Australian LMI Calculator
Estimate lenders mortgage insurance on your home loan — LMI premiums based on your deposit size and loan-to-value ratio in AUD.
AU LMI Calculator
2025–26 · Indicative LMI on home loans
LMI Summary
INDICATIVEYour LMI summary
A plain-English read of this estimate. Figures are indicative — actual LMI premiums are set by the LMI provider (such as Helia or QBE) and the lender, and vary between them.
LMI across different deposit sizes
Indicative LMI premium at different deposit sizes for the property value entered, with the loan purpose and state selected above. A deposit of 20% or more (LVR at or below 80%) generally removes the LMI requirement.
| Deposit | Loan Amount | LVR | Est. LMI (incl. duty) |
|---|
LVR bands & indicative premium
LMI premiums rise as the LVR band and loan size increase. The table below shows the indicative premium-rate range used by this calculator for the loan size entered — the highlighted row is the current LVR band.
| LVR Band | Indicative Rate | Est. Premium (this loan) | Position |
|---|---|---|---|
| 80% or below | No LMI | AUD 0 | — |
| 80.01% – 85% | 0.97% | AUD 6,111 | — |
| 85.01% – 90% | 1.94% | AUD 12,222 | ◀ Current band |
| 90.01% – 95% | 3.40% | AUD 21,420 | — |
Ways borrowers reduce or remove LMI
LMI is triggered by an LVR above 80%. The options below describe how the requirement can change — eligibility and terms are set by the relevant scheme, lender, or insurer.
5% Deposit Scheme
Eligible first home buyers can purchase with a 5% deposit — and single parents or legal guardians with 2% — without paying LMI, under the Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme). Income caps were removed and places uncapped from 1 October 2025, subject to property price caps.
Family guarantee
Some lenders offer a family security guarantee, where a family member uses equity in their own property as additional security. This can reduce the effective LVR below 80% and remove the LMI requirement. Terms and risks are set by the lender.
Larger deposit
A deposit of 20% or more brings the LVR to 80% or below, which generally removes the LMI requirement entirely. Each additional percentage point of deposit reduces both the loan and, where LMI still applies, the premium band.
Industry waivers
Certain lenders waive LMI for borrowers in specific professions (for example some medical, legal, or accounting roles) up to a set LVR. Waivers are lender-specific and subject to eligibility and income criteria.
How Lenders Mortgage Insurance Works in Australia
A reference guide to LMI — when it applies, how premiums are structured, the Australian Government 5% Deposit Scheme, and worked examples. Framework figures are verified against official sources; premium figures are indicative.
The LMI Landscape
Lenders Mortgage Insurance is a one-off premium charged when a borrower has a deposit of less than 20% — that is, a Loan-to-Value Ratio above 80%. Per ASIC MoneySmart, LMI protects the lender if the borrower defaults and the property sells for less than the outstanding loan balance; it does not protect the borrower. It is separate from mortgage protection insurance, which covers the borrower against events such as illness or loss of income.
LMI premiums are set commercially by the LMI providers — primarily Helia (formerly Genworth) and QBE — and by each lender's own schedule. Because of this, the same loan can attract different premiums at different lenders. The premium increases with both the LVR and the loan amount, and is generally higher for investment lending than for owner-occupiers.
From 1 October 2025, the Home Guarantee Scheme was renamed the Australian Government 5% Deposit Scheme and expanded: income caps were removed, the number of places became unlimited, and property price caps were increased. Eligible first home buyers can now purchase with a 5% deposit — and single parents or legal guardians with 2% — without paying LMI, subject to location-based price caps.
How LMI Applies in Common Situations
How LMI generally applies beyond a standard first purchase. Treatment depends on the lender's policy and the borrower's circumstances — these are general descriptions only.
First home buyers
LMI applies if the deposit is below 20%, unless an exemption applies. Eligible first home buyers can avoid LMI entirely through the Australian Government 5% Deposit Scheme, buying with a 5% deposit where the property is within the relevant price cap.
Investors
Investment purchases generally do not qualify for the 5% Deposit Scheme, so LMI typically applies if the deposit is under 20%. Investor LMI premiums are usually higher than for owner-occupiers. LMI on an investment loan may be tax deductible — confirm treatment with a registered tax agent.
