Buying a home can be expensive enough, and it can be even more expensive if you have to pay Lenders Mortgage Insurance (LMI). LMI is the insurance policy covering the lender against losses they may incur if the borrower defaults on the loan.
Lenders Mortgage Insurance is often charged on borrowers with a deposit of less than 20% of the property’s value, and can differ greatly in cost.
Using our LMI calculator, you can estimate how much you might have to pay.
How much is Lenders Mortgage Insurance
The upfront cost of LMI typically varies significantly, based on a number of factors, such as:
- Whether you’re a first-time borrower or not
- The state your property is in
- Whether you’re an investor or owner-occupier
- The size of the loan
- Your loan-to-value ratio (LVR)
- What your job is
LMI can easily cost thousands (sometimes tens of thousands) of dollars and can be paid either as a lump sum or as a part of your ongoing repayments. For example, borrowing $500,000 fora $550,000 property (90% LVR) could see you charged between $12,000 and $17,500 in LMI.
How to calculate LMI
If you do think you’re going to have to pay LMI, or just want to know how much you might have to pay just in case, you can easily use a Lenders Mortgage Insurance calculator to give you an estimate of what your costs might be.
Lenders Mortgage Insurance calculator
Savings.com.au’s Lenders Mortgage Insurance can allow you to do just that. By entering all the fields mentioned above, like your deposit size, the cost of the property, the state you’re buying in, and so forth, you can work out just how much you’re likely to have to pay in LMI, and you can work out from there if you want to proceed with your purchase.
Looking for a home loan?
Buying a home or looking to refinance? The table below features home loans
with some of the lowest interest rates on the market for owner occupiers.
Lender | |||||||||||||
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| Variable | More details | ||||||||||||
| FEATUREDGREAT INTEREST RATE | Smart Booster Investor Bundle (Principal and Interest)
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Smart Booster Investor Bundle (Principal and Interest)
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| Variable | More details | ||||||||||||
| FEATUREDNO UPFRONT OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 80%)
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Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 80%)
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| Variable | More details | ||||||||||||
| FEATUREDGET APPROVED FASTER WITH A DIGITAL APPLICATION | Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)
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Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)
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| Variable | More details | ||||||||||||
| BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS | Yard Investor Bundle Loan (Bundled with Home Loan)
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Yard Investor Bundle Loan (Bundled with Home Loan)
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| Variable | More details | ||||||||||||
| REFINANCE ONLY | Variable Rate Investment Loan – Refinance Only
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Variable Rate Investment Loan – Refinance Only
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| Variable | More details | ||||||||||||
| FREE REDRAW FACILITY | Basic Investment Loan (Principal and Interest) (LVR < 60%)
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Basic Investment Loan (Principal and Interest) (LVR < 60%)
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| Variable | More details | ||||||||||||
| 100% FULL OFFSET ACCOUNT | Ocean Investment (Amounts < $1m, LVR < 60%)
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Ocean Investment (Amounts < $1m, LVR < 60%)
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| Variable | More details | ||||||||||||
| FAST TURNAROUND TIMES AND FLEXIBLE LOAN OPTIONS | |||||||||||||
Basic Investment Loan (Principal and Interest) (LVR 60%-70%) | |||||||||||||
| Variable | More details | ||||||||||||
Budget Investment Loan (Principal and Interest) (LVR ≤ 80%) | |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDGET A FULL OFFSET ACCOUNT FOR NO EXTRA COST | Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 60%)
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Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 60%)
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| Variable | More details | ||||||||||||
Ocean Investment (Amounts < $1m, LVR < 70%)
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Ocean Investment (Amounts < $1m, LVR < 70%)
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| Variable | More details | ||||||||||||
| UNLIMITED EXTRA REPAYMENTS | |||||||||||||
Budget Investment Loan (Principal and Interest) (LVR 80%-90%) | |||||||||||||
| Variable | More details | ||||||||||||
Yard Investment Loan (Principal and Interest) (LVR > 80%) | |||||||||||||
| Variable | More details | ||||||||||||
Basic Investment Loan (Principal and Interest) (LVR 70%-80%) | |||||||||||||
| Variable | More details | ||||||||||||
Ocean SMSF (No Offset) (Metro) (Principal and Interest) (LVR < 60%) | |||||||||||||
| Variable | More details | ||||||||||||
Base Variable Investment Loan Special Offer (Principal and Interest) (LVR > 80%) | |||||||||||||
| Variable | More details | ||||||||||||
Standard Variable Investment Loan (Principal and Interest) (LVR > 80%) | |||||||||||||
| Variable | More details | ||||||||||||
Ocean SMSF (With Offset) (Metro) (Principal and Interest) (LVR 60%-65%) | |||||||||||||
| Variable | More details | ||||||||||||
Base Variable Investment Loan (Principal and Interest) | |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDSELF MANAGED SUPER FUND LOAN | SMSF 80
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SMSF 80
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- Option to add an offset for 0.10%
- No monthly or ongoing fees
- Unlimited redraws
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 29, 2022. View disclaimer.
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