LMI Estimator
Estimate Lenders Mortgage Insurance based on your loan-to-value ratio.
How to Avoid LMI
- Save a 20% deposit (LVR of 80% or less)
- Use a guarantor loan with a family member
- Ask about LMI waivers for select professionals (doctors, lawyers, accountants)
Disclaimer: LMI premiums vary by insurer, lender, and state. This is an approximate guide only.
Understanding Lenders Mortgage Insurance
Lenders Mortgage Insurance (LMI) is a one-off premium that protects the lender — not you — if you default on your home loan. It is typically required when your deposit is less than 20% of the property value (i.e., your Loan-to-Value Ratio is above 80%).
LMI can cost thousands of dollars and is usually added to your loan balance. The premium is calculated based on the loan amount, LVR, and property location. Higher LVRs attract higher premiums — borrowing at 95% LVR costs significantly more than at 85%.
Tip: Some lenders offer LMI waivers for select professionals such as doctors, lawyers, and accountants, allowing them to borrow up to 90% without LMI. Ask your Reficity broker about your eligibility.