Free investor tool
LMI calculator
Estimate the lenders mortgage insurance on a loan above 80% of the property's value, including any state duty on the premium, and see how a bigger deposit changes it.
Updated · Free, no sign-up
| Loan-to-value | Deposit | Loan | Estimated LMI incl. duty |
|---|---|---|---|
| 95% | $37,500 | $712,500 | $32,868 |
| 92% | $60,000 | $690,000 | $26,682 |
| 90% | $75,000 | $675,000 | $15,977 |
| 88% | $90,000 | $660,000 | $10,765 |
| 85% | $112,500 | $637,500 | $8,498 |
| 82% | $135,000 | $615,000 | $5,560 |
| 80% | $150,000 | $600,000 | $0 |
How it works
What LMI is and when it applies
Lenders mortgage insurance protects the lender, not you, if a borrower defaults. Lenders usually charge it when you borrow more than 80% of the property's value. It is a one-off premium, often added to the loan, and it rises steeply as the loan-to-value ratio climbs past 88% and 90%.
Premiums differ between lenders and insurers, so treat this as an estimate from one published rate card. For an investment property, LMI is generally deductible over five years or the loan term if shorter. Using equity from another property for the deposit is a common way to stay at 80% and avoid it.
The numbers are one part of the decision
We look at the figures alongside growth drivers, vacancy, supply and how a property fits your borrowing and portfolio plans, then choose the market that suits your strategy, wherever it is in Australia. See how we buy investment property.
FAQ
Common questions
How much is LMI?
It depends on the loan size and LVR. On the rate card used here, a $675,000 loan at 90% LVR attracts about 2.37% of the loan, roughly $16,000 before any state duty. Other lenders can charge noticeably more or less.
How can I avoid LMI?
Borrow 80% or less of the value, use equity in another property, use a guarantor, or check whether your profession qualifies for an LMI waiver with some lenders.
Is LMI tax deductible on an investment property?
Generally yes, as a borrowing cost spread over five years or the loan term if shorter. Confirm with your accountant.
Is this financial advice?
No. It is a general estimate to help you compare options. It does not consider your personal circumstances, and results depend on the figures you enter. Check them with your accountant, mortgage broker or financial adviser before you act.
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