LMI Calculator: how it works
Checked 15 Oct 2026. LMI premiums are an estimate from one lender's published table; duty on LMI checked against each state revenue office; scheme price caps from Housing Australia.
Lenders mortgage insurance (LMI) protects the lender, not you, if you borrow more than 80% of the property's value (an LVR over 80%). It's a one-off premium, paid at settlement or added to the loan, and it rises steeply with the LVR and the loan size.
Premiums are set by each lender and insurer (Helia and QBE), and no government body publishes them. This calculator uses the full-doc premium table of one lender, published by Home Loan Experts (updated May 2026), so treat the result as an estimate: your lender's quote can differ by thousands.
Most states charge duty on the premium: Victoria, WA, Tasmania and the NT 10%, Queensland 9% and South Australia 11%. NSW exempts LMI premiums paid from 1 July 2017, and the ACT has abolished insurance duty.
The Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme) lets first home buyers borrow with a 5% deposit and no LMI, with no income caps since 1 October 2025, under price caps such as $1.5 million in Sydney and regional NSW centres, $950,000 in Melbourne and Geelong, $1 million in Brisbane, the Gold Coast, the Sunshine Coast and the ACT, $900,000 in Adelaide, $850,000 in Perth, $750,000 in Darwin and $700,000 in Hobart.
General information only, not financial, tax or credit advice. Check your situation with the ATO, your state revenue office or a licensed adviser.
LMI Calculator FAQs
How much is LMI on a $600,000 home?
About $11,772 with a 10% deposit in NSW, which charges no duty on LMI. With a 5% deposit it's about $22,789, and with 15% about $5,942. In Victoria, 10% duty brings those to $12,949, $25,067 and $6,536. These are estimates from one lender's published table; your quote can differ.
Which states charge stamp duty on LMI?
Victoria, WA, Tasmania and the NT charge 10% of the premium, Queensland 9% and South Australia 11%. NSW has exempted LMI premiums paid from 1 July 2017, and the ACT has abolished duty on insurance.
Can I avoid LMI with less than a 20% deposit?
Yes, if you qualify for the Australian Government 5% Deposit Scheme: first home buyers with at least a 5% deposit (2% for single parents), buying under the price cap for the area, with no income test since 1 October 2025. A family guarantee, or some lenders' waivers for professions like doctors and nurses, can also avoid it.
Should I add LMI to my loan?
It saves cash upfront, but you pay interest on it for the life of the loan, and it raises your LVR, which some lenders cap. Paying it upfront costs less overall if you can afford it.
Why is LMI so much higher at 95% than 90%?
The insurer's risk jumps with a thin deposit. On a $600,000 home, LMI goes from about $11,772 at 90% LVR to about $22,789 at 95% (NSW, no duty), because the rate almost doubles and applies to a bigger loan.