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LMI estimator — what insurance actually costs
Lender's Mortgage Insurance kicks in above 80% LVR and protects the lender, not you. Below is an indicative premium based on blended insurer rate cards — actual quotes vary by lender.
LVR: 90.0%
Estimated LMI premium
$17,456
LVR 90.0% on a owner-occupier loan. Premium reflects LMI insurer rate × $720,000 loan, plus ~10% LMI stamp duty.
Monthly cost if capitalised
$105
Indicative @ 6% / 30y if added to the loan
Deposit needed to avoid LMI
$80,000
Top-up to reach 80% LVR
Premium grid blended from publicly disclosed Helia / QBE / CBA / Westpac LMI rate cards (2024-25). Your actual quote will depend on your specific lender’s arrangement with their LMI provider.
How LMI actually works
You pay it. The lender keeps it.LMI is a one-off insurance premium that reimburses the lender if you default and the sale of the property doesn’t cover the outstanding loan. It does nothing for you — but it’s the price of admission for borrowing above 80% LVR.
The premium grows non-linearly with LVR. A $700k loan at 81% LVR might cost $5k. The same loan at 95% LVR can exceed $30k. Pushing your deposit up by even 1% can save thousands.
Most lenders let you capitalise it — meaning the premium gets added to your loan balance and amortised over the term. That spreads the pain but you pay interest on the LMI for 30 years.
LMI waivers exist for medical professionals, lawyers, accountants, and military personnel — sometimes up to 90% LVR with no premium at all. Worth asking a broker about if you qualify.
Want a real number, not a ballpark?
These figures are estimates. A 30-min broker consult will run your specific scenario against the actual lender policies — no fees, no obligation.
Important: This calculator provides an estimate only and does not constitute credit advice. Actual rates, repayments, fees and approval are subject to lender policy and your individual circumstances. Comparison rates are based on a $150,000 loan over 25 years on a secured basis — see footer for the full disclaimer.