Refinancing
When refinancing, the lender reassesses the loan as if it were new. If the LVR is still above 80%, LMI may apply again, even if it was paid on the original loan — LMI generally does not transfer between loans or lenders.
Building / construction
Construction loans generally still attract LMI where the LVR is above 80%, calculated on the total land and build cost. Under the 5% Deposit Scheme, house-and-land and vacant land with a building contract may be eligible if the combined value is within the price cap.
Key Comparisons
How LMI compares across loan purposes, payment methods, and the official 5% Deposit Scheme price caps that determine eligibility by location.
Owner-Occupier vs Investor
| Factor | Owner-Occupier | Investor |
|---|---|---|
| LMI threshold | LVR above 80% | LVR above 80% |
| Premium level | Standard schedule | Generally higher than owner-occupier |
| 5% Deposit Scheme | Available to eligible first home buyers | Generally not available |
| Tax treatment of LMI | Generally not deductible | May be deductible — confirm with a tax agent |
Pay Upfront vs Capitalise into the Loan
| Factor | Pay Upfront | Capitalise (add to loan) |
|---|---|---|
| When paid | At settlement, as a one-off cost | Added to the loan balance, repaid over time |
| Effect on loan | Loan amount unchanged | Loan amount increases by the premium |
| Interest cost | No interest on the premium | Interest accrues on the higher balance |
| Upfront cash needed | Higher at settlement | Lower at settlement |
5% Deposit Scheme — Property Price Caps (effective 1 October 2025)
| State / Territory | Capital City & Regional Centres | Other Areas |
|---|---|---|
| New South Wales | AUD 1,500,000 | AUD 800,000 |
| Victoria | AUD 950,000 | AUD 650,000 |
| Queensland | AUD 1,000,000 | AUD 700,000 |
| Western Australia | AUD 850,000 | AUD 600,000 |
| South Australia | AUD 900,000 | AUD 500,000 |
| Tasmania | AUD 700,000 | AUD 550,000 |
| Australian Capital Territory | AUD 1,000,000 | AUD 1,000,000 |
| Northern Territory | AUD 750,000 | AUD 600,000 |
Worked Examples
Illustrative scenarios showing how LMI applies in practice. Premium figures are indicative examples only and do not reflect any individual's circumstances or any specific lender's quote.
Australian LMI Snapshot
Lenders Mortgage Insurance by deposit size, LVR band, loan amount, and state
ASIC MoneySmart · 5% Deposit Scheme caps from 1 Oct 2025LMI Cost Analysis
Indicative premium by deposit, LVR band, and loan size
Insurance Duty by State
State duty added on top of the LMI premium
Cost Breakdown
AUD 600,000 purchase, 10% deposit (indicative)
Scheme Price Caps
5% Deposit Scheme cap, capital city (AUD '000)
| State / Territory | Capital City / Regional Centre Cap | Rest of State Cap | Insurance Duty on LMI |
|---|---|---|---|
| NSW | AUD 1,500,000 | AUD 800,000 | 0% |
| VIC | AUD 950,000 | AUD 650,000 | 10% |
| QLD | AUD 1,000,000 | AUD 700,000 | 9% |
| WA | AUD 850,000 | AUD 600,000 | 10% |
| SA | AUD 900,000 | AUD 500,000 | 11% |
| TAS | AUD 700,000 | AUD 550,000 | 10% |
| ACT | AUD 1,000,000 | — | 0% |
| NT | AUD 600,000 | — | 10% |
LMI & First Home Buyer News
Recent Housing Australia, Treasury, and ASIC MoneySmart announcements affecting Lenders Mortgage Insurance and deposit support — sourced from official government channels.
Northern Territory Price Cap Splits Into Two Tiers
The Australian Government 5% Deposit Scheme property price cap for the Northern Territory moves from a single territory-wide figure to separate Darwin and rest-of-territory caps from 1 July 2026.
