Use this lenders mortgage insurance (LMI) calculator to estimate the premium on a home loan with less than a 20% deposit. Enter the property value and the deposit available for the purchase price. Before you budget for LMI, check whether a lender waiver, the 5% Deposit Scheme or a family guarantee could help you avoid it.
I'd compare the cost of buying with your current deposit against saving more. The right choice depends on the repayment, the cash you would have left and the loans you qualify for. A lower LMI bill is useful, but it is only one part of the cost.
How to use the LMI calculator
Enter the price you expect to pay and your deposit towards that price. Keep stamp duty, legal fees, inspections and your cash reserve separate. If you have $100,000 saved but need $20,000 for costs and a reserve, enter an $80,000 deposit. Our deposit calculator helps work through those allowances.
The calculator subtracts your deposit from the property value to estimate the loan. It then uses the loan amount and loan-to-value ratio (LVR) to estimate LMI. LVR means the loan divided by the property value: a $720,000 loan on an $800,000 property is 90% LVR.
The result is a starting estimate, not a lender quote. This tool does not compare banks or check your occupation, government scheme eligibility, loan purpose, income or property location. It does not calculate the insurance duty applicable to your transaction or add LMI to your loan balance. Ask for a quote that states the premium, taxes and total amount payable.
Close to a threshold? The calculator rounds LVR to 1 decimal place before estimating LMI. A result of 80% can therefore hide a loan just above 80%. Have the exact loan and lender valuation checked before relying on a $0 result. Estimates above 95% LVR need an individual assessment.
How much is LMI with a 5%, 10% or 15% deposit?
These examples use the same $800,000 property so you can see what changes when the deposit increases. They reproduce this calculator's indicative results checked on 12 September 2026. They are not lender quotes and do not apply any waiver or government guarantee.
| Deposit towards price | Loan before LMI | LVR | Indicative LMI premium |
|---|---|---|---|
| $40,000 (5%) | $760,000 | 95% | $28,880 |
| $80,000 (10%) | $720,000 | 90% | $12,960 |
| $120,000 (15%) | $680,000 | 85% | $5,304 |
| $160,000 (20%) | $640,000 | 80% | $0 usually |
The figures exclude any applicable insurance duty, buying costs and interest on financed LMI. The model uses broad pricing bands, so its changes between deposit levels are not a promise that a lender's quote will change by the same amount. The table also does not establish that a lender will approve the loan, particularly if you need to add the premium to it.
For example, saving another $40,000 takes the deposit from 10% to 15% and reduces this model's premium by $7,656. You would also borrow $40,000 less before LMI. I'd weigh that against how long saving takes, rent during that time and the reserve you need. Future property prices and interest rates could move either way.
How much LMI do I have to pay?
Your lender's quote decides the amount. Two people with the same deposit percentage can receive different premiums because their loan amounts, lender, loan purpose, property and eligibility differ. There is no single national LMI percentage that works for every borrower.
If your situation changes, ask for a revised quote. A different valuation or a small change in the amount borrowed can move you into another pricing band. Use our home affordability guide to check the repayment and full buying budget alongside the LMI estimate.
What is lenders mortgage insurance, and who does it protect?
LMI allows a lender to consider a smaller-deposit loan while insuring some of its risk. The lender commonly passes the cost to you. It usually becomes relevant when borrowing more than 80% of the lender's accepted property value, although loan products and waivers differ.
LMI protects the lender if you cannot repay the loan and the property sale leaves a shortfall. It does not make your repayments if you lose your job or become ill, and it does not cancel a debt you still owe. QBE's borrower fact sheet explains how a shortfall can remain recoverable from the borrower.
For a simple example, a loan balance of $855,000 and net sale proceeds of $800,000 leave a $55,000 shortfall. An insurer paying a claim to the lender does not mean that $55,000 is forgiven. Our lenders mortgage insurance guide explains the cover in more detail.
Watch: Is Lenders Mortgage Insurance good or bad?
Does LMI approval mean the home loan is approved?
No. The lender still checks your income, spending, debts, credit history, deposit evidence and the property. Where insurer approval is required, its requirements must also be met. Credit history and evidence of your savings also form part of the assessment.
