Mortgage broker tools · Lenders Mortgage Insurance
LMI calculator: indicative premiums by LVR bracket
Lenders Mortgage Insurance is the single biggest avoidable cost on a low-deposit loan. This calculator uses published Helia and QBE indicative premium rates as of early 2026. Real premium is set by the lender — confirm with your broker before relying on this number.
★Key takeaways
- ✓LMI protects the lender, not you — it is a one-off premium payable when your deposit is below 20% (LVR above 80%). Premiums escalate sharply with LVR.
- ✓Indicative premium ranges (Helia / QBE): 80-85% LVR ~ 0.5-1.0% of loan, 85-90% ~ 1.2-2.0%, 90-95% ~ 2.5-4.0%, 95%+ ~ 4.0-5.5%. Investor loans ~20% higher.
- ✓First Home Guarantee (5% deposit), Regional FHBG, and Family Home Guarantee (2% deposit for single parents) avoid LMI entirely — government guarantees the gap.
- ✓LMI is usually capitalised into the loan (you pay over 25-30 years) but is partially refundable if you discharge the loan within 1-2 years.
- ✓For investment loans, LMI is tax deductible over 5 years. For owner-occupier loans, it is not deductible. Confirm with your tax agent.
Calculator
Estimate your LMI premium
Estimated LMI premium
$10,400
Source: indicative Helia / QBE published premium schedules (cross-check at helia.com.au and qbe.com/au/lmi). Actual premium set by your lender.
Premium grid
Indicative LMI premium by LVR (% of loan)
Composite of Helia and QBE published schedules. Real premium can vary ±20% by lender, loan size, and term. Investor loans typically attract a ~20% loading on the owner-occupier premium.
| LVR bracket | Owner-occupier % | Investor % | On $500k loan (owner) | On $800k loan (owner) |
|---|---|---|---|---|
| 80.01 – 81% | 0.475% | 0.575% | $2,375 | $3,800 |
| 81.01 – 82% | 0.572% | 0.694% | $2,860 | $4,576 |
| 82.01 – 83% | 0.728% | 0.880% | $3,640 | $5,824 |
| 83.01 – 84% | 0.904% | 1.092% | $4,520 | $7,232 |
| 84.01 – 85% | 0.990% | 1.198% | $4,950 | $7,920 |
| 85.01 – 86% | 1.295% | 1.566% | $6,475 | $10,360 |
| 86.01 – 87% | 1.541% | 1.860% | $7,705 | $12,328 |
| 87.01 – 88% | 1.706% | 2.054% | $8,530 | $13,648 |
| 88.01 – 89% | 1.831% | 2.207% | $9,155 | $14,648 |
| 89.01 – 90% | 1.926% | 2.318% | $9,630 | $15,408 |
| 90.01 – 91% | 2.681% | 3.232% | $13,405 | $21,448 |
| 91.01 – 92% | 3.067% | 3.692% | $15,335 | $24,536 |
| 92.01 – 93% | 3.467% | 4.176% | $17,335 | $27,736 |
| 93.01 – 94% | 3.732% | 4.500% | $18,660 | $29,856 |
| 94.01 – 95% | 3.871% | 4.658% | $19,355 | $30,968 |
| 95.01%+ | 4.604% | 5.534% | $23,020 | $36,832 |
Premium scales non-linearly above 90% LVR — the jump from 89-90% to 90-91% bracket roughly DOUBLES the premium. If you are within $5-15k of the next bracket down, find the deposit; the LMI saving can exceed $10,000.
Avoiding LMI
Four legitimate ways to skip the premium
- 20% deposit (80% LVR): the cleanest route. Saves ~$10-30k on a typical metro purchase.
- First Home Guarantee: 50,000 places/year (FY26), 5% deposit, government guarantees 15% — no LMI. Price caps apply by state. Details.
- Guarantor loan: parent or family member uses equity in their property to top up your deposit to 20%. Removable once you reach 80% LVR.
