Understanding Lenders’ Mortgage Insurance with QBE

Lenders' Mortgage Insurance (LMI) can be the difference between buying a house today or waiting years as you save a bigger deposit.

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Discover more about your choices as a first home buyer

Learn how you can get a foot on the property ladder with LMI and take a step towards your dream home.

Lenders' Mortgage Insurance (LMI) can come as a surprise cost for Australian home buyers with low deposits. But it also lets you enter the property market without saving a 20% deposit, making LMI a lifesaver for many first time buyers.


How can LMI help you purchase a home?

  • Allows you to borrow with a deposit of less than 20%

  • Lets you get a foot on the property ladder more quickly.

  • Enables you to spend less time saving and more time paying off your property.


How LMI works

Most lenders want a borrower to save a 20% deposit. If you're buying a home that costs $800,000, that means you'd need a deposit of $160,000.

But some lenders will happily accept a borrower with a 10% deposit. If that's the case, you could buy an $800,000 home with just $80,000. That's half the size of the 20% deposit and a much more realistic amount for many first home buyers.

In order to get a loan with a much lower deposit, your lender will charge you an LMI premium. While LMI is an additional cost when buying a property, it lets buyers enter the property market faster. That can be a great benefit for some buyers.


Learn more about LMI and home loans


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Use the LMI calculator

The LMI calculator below will give you an idea of how much cost LMI can add to your loan.
Input the amount you plan to borrow, along with the price of the property you're looking at purchasing. An estimation will work too, if you don't yet have the exact amounts.

Property value
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Borrowing amount
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Helpful tips and articles for first home buyers

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