What is Lender's Mortgage Insurance (LMI)?

LMI is insurance that protects the lender (not you) if you default on your loan. It is typically required when your deposit is less than 20% of the property value — i.e. your LVR (Loan to Value Ratio) is above 80%. LMI is a one-time cost, usually capitalised into the loan.

How much does LMI cost in Australia?

LMI costs depend on your loan size and LVR. For a $650,000 loan at 90% LVR, LMI is typically $7,000–$12,000. At 95% LVR, it can be $15,000–$20,000. The cost is paid once at settlement and is usually added to your loan balance.

Can I avoid paying LMI?

Yes — save a 20% deposit to bring your LVR to 80% or below. Alternatively, some lenders offer LMI waivers for certain professions (doctors, lawyers, accountants). First home buyers in some states may also qualify for government guarantee schemes that allow borrowing above 80% LVR without LMI.

Who provides LMI in Australia?

LMI in Australia is provided by two main insurers: Helia (formerly Genworth) and QBE. Your lender selects which insurer they use — you do not choose. The cost varies slightly between insurers.

LMI Calculator

Estimate Lender's Mortgage Insurance (LMI) for any Australian home loan. Compare costs at different deposits and LVR levels.