- Professional LMI waiver: Big 4 (CA / CPA), medical specialists, lawyers (some lenders) can borrow up to 90-95% LVR without LMI. Income thresholds apply.
LMI vs FHG decision
Should you save longer or use a scheme?
If you qualify for First Home Guarantee, the answer is almost always: use it. Saving 15% extra deposit takes 2-4 years on typical incomes, during which property prices usually rise faster than savings. The $10-30k LMI saving is real but often dwarfed by the holding cost of waiting.
If you do not qualify for a scheme (income above cap, second home, etc), weigh the LMI premium against likely property growth over the saving period. On a typical $700k Melbourne purchase, 4% growth pays back LMI inside 12 months.
A broker can model this trade-off across lender LMI grids and current Guarantee place availability before you commit.
Common questions
LMI calculator — common questions
What is Lenders Mortgage Insurance and who does it actually protect?
LMI is a one-off insurance premium paid by the borrower that protects the LENDER (not you) against loss if you default and the property sells for less than the loan balance. The premium is calculated based on Loan-to-Value Ratio (LVR), loan amount, and borrower profile. Most lenders allow LMI to be capitalised (added to the loan) so you do not need to pay it upfront, but it still costs you in interest over the life of the loan.
When is LMI required?
When your deposit is less than 20% of the property value (LVR above 80%). Some professional borrowers (doctors, lawyers, accountants — typically Big 4 + medical professionals on lender LMI-waiver lists) can borrow up to 90-95% LVR without LMI. First Home Guarantee participants (5% deposit), Regional FHB Guarantee, and Family Home Guarantee (single parent, 2% deposit) avoid LMI entirely — the government acts as guarantor.
How is LMI calculated?
As a percentage of the loan amount, with the percentage rising steeply as LVR rises. Indicative ranges (Helia / QBE published schedules): 80.01-85% LVR ~ 0.5-1.0% of loan, 85.01-90% LVR ~ 1.2-2.0%, 90.01-95% LVR ~ 2.5-4.0%, 95.01%+ LVR ~ 4.0-5.5%. Investment loans are ~20% more expensive. Premium scales non-linearly with loan size — a $700k loan at 90% LVR costs proportionally more than a $300k loan at the same LVR.
Can I avoid LMI without paying down to 80% LVR?
Three legitimate ways: (1) Guarantor loan — a family member uses equity in their property as additional security, no LMI on amounts up to 80% LVR of combined values; (2) First Home Guarantee / Regional FHBG / Family Home Guarantee — government acts as guarantor, eligibility caps apply; (3) Professional LMI waiver — Big 4 + medical + select other professions, lender-specific. A broker can advise which applies to you.
Is LMI tax deductible?
For investment property loans, yes — LMI is deductible over five years (or the term of the loan, whichever is shorter) as a borrowing expense under ATO rules. For owner-occupier loans, LMI is not deductible because the property is not income-producing. Confirm with your tax agent before relying on this — see TPB.gov.au for tax agent register.
Is LMI refundable if I pay off my loan early?
Partially — most LMI providers refund a portion of the premium if the loan is repaid in full within the first 1-2 years. Refund tapers to nil after year 2. Always ask for the LMI refund schedule before signing. Some lenders quietly retain the full premium even on early payout — challenge this in writing.
Can I shop around for LMI?
Not really — the lender chooses the LMI provider (most use Helia or QBE; some lenders self-insure with bespoke rates). What you CAN shop around for: lenders with lower LMI schedules for your specific borrower profile. A broker compares multiple lenders simultaneously and identifies which one produces the lowest combined loan + LMI cost. Differences of $5-15k on the same purchase are common between lenders.
Does the First Home Guarantee scheme cost anything?
No — the scheme itself is free for eligible participants. Government acts as guarantor on up to 15% of the property value, allowing you to enter with 5% deposit and no LMI. You still pay regular loan interest. The 50,000 places per year fill quickly each financial year (1 July reset). Property price caps apply by state and metro/regional location — see /first-home-buyer-schemes/.
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