LMI Calculator Guide (Australia)

Lenders Mortgage Insurance (LMI) is typically charged when your deposit is under 20% (LVR above ~80%). It protects the lender — not you.

When LMI usually applies

• Deposit < 20%
• Certain lender policy tiers (80–85–90–95% LVR)
• Some borrowers may have different thresholds depending on risk settings

How to estimate LMI on MoneyWiseCalc

• Tool: Home Loan Repayment Calculator
• Enter property value + deposit
• The calculator estimates LVR and shows an LMI estimate (where enabled)

How to reduce or avoid LMI

• Increase deposit (even small increases can move you to a better LVR tier)
• Use a guarantor (family pledge) — if available and appropriate
• Consider eligible schemes that can avoid LMI with lower deposits (where applicable)

Key caution

Actual LMI varies significantly by lender/insurer and borrower profile. Treat it as an estimate, then confirm with the lender.

Next: Borrowing power guide → Borrowing power guide