Key Points
- Until 30 June 2026, the NT cap is a single figure of AUD 600,000 territory-wide
- From 1 July 2026, Darwin is set at AUD 750,000 and the rest of the NT remains at AUD 600,000
- Eligible first home buyers in Darwin gain access to a higher price ceiling
- Caps elsewhere are unchanged by this NT-specific update
Effect
A higher Darwin cap widens the range of eligible properties for first home buyers using the scheme in the territory.
To Note
Caps are ceilings on the eligible property price, not target prices, and are set by the contract price of the home.
Help to Buy Shared-Equity Scheme Opens for Applications
The Australian Government Help to Buy Scheme opened for applications on 5 December 2025 — a shared-equity model where the Government takes a stake in the property, separate from the LMI-avoidance pathway of the 5% Deposit Scheme.
Key Points
- Government contributes up to 40% of the purchase price for a new home, or 30% for an existing home
- Eligible buyers can enter with a deposit as low as 2%
- Income thresholds are AUD 100,000 for individuals and AUD 160,000 for joint applicants and single parents
- Up to 40,000 households assisted over four years; operational in participating states and territories at launch
- The Government's share is repaid when the home is sold or through voluntary repayments
Effect
Help to Buy reduces both the deposit and the loan size through shared equity; it is distinct from the 5% Deposit Scheme guarantee.
To Note
Applications are lodged through participating lenders, with more lenders expected to join during 2026.
5% Deposit Scheme Expanded — Unlimited Places, No Income Caps
From 1 October 2025, the scheme was expanded so all eligible first home buyers can purchase with a 5% deposit and avoid Lenders Mortgage Insurance, with place limits and income caps removed.
Key Changes
- Number of government-backed guarantee places is now uncapped
- Previous income limits removed entirely
- Property price caps increased across all states and territories
- Eligible first home buyers use a 5% deposit; eligible single parents and guardians use a 2% deposit
- Eligible buyers avoid LMI because the Government guarantees the gap up to 20%
Effect
A far wider group of first home buyers can now access an LMI-free pathway, regardless of income, subject to property price caps.
To Note
Applicants must be Australian citizens or permanent residents and meet the lender's standard borrowing checks.
Lenders Mortgage Insurance — Frequently Asked Questions
Common questions about LMI in Australia — what it is, what it costs, how to avoid it, and special cases — verified against ASIC MoneySmart, the 5% Deposit Scheme, and ATO guidance.
LMI is a one-off cost a lender may charge when a borrower takes out a home loan for more than 80% of the property's value. It is an insurance policy that protects the lender — not the borrower — if the borrower cannot repay the loan and the property sale does not cover the outstanding balance.
ASIC MoneySmart — LMILMI generally applies when the loan exceeds 80% of the property value — that is, when the loan-to-value ratio (LVR) is above 80%. A deposit of 20% or more usually means LMI is not required, unless an LMI-free pathway such as a government guarantee applies.
ASIC MoneySmart — LMILMI protects the lender. If a borrower defaults and the lender recovers less than the amount owing after selling the property, the insurer covers the lender's shortfall. The borrower pays the premium but receives no insurance cover from the policy.
ASIC MoneySmart — LMILVR (loan-to-value ratio) is the loan amount expressed as a percentage of the property value: LVR = loan ÷ property value × 100. For example, a AUD 540,000 loan on a AUD 600,000 property is a 90% LVR. The higher the LVR, the higher the indicative LMI premium tends to be.
ASIC MoneySmart — LMILMI is provided by a small number of specialist insurers — primarily Helia (formerly Genworth) and QBE — and by some lenders that self-insure. Premiums are set commercially by the insurer and lender, so the same loan can attract different premiums at different lenders.
ASIC MoneySmart — LMIThe premium depends on the loan amount, the LVR, and the lender's and insurer's rates, so there is no single published figure. The indicative model used by this calculator spans roughly 0.5% to 4.5% of the loan, rising as the LVR moves above 80% and as the loan size increases. These are estimates only, not insurer quotes.
ASIC MoneySmart — LMIMany lenders allow the LMI premium to be capitalised — added to the loan balance rather than paid upfront. Capitalising the premium spreads it across the loan term, so it is repaid with interest and increases total repayments over the life of the loan.
