LMI Calculator 2026 — Australia

How LMI is Calculated in Australia

Lenders Mortgage Insurance (LMI) is a one-time premium charged when you borrow more than 80% of a property's value — that is, when your LVR exceeds 80%. This calculator estimates your LMI premium using published Helia and QBE tiered rate schedules, deducts stamp duty and government fees from your savings to find your true deposit, and runs four additional analyses: a buy-now vs wait comparison, a deposit sensitivity table, the true lifetime cost of capitalised LMI, and a waiver and scheme eligibility checker.

LMI costs by state — NSW, VIC, QLD, WA and more

The LMI premium rate is the same regardless of which state you buy in — it depends only on your loan amount and LVR tier. What does vary by state is stamp duty, which is deducted from your savings before your deposit is calculated. Higher stamp duty means a smaller effective deposit, which pushes your LVR above 80% more easily and increases LMI costs. In NSW, stamp duty on an $800,000 property is approximately $30,400; in QLD around $30,150; in VIC around $36,000; and in WA around $27,150. First home buyers receive significant concessions: NSW FHBs pay no stamp duty on properties up to $800,000; QLD FHBs pay no duty on new homes and land (from May 2025). Select your state in the sidebar — this calculator applies the correct concessions automatically.

Customise your scenario

1. Change savings and property price to match your situation.
2. Select your state and first-home-buyer (FHB) status.
3. Choose owner-occupied vs investment and your property type.
4. Open Buy vs Wait and enter your monthly savings and property growth estimate.
5. Select your profession to check LMI waiver eligibility in the Waivers tab.
6. Open Advanced Options to adjust interest rate, loan term, and tax rate.
7. Hit Calculate to update all results.

What each section shows

• Your Numbers: Upfront costs, deposit, loan amount, and LMI in a snapshot.
• Buy Now vs Wait: Compares the LMI cost of buying today to the property growth you'd miss while saving to 20%. Uses your monthly savings and growth rate assumption.
• Deposit Comparison: A table showing LMI at 5%, 8%, 10%, 12%, 15% and 20% deposit, plus how many months you'd need to save to reach each level.
• True Cost of LMI: If you capitalise LMI into your loan, you pay interest on it for decades. This section shows what LMI actually costs vs what it says on the tin. Also shows the after-tax cost for investment properties.
• Waiver Eligibility: Checks your profession, FHB status, single parent status, and regional location against government schemes (First Home Guarantee, Family Home Guarantee, Regional FHBG) and lender-specific professional waivers.

Behind the math

1. Upfront costs = stamp duty (with FHB concessions) + reg. fees + other costs.
2. Deposit = savings − upfront costs.
3. Loan (pre-LMI) = property price − deposit.
4. LVR = loan ÷ price × 100.
5. LMI = tiered % of loan + insurance duty. Investment loading ~15% applied if purpose = invest.
6. Loan (post-LMI) = pre-LMI loan + LMI (if capitalised).
7. Buy Now vs Wait: property price × (1 + growth%)^(months/12) to compute future price; missed growth compared to LMI cost.
8. True cost: standard loan amortisation formula for LMI portion over full loan term.
9. Tax deduction: LMI ÷ 5 × marginal tax rate × 5 = total tax saved over 5-year amortisation period.

Limitations & assumptions

• Stamp duty figures are estimates; actual may differ. ACT and NT noted as approximate.
• LMI rates reflect published Helia/QBE tiered schedules — actual lender rates vary.
• Professional waiver availability and LVR limits vary by lender and change over time — confirm with a broker.
• Government scheme place availability varies — Housing Australia operates annual caps.
• Property growth rate is your assumption; past performance does not predict future returns.
• Tax deduction estimate is indicative — consult a tax advisor.
• All figures in AUD. FHB concessions apply for owner-occupiers only.

Glossary

• LMI: Premium when LVR >80%, protecting the lender (not you).
• LVR: Loan ÷ property price (%).
• Stamp duty: State tax on property purchases; FHB exemptions may apply.
• FHB: First-time owner-occupier buyer; may attract state concessions.
• Capitalise LMI: Add LMI to your loan balance instead of paying upfront.
• HGS: Home Guarantee Scheme — federal government program enabling FHBs to buy with 5% deposit and no LMI.
• FHG: Family Home Guarantee — 2% deposit scheme for eligible single parents.

Frequently asked questions about LMI in Australia

• What is LMI? A one-time insurance premium charged when you borrow more than 80% of a property's value (LVR > 80%). It protects the lender — not you — if you default. It is typically capitalised into your loan, meaning you pay interest on it for years.
• How much is LMI on a $600,000 property? Roughly $5,500 with a 15% deposit (85% LVR), $9,500 with a 10% deposit (90% LVR), or over $18,000 with a 5% deposit (95% LVR), including insurance duty. Use this calculator for a precise figure based on your state and deposit.
• How much is LMI on an $800,000 property? Typically around $8,500 at 15% deposit, $15,800 at a ~89% LVR (after stamp duty reduces savings), or $25,000+ at 95% LVR. Your state's stamp duty significantly affects the final number — QLD and NSW have similar duty levels; VIC is higher.
• How much deposit do I need to avoid LMI? At least 20% of the purchase price, keeping your LVR at 80% or below. You can also avoid LMI with a smaller deposit through the First Home Guarantee (5%), the Family Home Guarantee for single parents (2%), a profession-based lender waiver, or a guarantor loan.
• Is LMI different in NSW vs QLD? The LMI rate is identical across states — it's based on loan size and LVR. What differs is stamp duty: NSW charges ~$30,400 on an $800k property; QLD ~$30,150. QLD FHBs pay no stamp duty on new homes (from May 2025), while NSW FHBs pay none on any property up to $800,000. Lower stamp duty means a bigger effective deposit and lower LVR.
• Should I pay LMI upfront or add it to the loan? Adding it to the loan means paying interest on it for 25–30 years, which can more than double the true cost. Paying upfront saves money if you have the cash. The True Cost tab shows the exact dollar difference for your scenario.
• Can I avoid LMI? Yes: 20%+ deposit, First Home Guarantee (5% deposit), Family Home Guarantee (2% for single parents), Regional First Home Buyer Guarantee (5%), profession waiver, or a guarantor. The Waivers tab checks all of these against your inputs.
• Is it better to buy now with LMI or wait? In most rising markets, paying LMI is cheaper than the property growth you'd miss while saving to 20%. The Buy vs Wait tab models your specific numbers using your monthly savings rate and growth assumption.
• Is LMI tax deductible? For investment properties only — as a borrowing expense spread over 5 years. Not deductible on your primary residence. The True Cost tab estimates the after-tax net cost at your marginal rate.
• What is the First Home Guarantee? A federal government scheme where Housing Australia guarantees part of your loan, letting eligible first home buyers purchase with just a 5% deposit and no LMI. Places are limited each financial year. Price caps apply by state.

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Disclaimer: This tool provides general estimates only and is not financial advice. Tepuy Solutions makes no guarantees as to accuracy. Seek professional guidance before making financial decisions. See our full disclaimer.