Lenders mortgage insurance calculator
What lenders mortgage insurance costs at your deposit, including the state duty on the premium and how much more deposit would remove it entirely.
Covers 2026-27 · rates as at 2026-07-01
Estimated LMI, including duty
Estimate$9,509.00
90.0% loan-to-value on a 702,000 loan
- Premium
- $9,056.00
- Stamp duty on the premium
- $453.00
- Extra deposit to avoid it
- $78,000
| Property value | $780,000 |
|---|---|
| Deposit | -$78,000 |
| Loan | $702,000 |
| Loan-to-value | 90% |
| Premium | $9,056.00 |
| State duty on the premium | $453.00 |
| Interest if capitalised into the loan | $11,235 |
| Total upfront cost | $9,509.00 |
- This premium is an indicative estimate. Insurers do not publish rate cards — your lender must give you the quoted figure before you commit.
- Saving another 78,000 of deposit reaches 80% and removes the premium completely.
At a 10% deposit on $780,000 the loan-to-value is exactly 90%, which sits in the cheaper band. A dollar less deposit crosses the line and roughly doubles the premium.
Do you qualify
How this is calculated
The premium steps, it does not slide
Rates are banded by loan-to-value and loan size, and the boundary is exclusive — exactly 90% is cheap, 90.1% is not. That step moves the indicative rate from about 1.29% to 2.6% of the loan, roughly $9,200 on a $702,000 loan.
premium = loan × rate(LVR band, loan size band)State duty is charged on the premium
LMI is insurance, so most states levy duty on it — around 5% in NSW and 10% in Victoria. Nearly every published LMI figure omits this, which understates the real cost by hundreds of dollars.
A guarantee scheme place removes it entirely
Under the Home Guarantee Scheme the government guarantees the gap above your 5% deposit, so no insurance is charged at all. That is worth far more than any rate discount a lender will offer you.
Worked example: $780,000 property with a $78,000 deposit in NSW
| Value | $780,000 |
|---|---|
| Deposit | $78,000 (10%) |
| State | NSW |
| Loan | $702,000 |
|---|---|
| Loan-to-value | 90% |
| Deposit to avoid LMI | $156,000 |
Capitalising the premium into the loan spreads it over 30 years, which means paying interest on it for the full term — often more than the premium itself.
What this assumes
- An owner-occupier loan with standard lending criteria.
- A single insurer premium, not a lender-specific agreement.
- Premium capitalised unless you turn it off.
- The premium figure is indicative, not a quote.
Where this commonly goes wrong
- LMI protects the lender, not you — if the property sells at a loss the insurer can still pursue you for the shortfall.
- The premium is generally not portable or refundable, so refinancing within a couple of years usually means paying it again from scratch.
- Some lenders waive LMI entirely for particular professions such as medicine and law, which can be worth more than shopping for a lower rate.
Questions
How much is LMI on a 10% deposit?
On a $780,000 property with $78,000 down the loan is $702,000 at exactly 90% loan-to-value, which falls in the cheaper band at an indicative 1.29%, plus state duty on the premium. A dollar less deposit roughly doubles it.
How do I avoid paying LMI?
Save a 20% deposit, use a Home Guarantee Scheme place with 5%, have a family guarantor, or check whether your profession qualifies for a lender waiver. On $780,000 a 20% deposit is $156,000.
Is LMI charged on top of stamp duty?
Yes, and the premium itself attracts its own state duty — around 5% in NSW and 10% in Victoria. That duty is separate from transfer duty on the property and is missing from most published LMI figures.
Should I add LMI to my loan?
Capitalising avoids finding the cash at settlement but means paying interest on the premium for the whole term. Over 30 years at 6.1% that interest commonly exceeds the premium, so pay it upfront if you can.
Does LMI protect me if I default?
No. It protects the lender. If the property is sold for less than the outstanding loan the insurer pays the lender and can then pursue you for the shortfall, so it is your cost and their protection.
Can I get LMI back if I refinance?
Almost never. Premiums are generally not portable between lenders and only partially refundable within the first year or two, so refinancing shortly after paying LMI usually means paying it again in full.
Related tools
Sources
General estimate based on published ATO rates for the 2026-27. Not tax advice, and it does not consider your objectives, financial situation or needs. Confirm your position with the ATO or a registered tax agent.
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