
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.
This Lenders' Mortgage Insurance guide is brought to you by QBE and Finder.
For more housing market insights, check out QBE's 2022-2025 Housing Outlook: Green Edition.
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
A closer look at some of the common questions about LMI and the purposes it serves.
Useful advice and information on the process of preparing to buy your first home.
Find out what your credit score is through Finder before you you start applying for home loans.
Compare lending options with QBE's partners
Lenders
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.
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