Estimate the one-off LMI premium on a loan above 80% LVR — and weigh paying it to buy sooner against the cost of reaching an 80% deposit.
What this estimates
Lenders Mortgage Insurance (LMI) is a one-off premium charged when you borrow more than about 80 per cent of a property's value. It protects the lender — not you — if the loan later falls into arrears. The calculator above takes your property price and deposit, works out the loan amount and loan-to-value ratio (LVR), and returns an indicative premium. Sit at or below 80% LVR and, for most lenders, there is no LMI at all.
What drives the number
Two things move the premium: how far above 80% your LVR sits, and how large the loan is. Both push the cost up, and not in a straight line — the jump from 90% to 95% LVR is far steeper than from 81% to 85%. There is no single national table. Each insurer prices from its own schedule and each lender applies it differently, so the same deposit can produce a materially different premium depending on who you approach. That is the point worth holding onto: LMI is a policy outcome, not a fixed fact. Many lenders also let you capitalise the premium onto the loan rather than pay it up front.
Use it as a starting point
Treat this as a way to frame the real question — is it worth paying LMI to buy now, or worth the time and cost of getting to a 20% deposit? Sometimes a guarantor, a different lender, or a slightly larger contribution changes the maths entirely. Book a strategy session and we will run your actual numbers against the lenders whose policy fits.
General information only — not personal financial product or credit advice. The estimate is indicative and depends on each insurer's and lender's policy, current rates and your full circumstances. AeFin is an Australian Credit Representative (CR 464548) of Finsure (ACL 384704).