Calculators
LMI Calculator
Get an indicative lenders mortgage insurance cost based on your deposit and loan size.
Indicative LMI premium
$18,477
About 2.82% of the loan amount
- Loan amount
- $655,200
- Loan-to-value ratio (LVR)
- 91.0%
- Extra deposit to reach 20%
- $79,200
Indicative only. Actual LMI depends on the lender, the insurer, your profile and state stamp duty on the premium. Eligible first home buyers using the federal 5% Deposit Scheme, and some professionals, may avoid LMI altogether.
Understand the numbers
What Is LMI?
Lenders mortgage insurance (LMI) is a one-off insurance premium that protects the lender, not you, if you cannot repay your loan and the property sells for less than you owe. You usually pay it when you borrow more than 80% of the property's value. The cost depends on your loan size and loan to value ratio, and it is often added to the loan. You may avoid it with a 20% deposit, a government scheme, a family guarantee or a professional LMI waiver.
6 min readFirst Home BuyersHow Much Deposit Do I Need?
Most lenders prefer a 20% deposit, which lets you avoid lenders mortgage insurance (LMI), but many people buy with 5% to 10%. With a smaller deposit you will usually pay LMI unless you qualify for an exemption or a government scheme such as the federal 5% Deposit Scheme. On top of the deposit, budget for stamp duty (if it applies), legal fees, inspections and loan costs. The right deposit balances getting into the market sooner against borrowing more.
6 min readProperty InvestingUsing Equity as a Deposit
Yes, you can use the equity in your home as a deposit for an investment property, instead of saving cash. The lender releases part of your usable equity, usually up to 80% of your home's value, as a separate loan that covers the deposit and purchase costs such as stamp duty. A second loan, secured by the new property, covers the rest. You'll still need to show you can afford the combined repayments, and the way the loans are set up matters for flexibility and tax.
7 min readBook a discovery call
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