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

Variable
More details
GREAT INTEREST RATE
  • Option to add an offset for 0.10%
  • No monthly or ongoing fees
  • Unlimited redraws
GREAT INTEREST RATE

Smart Booster Investor Bundle (Principal and Interest)

  • Option to add an offset for 0.10%
  • No monthly or ongoing fees
  • Unlimited redraws
Variable
More details
NO UPFRONT OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Unlimited extra repayments
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 80%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Unlimited extra repayments
Variable
More details
GET APPROVED FASTER WITH A DIGITAL APPLICATION
  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
GET APPROVED FASTER WITH A DIGITAL APPLICATION

Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)

  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
Variable
More details
BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS
  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS

Yard Investor Bundle Loan (Bundled with Home Loan)

  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
Variable
More details
REFINANCE ONLY
  • A low-rate variable investment home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Investment Loan – Refinance Only

  • A low-rate variable investment home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
FREE REDRAW FACILITY
  • Pay more to reduce the amount of interest you pay
  • Easily access additional funds in your redraw
  • Great rates and low fees
FREE REDRAW FACILITY

Basic Investment Loan (Principal and Interest) (LVR < 60%)

  • Pay more to reduce the amount of interest you pay
  • Easily access additional funds in your redraw
  • Great rates and low fees
Variable
More details
100% FULL OFFSET ACCOUNT
  • Free redraw facility
  • Split account option
  • Unlimited extra repayments
100% FULL OFFSET ACCOUNT

Ocean Investment (Amounts < $1m, LVR < 60%)

  • Free redraw facility
  • Split account option
  • Unlimited extra repayments
Variable
More details
FAST TURNAROUND TIMES AND FLEXIBLE LOAN OPTIONS
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
      GET A FULL OFFSET ACCOUNT FOR NO EXTRA COST
      • No upfront or ongoing fees
      • 100% full offset account
      • Extra repayments + redraw services
      GET A FULL OFFSET ACCOUNT FOR NO EXTRA COST

      Low Rate Home Loan - Prime (Principal and Interest) (Investment) (LVR < 60%)

      • No upfront or ongoing fees
      • 100% full offset account
      • Extra repayments + redraw services
      Variable
      More details
      • No upfront or ongoing fees
      • 100% full offset account
      • Extra repayments + redraw services

      Ocean Investment (Amounts < $1m, LVR < 70%)

      • No upfront or ongoing fees
      • 100% full offset account
      • Extra repayments + redraw services
      Variable
      More details
      UNLIMITED EXTRA REPAYMENTS
      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
                      SELF MANAGED SUPER FUND LOAN
                      • Easy refinance process
                      • No application fee and no settlement fee
                      • No monthly, annual or ongoing fees
                      SELF MANAGED SUPER FUND LOAN

                      SMSF 80

                      • Easy refinance process
                      • No application fee and no settlement fee
                      • No monthly, annual or ongoing fees

                      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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