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Local Knowledge Finance

Lenders Mortgage Insurance (LMI) Calculator

Estimate LMI costs when your deposit is below 20%. Indicative only — actual premiums depend on insurer, loan purpose, and lender.

Loan-to-Value Ratio (LVR)
90.0%
LMI applies above 80%
Estimated LMI
$17,280
One-off premium
Total upfront (deposit + LMI)
$97,280

$17,280 in LMI — there may be ways to reduce or avoid it.

Some lenders waive LMI for certain professions. A guarantor loan or the First Home Guarantee can also eliminate it. Let's explore your options.

Note: LMI premiums vary significantly between insurers and lenders. Some lenders offer LMI waivers for professionals (doctors, lawyers, accountants, engineers). Government schemes like the First Home Guarantee allow eligible buyers to purchase with as little as 5% deposit without paying LMI.

Frequently Asked Questions

LMI is a one-off insurance 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 exceeds 80%). The cost is usually added to your loan or paid upfront at settlement.
LMI premiums depend on the loan amount, LVR, loan purpose (owner-occupied vs investment), and the insurer. Costs generally range from 1% to 4% of the loan amount. For example, on a $600,000 loan at 90% LVR, LMI might cost around $12,000–$15,000. Exact quotes come from the lender at application.
Yes. Common strategies include saving a 20% deposit, using a family guarantee (parents use their property as additional security), accessing the First Home Guarantee (5% deposit, no LMI for eligible buyers), or choosing a lender that offers LMI waivers for certain professionals like doctors, lawyers, and accountants.
No. LMI protects the lender if you cannot repay the loan. It is separate from home and contents insurance (which covers your property), income protection (which replaces your income if you cannot work), or life insurance. You should consider these other insurances separately.

Important Disclaimer

This calculator provides general estimates only. The results are indicative and should not be relied upon as financial advice, a quote, or a guarantee of loan approval or terms.

Your actual borrowing capacity, repayments, stamp duty, and other costs may differ based on:

  • Individual lender assessment criteria and policies
  • Your complete financial circumstances, credit history, and employment status
  • Current interest rates, government policies, and market conditions
  • Property type, location, and intended use (owner-occupied vs. investment)
  • Additional fees, charges, and conditions not captured in this calculator

General Advice Warning

Any information provided by this calculator is general in nature and does not take into account your personal objectives, financial situation, or needs.

Before making any financial decisions, you should:

  • Consider whether the information is appropriate for your circumstances
  • Read the relevant Product Disclosure Statement (PDS) or loan documents
  • Seek professional financial advice tailored to your situation
  • Compare multiple lenders and loan products

Regulatory Compliance: Local Knowledge Finance is committed to compliance with all applicable Australian Securities and Investments Commission (ASIC) regulations and the National Consumer Credit Protection Act 2009.

Not Financial Advice: This calculator and its outputs do not constitute financial advice, credit assistance, or a recommendation to enter into any particular loan or financial product.

Accuracy: While we strive to ensure the accuracy of this calculator, Local Knowledge Finance makes no representations or warranties about the completeness, accuracy, or reliability of the information provided.

Liability: To the maximum extent permitted by law, Local Knowledge Finance disclaims all liability for any loss or damage arising from your use of this calculator or reliance on its results.

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Ding Financial Pty Ltd (trading as Local Knowledge Finance) ACN 110 490 947 is an authorised Credit Representative Number 517980 of Global Mutual Funds Pty Ltd ACN 090 555 436 AFSL/Australian Credit Licence 222640.