A calculator result cannot establish approval. Read our home loan pre-approval guide before relying on a borrowing limit. If an application has already run into trouble, our guide to a loan declined after pre-approval covers the next checks.
Can you avoid LMI with less than a 20% deposit?
I'd check these options before accepting the estimated premium. Each has different eligibility rules, and you still need a loan you can afford.
Professional LMI waivers
Some lenders waive LMI for eligible occupations or employers. The available loan-to-value ratio, income requirements, registration and acceptable properties vary. Your job title alone does not establish eligibility for a 90%, 95% or 100% loan.
To compare lender requirements, read our NAB review and Westpac review alongside the profession guides below. Check the eligible occupations, loan limits and ongoing costs before comparing a waiver with paying LMI.
Start with our LMI waivers guide. For more specific requirements, see home loans for nurses and lawyer LMI waivers. Our 90% home loans without LMI guide also explains options to check with a 10% deposit. Have the current lender conditions confirmed before relying on a waiver.
The Australian Government 5% Deposit Scheme
Eligible buyers can purchase with a minimum 5% deposit and no LMI through a participating lender. The scheme has no income caps or annual place limit. Property price caps, citizenship or permanent residency, ownership history and owner-occupation requirements still apply, along with the lender's approval criteria.
Eligible single parents or single legal guardians with at least one dependent child may apply with a minimum 2% deposit. The scheme's definition of single and other eligibility requirements matter. Our 5% Deposit Scheme guide explains both options and links to the current rules.
The guarantee supports the lender; you remain responsible for the loan, repayments and buying costs. It does not waive property stamp duty. Check NSW stamp duty or the Queensland and national stamp duty calculator separately. The LMI calculator above does not recognise scheme eligibility, so an eligible buyer's actual LMI may be $0 even when this tool shows a premium.
A family guarantor
A family member may offer equity in their property as extra security, helping cover a deposit gap and potentially avoid LMI. You still need sufficient income to make the repayments yourself. The guarantor takes a financial risk, including a risk to their property if you cannot repay.
Read our guarantor home loan guide before involving family. The guarantee's limit, independent advice and eventual release all need to be considered. Release requires lender approval; it does not happen automatically because your home's value rises.
How to compare LMI costs between lenders
Ask for comparisons using the same purchase price, deposit, loan purpose and loan term. Each should show the LMI or other low-deposit charge, whether it is paid upfront or added to the loan, the interest rate, fees and repayments. A cheaper premium can be outweighed by a more expensive loan.
Some lenders use a low deposit premium or risk fee instead of LMI. A loan described as having no LMI can therefore still have an extra cost. For example, CommBank explains its LMI and low-deposit options; our CommBank home loan review covers its broader loan features. Confirm the actual product and charge in the lender's quote.
Helia's LMI fee estimator asks about first home buyer status, loan term and occupancy as well as property value and deposit. Different tools use different assumptions. An insurer's estimate, this calculator and a lender's final quote do not have to match. Helia is the insurer formerly known as Genworth, so older references to a Genworth calculator refer to that earlier name.
Can you add LMI to your home loan?
Some lenders allow the premium to be added to the loan, subject to their maximum loan and LVR limits. That reduces the upfront cash needed but increases the balance on which you pay interest.
If a $720,000 loan had a quoted $12,960 premium added, the balance would become $732,960 before any other financed costs. On an $800,000 valuation, that is 91.62% LVR. The lender must accept that total. Use our mortgage calculator for an initial borrowing estimate. Ask your broker to compare repayments with and without the financed premium using the same rate and term.
Monthly LMI options also exist through some lenders. Ask what is available, the total cost and when payments end; this page's calculator estimates an upfront premium rather than a monthly LMI arrangement.
Can refinancing trigger another LMI premium?
Yes. LMI generally does not transfer to a new lender. If your new loan is above the lender's usual LMI threshold, you may need to pay another premium unless an exemption or alternative applies. Extra borrowing or a lower valuation can affect that assessment.
