolutely worth checking, because the saving can be substantial. I can tell you quickly whether any current policy fits you.

Want to Know Which Way Around LMI Fits You?

Deposit, guarantor, scheme or waiver - I'll tell you which levers you actually qualify for and what each one saves, over a coffee or a quick call. Obligation-free, and no fee charged to you.

Book a Deposit Strategy Chat
📞 0477 979 377 ✉ michael@mochafinance.com.au