About this calculator
Lenders mortgage insurance exists because of a simple asymmetry: with less than 20% deposit, the lender carries more risk if you default and the sale falls short — so you pay a premium to insure them against it. The premium is a one-off, charged at settlement and almost always capitalised (added to the loan), and it climbs steeply and non-linearly: it is driven by both your LVR and the size of the loan, so a 95% loan on an expensive property is the most expensive cell in the table. On a $600,000 purchase with 10% down, the mid estimate is about $9,882; drop to 5% down and it roughly triples.
Why an estimate with a range, when other calculators give one exact number? Because the exact number does not exist in public. The two insurers, Helia and QBE, set premiums per lender under private contracts and publish estimators, not rate cards. The table behind this calculator is anchored to Helia’s own estimator output as published by Canstar in August 2026 — a $475,000 loan at 95% LVR priced at $14,031 (2.95%) — cross-checked against other published estimator tables, then banded by loan size and LVR. Across lenders, premiums at 95% LVR can run roughly 30% either side of the mid estimate, and the quote you receive from your lender’s insurer is the only final figure. Any site showing a single "exact" premium without naming its insurer source is guessing more quietly, not more accurately.
How to use it
- Enter the property price and your deposit — the LVR between them decides whether LMI applies at all.
- Tick first home buyer if relevant: eligible first-home buyers can often avoid LMI entirely under the federal First Home Guarantee.
- Set the rate and term to see the true cost of capitalising the premium — the premium itself plus the interest it accrues.
- Use the scenario table to price the decision: what an extra 5% of deposit saves in premium before you even count the smaller loan.
The formula
Premiums are priced from insurer tables that step by both LVR band and loan amount band, GST included. The rates shown are the Helia-anchored mid estimates described above; the range applies ±30% because the same loan genuinely prices differently at different lenders. Capitalised premium cost = the extra repayments on the premium amount over the term, less the premium itself, shown as "interest paid on the premium".
Worked example
A $600,000 home with a $60,000 deposit (10%): the loan is $540,000 at 90% LVR, squarely in the $300k–$600k band, where the table rate is 1.83% — a premium estimate of $9,882, realistically $6,917–$12,847 depending on insurer. Capitalised at 6.00% over 30 years it lifts the repayment from $3,238 to $3,297 a month and quietly accrues about $11,447 of interest on the premium itself. Saving to 15% down instead cuts the premium to about $5,304 at 85% LVR; at 20% it vanishes.
Sources: Premium points anchored to Helia’s LMI estimator output as published by Canstar (August 2026), cross-checked against other published estimator tables. Helia and QBE do not publish rate cards, so premiums are presented as a mid estimate with a range — the lender’s insurer sets the final figure. Last updated: October 2026.
Frequently asked questions
How much is LMI on a $500,000 property?
It depends on the deposit. At 10% down the loan is $450,000 at 90% LVR and the mid estimate is about $8,235 (Helia’s estimator says $8,219). At 5% down the loan is $475,000 at 95% LVR: about $14,013 (Helia: $14,031) as a mid estimate, with real quotes varying either side. At 15% down it falls to roughly $4,420.
Can I avoid LMI without a 20% deposit?
Often, yes. Eligible first-home buyers can use the federal First Home Guarantee and buy with 5% deposit and no LMI. Some lenders waive LMI for certain professions (medical, legal and accounting borrowers are the classic examples) up to 90–95% LVR. A guarantor loan using a parent’s property as additional security can also remove it. And a handful of lenders run their own risk-fee or in-house alternatives at 85–90% LVR — priced similarly, but worth comparing.
Is LMI refundable if I refinance or sell?
Sometimes, partially, and only early. Insurer policies typically allow a partial refund if the loan is repaid within the first one to two years, calculated on a sliding scale and at the insurer’s discretion — after that, nothing. The premium is not portable: refinance to a new lender with under 20% equity and you will generally pay a new premium in full, which is why early refinancing out of a high-LVR loan can be a false economy.
Does LMI protect me if I lose my job?
No — this is the most common misunderstanding in Australian mortgages. LMI protects the lender against a shortfall if the property is sold after default. You remain liable for any shortfall yourself; the insurer can even pursue you for what it paid the lender. It buys you access to the loan, nothing else.
Why do two calculators give me different LMI figures?
Because there is no single public price. Each insurer prices per lender contract, premiums step by loan band as well as LVR, and some published tables are years old (the ones based on the old Genworth era persist across the web). This calculator anchors to the most recent insurer-estimator data we could verify — Helia via Canstar, August 2026 — and shows a range deliberately. Treat any figure, including ours, as budgeting guidance until your lender quotes.
What formula does this lmi calculator — lenders mortgage insurance calculator use?
Premium ≈ loan × table rate(LVR, loan band). Table rates (mid): at 85% LVR, 0.81–1.31% of the loan by size; at 90%, 1.44–2.55%; at 95%, 2.35–4.36% — interpolated between LVR points, nil at 80%. Premiums are priced from insurer tables that step by both LVR band and loan amount band, GST included. The rates shown are the Helia-anchored mid estimates described above; the range applies ±30% because the same loan genuinely prices differently at different lenders. Capitalised premium cost = the extra repayments on the premium amount over the term, less the premium itself, shown as "interest paid on the premium". The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.