Before switching, compare any new LMI with the rate saving, discharge and application costs, and remaining loan term. Our refinancing guide helps with that comparison. Reaching 80% LVR does not automatically refund the premium you paid on the old loan.
LMI calculator FAQs
How accurate are LMI calculators?
They provide a planning estimate. This calculator uses property value, deposit and broad loan/LVR pricing bands. It does not select a lender or assess eligibility, and it does not calculate your applicable insurance duty. Ask for a current lender quote before committing funds.
Is LMI different in Queensland, NSW, Victoria or other states?
The lender and insurer set the premium, while property location and applicable insurance-duty rules can affect the final cost. This tool does not ask for your state. Insurance duty on LMI is also separate from transfer duty on the property purchase.
Can investors get LMI discounts?
Some lenders may offer discounts or waivers for an eligible investment loan, but they are not automatic. Confirm the loan purpose, property and borrower requirements. The government 5% Deposit Scheme is for eligible owner-occupiers, not investment purchases.
Are there professions that can borrow 100% without LMI?
A profession alone does not guarantee a 100% loan. A specific lender product or an acceptable guarantee may allow a higher loan, but the security, loan limits, occupation and repayment assessment all matter. Check the actual product before treating a waiver as a no-deposit approval.
How much can I borrow without paying LMI?
Usually up to 80% of the lender's accepted property value, although a qualifying waiver, government guarantee or family guarantee may allow more. This is a security threshold, not a measure of how much your income can support.
Do all lenders charge the same LMI?
No. Insurer pricing, lender arrangements, loan size, LVR and the application can change the premium. Ask for comparisons on the same assumptions, including any low deposit premium or risk fee and the loan's ongoing costs.
Does LMI cover me if I default?
No. It protects the lender. You may still owe a shortfall after the property is sold. Contact the lender promptly if repayments become difficult rather than assuming the insurance will make them for you.
Do you pay LMI upfront?
Often it is a one-off cost at the start of the loan. Depending on the lender, you may pay it upfront or add it to the loan. Some lenders offer monthly options. Ask how your specific loan handles the premium and any interest on financed costs.
Can I get an LMI refund?
Possibly, but it depends on the lender and policy. Helia says some borrowers may receive a partial refund if the loan is repaid within 2 years; this is not an entitlement under every lender's arrangement. Ask your lender about the refund terms before refinancing or paying out the loan.
Is LMI tax deductible?
LMI on a loan for your own home is generally a private expense. For a rental-property loan, eligible LMI is a borrowing expense rather than an automatic immediate deduction. Where total deductible borrowing expenses exceed $100, the ATO generally spreads the deduction over 5 years or the loan term, whichever is shorter. Private use and other circumstances can change the amount; have your tax adviser confirm it.
Check your LMI options before choosing a loan
Send us the property price, deposit available after costs, occupation and whether you are buying your first home, investing or refinancing. We'll check suitable lenders, any waiver or scheme options and the full loan cost so you can compare them on the same basis.
Or call 1300 088 065 to discuss your home loan options.
More help with your deposit and buying budget
- First home buyer guide: plan the steps from saving to settlement.
- How to save for a house deposit: compare a larger deposit with buying sooner.
- First Home Super Saver Scheme: check whether eligible super contributions could help your deposit.
- How much home can I afford?: test repayments, buying costs and the reserve you want to keep.
How this guide was checked
Written by Nathan Vecchio. Public guidance and calculator results checked on 12 September 2026. The deposit comparison uses this tool's indicative pricing, not insurer quotes or assessed client outcomes. Lender eligibility, fees and the property need to be checked for your application.
Sources
- MoneySmart: buying a house and upfront costs
- QBE: understanding lenders mortgage insurance
- QBE: borrower LMI fact sheet
- Helia: LMI fee estimator and assumptions
- Helia: LMI guidelines and refund information
- Australian Government: 5% Deposit Scheme eligibility
- Australian Government: single-parent deposit option
- CommBank: LMI and low-deposit borrowing options
- ATO: rental expenses claimed over several years
General information only. Your financial situation and the property need to be assessed before a loan recommendation or approval.