Lenders Mortgage Insurance Calculator

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.

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.

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.

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.