About the LMI Calculator
Lenders Mortgage Insurance protects the lender (not you) if you default on a loan with a small deposit — it's typically required when you borrow more than 80% of the property's value. This calculator estimates your loan-to-value ratio (LVR) and gives an indicative premium based on typical industry rate bands.
How it works
LVR = loan amount ÷ property value, as a percentage. Above 80% LVR, an indicative premium rate (a percentage of the loan amount) is applied based on which LVR band you fall into — the higher your LVR, the higher the rate, since the insurer is taking on more risk.
Assumptions and behaviour
- Uses illustrative LVR-banded rates, not any specific mortgage insurer's actual rate card, which is commercially set and varies by lender, loan size and other factors.
- No LMI is shown below 80% LVR, the common threshold most lenders use.
- Some lenders offer LMI waivers for certain professions (doctors, accountants, etc.) at higher LVRs, which this doesn't account for.
Limitations
- This is a rough planning estimate only — the actual premium is set by the mortgage insurer via your specific lender and can differ meaningfully from this figure.
- LMI can sometimes be capitalised into the loan rather than paid upfront, which changes your total interest cost — not modelled here.
- Get an exact quote from your lender before budgeting around this number.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
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