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LMI calculator

Use Finder's free LMI calculator to estimate your lenders mortgage insurance premiums.

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Lenders mortgage insurance (LMI) is a premium lenders charge buyers who take up low deposit home loans. LMI can add thousands or tens of thousands of dollars to your home-buying costs.

LMI calculator

Enter your borrowing amount and the price of the property you're purchasing below. Enter estimates if you don't have exact figures. This will give you a lenders mortgage insurance estimate. Note that this figure does not include stamp duty, which varies depending on the property's location (more info below).

Property value
$
Borrowing amount
$

How to use the calculator

LMIHere's a simple example showing you how to use the lenders mortgage insurance calculator.

Let's say you're looking to buy a home and you have a price range of around $650,000.

(If you've already found a home to buy, you can use the exact figure).

You have a 10% deposit saved, which is $65,000.

That means your borrowing amount is $585,000.

In the calculator above, enter $650,000 and $585,000.

The calculator spits out an estimate: in this case, it's $12,753.

LMI graphic

Keep in mind it's not an actual quote, and doesn't include stamp duty.

But what if you increased your deposit to 15%?

If you were able to save an extra $32,500 and offer a deposit of $97,500, you'd save thousands in LMI.

In the calculator, enter $650,000 and $552,500 (your new adjusted loan amount).

Your LMI premium is now $6,437 – around half what you were paying with a 10% deposit.

How this LMI calculator works

We benchmarked our calculator against multiple LMI estimates and created a tool that takes into account your property value and your loan to value ratio (LVR). This results in a premium estimate that takes into account:

  • the cost of the property
  • your deposit size, relative to the overall property cost
  • the total loan amount.

With LMI, you pay a higher premium as your property value increases. This means the premium on a $1m property with a 10% deposit will be higher than the premium on a $500,000 property with a 10% deposit.

You also pay a high premium for a smaller deposit.

And remember: if you have a 20% deposit or higher you won't pay LMI at all.

Learn all about LMI with our complete guide

How to avoid LMI premiums

You can avoid LMI by getting a guarantor home loan. There's also the First Home Loan Deposit Scheme. This federal government scheme allows eligible first home buyers to buy a home with just a 5% deposit while avoiding LMI.

If the estimates above are a shock to the wallet, don't despair. Many lenders allow you to capitalise your LMI premium, which means you add it to your overall loan, and you don't have to come up with the money on top of your deposit.

In the above example, your $585,000 loan could have the LMI premium of $12,753 added to it, so you'll have a total loan of $597,753.

This increases your monthly repayments slightly and costs you more in interest over time. But it can help you get into the property market sooner, which could save you more money in the long run.

Does LMI change depending on your location?

Yes, the amount of LMI does change depending on the state or territory you're in. But this isn't because of the premium itself – it's because of the stamp duty charged on top of the premium.

The amount you'll pay in stamp duty is calculated as a percentage of the LMI premium. It changes based on on the state or territory where you're buying your property.

The calculator above doesn't include stamp duty, so you'll have to add an estimate for duty on top.

LMI stamp duty

Stamp duty is charged on your LMI premiums as follows:

  • ACT: no stamp duty on the LMI premium
  • NSW: 9% of the LMI premium
  • NT: 10% of the LMI premium
  • QLD: 9% of the LMI premium
  • SA: 11% of the LMI premium
  • TAS: 10% of the LMI premium
  • VIC: 10% of the LMI premium
  • WA: 10% of the LMI premium

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