LMI Calculator
Estimate how much Lenders Mortgage Insurance (LMI) you may pay based on your property value, deposit and loan-to-value ratio (LVR).Use our Lenders Mortgage Insurance calculator to compare estimated LMI premiums across different LVR bands and see how increasing your deposit could reduce the amount you pay.
Stryve LMI Calculator
Three ways to avoid LMI
You may not have to pay it at all.
- Guarantor loanA family member uses equity in their property as security, often removing LMI entirely.
- First Home GuaranteeThe government scheme that lets first home buyers purchase with as little as 5% deposit and no LMI.
- Professional waiverSome lenders waive LMI up to 90% LVR for eligible professions - doctors, lawyers, accountants and more.
Estimate only, based on indicative premium rates. Actual LMI depends on the lender, insurer and your full circumstances. Not a quote.
Estimated LMI premium
$13,005
LVR Band 85-90%- Loan
- $675,000
- LVR
- 90.00%
The LVR cliff
premium by bandLMI jumps at each threshold. Crossing below one can be worth far more than the deposit it takes to get there.
Another $10,000 of deposit could cut your premium by $999.
Worked example
Say you're buying a $750,000 home with a $75,000 deposit. That means borrowing $675,000, which is 90% of the property's value - above the 80% LVR threshold, so LMI applies. In the 85-90% band that's an estimated premium of about $13,005 in NSW, usually added to your loan rather than paid in cash. Save another $10,000 of deposit and the premium drops by about $999 - or reach a 20% deposit and it disappears entirely.
What Is Lenders Mortgage Insurance (LMI)?
Lenders Mortgage Insurance (LMI) protects the lender if a borrower cannot repay their home loan and the property sale does not cover the outstanding debt. It commonly applies when you borrow more than 80% of a property's value, although requirements vary by lender and loan type.
For buyers, LMI can make it possible to purchase a property with a smaller deposit rather than waiting to save 20%. Because the premium can add thousands of dollars to a home loan, Stryve Finance recommends estimating the potential amount before deciding how much deposit to contribute.
How Is LMI Calculated?
An LMI calculation is mainly influenced by your loan amount and loan-to-value ratio (LVR). Your LVR compares the amount you borrow with the property's value, and a higher LVR generally results in a higher LMI premium.
Increasing your deposit reduces the amount you need to borrow and lowers your LVR. Even a relatively small increase in deposit can sometimes move your loan into a different LVR band and reduce the estimated premium.
The Stryve Finance Lenders Mortgage Insurance calculator uses your property value, deposit, state or territory, and loan purpose to estimate LMI. Actual pricing varies between lenders and insurers, so treat the result as a planning estimate rather than a lender quote.
Paying LMI: Upfront or Capitalised
Depending on the lender and loan structure, you may pay LMI upfront or capitalise it into the home loan. Capitalising LMI means the premium is added to your loan balance instead of being paid entirely from your available cash at settlement.
This can reduce the amount of cash you need upfront, but it also increases the amount you borrow. As a result, you may pay interest on the LMI premium over the life of the loan.
How to Avoid LMI
The most common way to avoid LMI is to keep your LVR at or below the lender's applicable threshold, often by contributing a larger deposit. However, a full 20% deposit isn't the only option.
Some buyers may be able to avoid or reduce LMI through a guarantor home loan, an eligible government low-deposit scheme, or lender-specific waivers available to certain professions. Eligibility and lending criteria vary, so the right option depends on your circumstances.
Before delaying a purchase simply to avoid LMI, it can be useful to compare the estimated premium with your broader buying position. Stryve Finance can help buyers assess how deposit size, LVR and available loan options may affect the overall cost of getting into the market.
LMI for Property Investors
LMI can also apply when purchasing an investment property if the loan-to-value ratio is above the lender's threshold. The premium is calculated similarly, although pricing and lending criteria may differ from owner-occupied loans.
For property investors, LMI may be treated as a borrowing expense for tax purposes and may be deductible over time, depending on your circumstances. Tax treatment can vary, so confirm your position with a qualified tax professional.
LMI Calculator FAQs
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What Your LMI Estimate Means
A Small Deposit Change Can Make a Difference
LMI premiums can change as your loan-to-value ratio (LVR) moves between pricing bands. Increasing your deposit may lower both your LVR and estimated LMI, so it is worth comparing a few deposit amounts before deciding how much to contribute.
Capitalising LMI Increases Your Loan Balance
Some lenders may allow the LMI premium to be added to your home loan rather than paid entirely upfront. This can reduce the cash needed at settlement, but it also increases your loan balance and may mean paying interest on the premium over time.
LMI Protects the Lender, Not the Borrower
Lenders Mortgage Insurance protects the lender if the loan cannot be repaid and the property sale does not cover the outstanding debt. It does not provide insurance protection for you or your property, so you may still need separate personal and property insurance.
Your Result Is an Estimate, Not a Quote
The calculator provides a planning estimate based on the information you enter. Actual LMI premiums can vary between lenders, insurers and loan structures. Stryve Finance can compare lender options and confirm whether LMI, a waiver, or another low-deposit option may apply to your situation.
