Estimate Lenders Mortgage Insurance (LMI) costs if you're buying a property with less than a 20% deposit.
What is LMI?
Lenders Mortgage Insurance is a one-off insurance premium that protects the lender (not you) if you default on your home loan. It's typically required when you borrow more than 80% of the property value — in other words, when your deposit is less than 20%.
LMI can add thousands or even tens of thousands of dollars to your upfront costs, so it's important to factor it in when planning a property purchase.
Using the estimator
- Go to Calculators in the sidebar and select LMI Estimator.
- Enter the property value.
- Enter your deposit amount or loan amount.
- The estimator calculates your loan-to-value ratio (LVR) and the estimated LMI premium.
How LMI is calculated
LMI premiums depend on:
- Loan-to-value ratio (LVR) — higher LVR (smaller deposit) = higher premium
- Loan amount — larger loans attract higher premiums
- Lender and insurer — different insurers have different premium schedules
JettWorth uses representative LMI premium tables to give you a ballpark estimate. Actual LMI costs may vary depending on your lender and insurer.
Ways to avoid or reduce LMI
- Save a 20% deposit — no LMI required at 80% LVR or below
- Use a guarantor — a family member can guarantee part of your loan, reducing the effective LVR
- Check first home buyer schemes — some state and federal schemes help first home buyers avoid LMI (e.g. the First Home Guarantee)
- Capitalise vs pay upfront — most lenders let you add LMI to your loan principal rather than paying it on settlement, which preserves cash but increases interest paid
Note: LMI estimates are approximate and based on representative premium tables. Your actual cost depends on your lender, insurer, and individual circumstances. This is not financial advice.