LMI · indicative
Will we pay LMI?
Lenders Mortgage Insurance is the premium that lets you borrow above 80% LVR. The number isn't fixed — it varies by LVR, employment type and lender. Here's the ballpark.
Banded estimate as a starting point, plus the actual range our panel quotes for your LVR and file.
Use
State
First home buyer?
LMI waivers
Indicative LMI premium
$11,680
LVR 90.0% · loan $805,500
Indicative LMI ≈ 1.45% of the loan at this LVR. Usually capitalised into the loan, which lifts your effective LVR — and can mean a higher interest rate. Generally non-refundable.
Across our panel
UpdatingAt 80% LVR or below, most lenders won’t charge LMI. Up to 95% LVR some waive it entirely via professional packages — medical files are strongest. Some lenders self-insure rather than using QBE or Helia, which can land cheaper.
Indicative only. Premiums are estimates derived from published QBE and Helia LMI schedules and assume an owner-occupier, P&I, single-applicant file with a clean credit history. Final premium is set by the lender at credit decision and depends on policy, loan amount, LVR, security type, and insurer. This calculator does not consider your personal circumstances and is not personal credit advice.
There are four ways around LMI
A bigger deposit, a guarantor, the Home Guarantee, or a professional waiver.
Doctors, lawyers, accountants and a handful of other professions qualify for waivers at certain lenders — and since October 2025 the Home Guarantee has no income caps and unlimited places. Either route can save 20–80K in premium. Worth a 15-minute call before you commit.
Worked examples
How the premium scales with LVR.
Three sample purchases on a $600,000 property in Queensland, owner-occupied, P&I, single applicant with a clean credit file. The same property, three different deposits. The premium is not linear — every step above 80% LVR is sharper than the one before.
Example 1 · 85% LVR
$510,000
Loan amount · 15% deposit
Indicative premium$3,825
Premium as % of loan~0.75%
Paid upfront$3,825
If capitalised (30 yrs, 6%)~$8,250
The cheapest band above 80%. If you are sitting on 17–18% deposit, sometimes a quarter of disciplined saving gets you below 80% LVR — and saves the premium entirely.
Example 2 · 90% LVR
$540,000
Loan amount · 10% deposit
Indicative premium$7,830
Premium as % of loan~1.45%
Paid upfront$7,830
If capitalised (30 yrs, 6%)~$16,900
The most common band. The premium roughly doubles from 85% — and capitalising it over thirty years more than doubles again. Worth the cash if you can find it at settlement.
Example 3 · 95% LVR
$570,000
Loan amount · 5% deposit
Indicative premium$16,530
Premium as % of loan~2.90%
Paid upfront$16,530
If capitalised (30 yrs, 6%)~$35,700
Steep. At 95% LVR the premium can run close to 3% of the loan, and a higher LVR often carries a higher interest rate too. For most first-home buyers, the First Home Guarantee — which acts as a government guarantor — is the cheaper route to the same outcome.
Figures are illustrative, drawn from published QBE and Helia premium schedules current in 2026. Every lender prices slightly differently — same LVR, same loan amount, two different banks can be $1,000 to $2,000 apart on the premium. Run your own file through the calculator above for a closer number, then ask us to confirm the sharpest insurer pairing for your scenario.
Why this number is an estimate
The same LVR, two different premiums — every time.
In Australia, most LMI policies are underwritten by one of two insurers — QBE LMI or Helia (formerly Genworth). Each lender has a commercial arrangement with one or both, and the premium you pay is set by that insurer’s published schedule for the lender’s book. Two banks using the same insurer can still surface different premiums on the same scenario because of wholesale bulk-discount arrangements. Some lenders also self-insure rather than using QBE or Helia, which can sometimes work out cheaper than an external insurer’s premium.
The published calculator above uses a representative blend of both insurers. Final pricing is set at credit decision and can move on details you may not consider material — the same file, P&I versus interest-only, owner-occupier versus investment, single versus joint applicant, 25-year versus 30-year term, can each push the premium up or down by 5 to 15 per cent.
What also moves the premium
- Employment type. PAYG files typically attract the published premium. Self-employed and contract files can be loaded by 5–15% at some insurers, or declined entirely at higher LVRs.
- Loan structure. Interest-only is often surcharged. Investment loans often carry a higher schedule than owner-occupied at the same LVR.
- Whether you capitalise. Adding the premium to the loan pushes your effective LVR higher, which can tip you into the next band — and a higher interest rate.
- Risk fee versus LMI. A handful of lenders — particularly in the non-bank space — charge a Risk Fee instead of LMI. The mechanics and cost are similar, but the fee is set by the lender rather than an insurer. It is not always cheaper. Read the loan offer carefully.
Four ways to avoid LMI
One of these usually applies.
These are the four routes that actually work for most buyers. The right one for you depends on timing, family circumstances, occupation — and whether it’s your first home.
Option 1
Get to a 20% deposit
The cleanest path. Twenty per cent of the property value plus your purchase costs — stamp duty, legals, building and pest — keeps your LVR below 80% and removes the premium entirely. If you are within 2–3% of the threshold, sometimes a single quarter of disciplined saving or a small parental gift is cheaper than paying $12,000 in premium. We model this trade-off on every file.
Option 2
Family guarantor
A parent or immediate family member puts up equity in their property as security for the top portion of your loan. The lender treats the combined security as below 80% LVR and the premium becomes zero. The guarantor does not transfer money or co-own the property — they are on the hook only for the guaranteed amount, and the guarantee can be released once your LVR drops below 80% organically through repayments or growth.
Option 3
Professional waiver
Specific occupations — medical (strongest), dental, legal, accounting, actuarial, certain engineering disciplines — can borrow up to 90% (sometimes 95%) LVR with no LMI at all. Several major banks and second-tier lenders run versions, with different eligibility lists and income thresholds (policies change — some lenders add or withdraw them over time). The full LMI guide lists the qualifying professions and the lenders that recognise each.
Option 4
Home Guarantee Scheme
Buy with a 5% deposit and the government guarantees the top slice of the loan, so no LMI up to 95% LVR. Since 1 October 2025 there are no income caps and no limit on places. Property price caps apply — $1,000,000 in Brisbane, the Gold Coast and Sunshine Coast, $1,500,000 in Sydney — and are lower outside the capitals and major regional centres. Single parents and legal guardians can start from a 2% deposit under the same scheme.
Common questions
The honest answers.
Deeper read
The full LMI guide.
Indicative premium tables across $400K to $900K loan sizes, the First Home Guarantee math, and the complete list of professions and lenders that offer LMI waivers.