ASIC MoneySmart — LMIIn some states and territories, an insurance duty is charged on the LMI premium and added on top. As indicative current rates, NSW and the ACT charge 0%, while other states and the NT charge up to around 11% (for example SA 11%; WA, VIC, TAS and the NT 10%; QLD 9%). Duty rates are set by each state and territory revenue office and can change.
State revenue offices (e.g. SRO Victoria)The premium is generally non-refundable. A partial refund may be available in limited circumstances if the loan is repaid very early — typically within the first couple of years — but this depends on the insurer's and lender's policy and is not guaranteed.
ASIC MoneySmart — LMICommon LMI-free pathways include: saving a 20% deposit (an 80% LVR); using the Australian Government 5% Deposit Scheme as an eligible buyer; using a family guarantee (a guarantor provides additional security); or qualifying for a lender waiver available to certain professions. Eligibility and availability vary by lender.
ASIC MoneySmart — LMIThe Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme) lets eligible first home buyers purchase with a 5% deposit, and eligible single parents or guardians with a 2% deposit, without paying LMI. The Government guarantees the gap up to 20%. From 1 October 2025, places are uncapped and there are no income caps, subject to property price caps.
5% Deposit Scheme (Housing Australia)A deposit of 20% or more (an LVR of 80% or below) generally means LMI is not charged. LMI can also be avoided with a smaller deposit through a government guarantee such as the 5% Deposit Scheme, a guarantor arrangement, or an eligible professional waiver.
ASIC MoneySmart — LMINo. An LMI policy is specific to the original loan and lender, so it does not transfer when refinancing to a different lender. If the new loan is still above 80% LVR, a new LMI premium may be charged. Refinancing within the same lender may avoid a new premium in some cases.
ASIC MoneySmart — LMIFor an investment (income-producing) property, the LMI premium is treated by the ATO as a borrowing expense and is deducted over five years, or the loan term if shorter — not all at once. For an owner-occupied home, the LMI premium is not deductible.
ATO — Borrowing ExpensesPremiums for investment loans can be higher than for owner-occupier loans at the same LVR and loan size, because lenders and insurers may price investor lending as higher risk. Actual differences vary by insurer and lender; the calculator applies an indicative loading for investment purpose.
ASIC MoneySmart — LMIImportant Disclaimer
For educational and informational purposes only. This calculator produces estimates of Lenders Mortgage Insurance (LMI) based on the inputs provided and an indicative premium model. It applies the standard framework where LMI generally arises when a loan exceeds 80% of the property value, and references the Australian Government 5% Deposit Scheme as an LMI-free pathway for eligible buyers. The calculator simplifies many aspects of LMI pricing and does not capture every loan product, borrower profile, or individual circumstance.
Premiums are indicative and set by insurers and lenders, not the government. LMI premiums are determined commercially by the mortgage insurer (such as Helia or QBE) and the individual lender. The premium figures and percentage rates shown are illustrative estimates only and are not quotes. Actual premiums vary by lender, loan amount, loan-to-value ratio, loan term, and borrower profile, and any state insurance duty applied is set by the relevant state revenue office. An actual premium can be obtained from a lender during the loan application process.
No warranty of accuracy. While Money Snap takes reasonable care to source the LMI framework, scheme rules, and property price caps from official authorities (ASIC MoneySmart, the Australian Government 5% Deposit Scheme administered by Housing Australia, and the ATO), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Premium rates, scheme rules, price caps, and duty rates change — figures shown may be out of date, and circumstances not captured by the inputs may materially affect the actual premium.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results do not constitute financial, tax, credit, or legal advice and use of this calculator does not create an advisory relationship. For figures specific to a loan, obtain a quote from a lender or licensed mortgage broker; for scheme eligibility, refer to the Australian Government 5% Deposit Scheme; and for general guidance, refer to ASIC MoneySmart.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with the relevant authority or provider before relying on them. Use of this calculator is subject to our Terms of Use.
Official data sources
Sources: ASIC MoneySmart — Lenders Mortgage Insurance. Scheme and price caps: Australian Government 5% Deposit Scheme (Housing Australia, from 1 Oct 2025).