How does this LMI calculator work?
It works out your loan and your loan to value ratio (LVR). If you enter the premium from your lender's quote, including GST, it uses that for the duty and the totals and shows "Using your quoted premium". If you do not, it shows an illustration from generic premium bands, not insurer pricing, and only when the LVR is above 80%. Insurance duty is worked out on the premium including GST and shown as a separate line. The calculator assumes the property is in one state or territory.
| Input | What the calculator does with it |
|---|---|
| Price and deposit | Loan = price minus deposit. LVR = loan divided by the value used, times 100. |
| Lender valuation (optional) | If you enter one below the price, LVR uses the lower of the two. If it is blank or higher, LVR uses the price. |
| Your quoted LMI premium (including GST), optional | Replaces the illustration. The duty and totals use it. Investor premiums are usually higher, so get a quote for an investment loan. |
| State or territory | Applies that jurisdiction's insurance duty rate to the premium including GST, as a separate line. One state or territory only: if the loan has security in more than one, ask the lender. |
| First home buyer | Only shows a message about schemes that may avoid LMI and links to the eligibility checker. It does not decide eligibility. |
| LVR band | Illustration from generic premium bands, not insurer pricing, as a share of the loan |
|---|---|
| 80% or below | 0%. LMI is usually not charged. |
| Above 80% up to 85% LVR | 1.35% |
| Above 85% up to 90% LVR | 2.25% |
| Above 90% LVR | 4.3% |
These bands are an approximation and have not been tested against insurer pricing, so no accuracy is claimed. Real premiums depend on the insurer, the lender, the loan size, the product and tax. Nothing on this page is the price any lender will charge you. For an indicative insurer figure, use Helia’s LMI fee estimator, or enter your lender's quoted premium in the calculator.
When do you have to pay LMI?
Above 80% LVR, LMI is usually charged. That means you borrow more than 80% of the property's value. At exactly 80% it usually is not. Each lender sets its own policy and uses its own valuation, so the 80% line has exceptions. Moneysmart says LMI is payable when the amount borrowed exceeds 80% of the value, and that it only protects the lender.
| Situation | Usual outcome |
|---|---|
| Loan at 80% of the lender's value or below | LMI is usually not charged |
| Loan above 80% of the lender's value | LMI is usually charged, as a premium the borrower pays |
| Approved loan under an eligible government scheme | No LMI on the scheme loan, if you meet the scheme rules |
| Lender waiver for certain professions | No LMI up to the lender's own LVR limit |
| Family guarantee that lowers the lender's LVR | LMI may not be needed. The guarantor carries real liability |
Sources: Moneysmart and the scheme and lender pages listed under the avoidance table below.
How much LMI would I pay with a 5%, 10% or 15% deposit?
A deposit percentage alone cannot give you a premium. On an $800,000 price, deposits of 5%, 10% and 15% give LVRs of 95%, 90% and 85%. The premium then depends on the insurer, the lender, the loan size and the product, so this page does not quote one.
Illustration: deposit and loan on an assumed $800,000 price
The $800,000 price is a number we chose for the arithmetic. It is not a market price. Lender value is assumed equal to price, and purchase costs are funded separately.
| Deposit | Deposit amount | Loan before LMI | LVR | Premium |
|---|---|---|---|---|
| 5% | $40,000 | $760,000 | 95% | Needs a lender quote |
| 10% | $80,000 | $720,000 | 90% | Needs a lender quote |
| 15% | $120,000 | $680,000 | 85% | Needs a lender quote |
| 20% | $160,000 | $640,000 | 80% | Usually none |
Try your own numbers in the calculator above, then ask a lender for the written premium.
Does the lender's valuation change my LVR?
Yes. LVR is measured against the value the lender uses, and that is often the lower of the price and its valuation. On a $640,000 loan, an $800,000 value gives 80%, a $760,000 value gives 84.2% and a $720,000 value gives 88.9%. The same deposit can cross the 80% line.
Illustration: the lender's valuation changes LVR
Hypothetical inputs and plain arithmetic. None of these values is a prediction or a measured valuation error.
| Price | Deposit | Loan | Value the lender uses | LVR |
|---|---|---|---|---|
| $800,000 | $160,000 | $640,000 | $800,000 | 80.0% |
| $800,000 | $160,000 | $640,000 | $760,000 | 84.2% |
| $800,000 | $160,000 | $640,000 | $720,000 | 88.9% |
The calculator has an optional valuation field for this. Lender policy decides which value applies, so confirm it with the lender.
How much insurance duty applies to an LMI premium in each state?
0% in NSW and the ACT, 9% in Queensland, 10% in Victoria, Western Australia, Tasmania and the Northern Territory, and 11% in South Australia is the insurance duty on the premium. It is separate from stamp duty on the property, and a first home concession on the property does not on its own remove it.
Insurance duty rate on an LMI premium, by state and territory
This chart shows a rate. It is not the cost of your LMI.
| State | Rate | Duty on a $10,000 premium including GST | What the revenue office says |
|---|---|---|---|
| New South Wales | 0% | $0 | LMI over NSW property is exempt from insurance duty where the premium was paid on or after 1 July 2017. |
| Victoria | 10% | $1,000 | The general insurance rate is 10% of the gross premium. The lower business insurance rate (7% for 1 July 2026 to 30 June 2027) does not cover mortgage insurance. The page does not say whether GST is part of the gross premium. |
| Queensland | 9% | $900 | The page lists first home mortgage insurance as class 2 general insurance, charged at 9% of the premium paid, including GST. |
| Western Australia | 10% | $1,000 | Duty is 10% of the total premium, including any GST that applies. |
| South Australia | 11% | $1,100 | Duty is 11% of the premium subject to duty. The page does not say whether GST is part of that premium. |
| Tasmania | 10% | $1,000 | The general insurance rate is 10%. The separate 2% "Mortgage Insurance" entry sits under life insurance and covers repayment on the borrower’s death, so it is not the rate for LMI. |
| Australian Capital Territory | 0% | $0 | Insurance duty was abolished in the ACT on 1 July 2016. |
| Northern Territory | 10% | $1,000 | Duty is 10% of the premium paid for general insurance relating to NT property or risk. The page does not say whether GST is part of the premium paid. |
The $10,000 premium, including GST, is a round number used only to show the rate at work. It is not a quote. The calculator works out duty on the premium including GST and assumes the property is in one state or territory. Bases differ: Queensland, Western Australia and Tasmania state the rate on a premium that includes GST. The Victoria, South Australia and Northern Territory pages do not say whether GST is included, so for those three the figure here may be higher than the duty on your quote; ask the lender how it was worked out. Sources and page dates are listed at the end of this page.
Two traps in the rate tables
Victoria lowers duty on some business insurance from 1 July 2026, but the 7% rate is not the LMI rate. Tasmania lists a 2% "Mortgage Insurance" entry, but it sits under life insurance, so the 10% general rate is the one shown here for LMI. That is our reading of the Tasmanian classification, so confirm it on your quote.
Can I add LMI to my home loan or pay it monthly?
It depends on the lender: some let you pay in cash, add the premium to the loan or pay monthly. This calculator does not show a loan with the premium added. The LMI guide covers the routes and conditions.
How can I avoid LMI without a 20% deposit?
The main routes are a larger deposit, an eligible government scheme, a lender waiver for certain professions, a family guarantee or a state product such as Keystart. The LMI guide covers the routes and conditions, and you can check which schemes you might qualify for.
Can an LMI calculator give me a final quote?
No. A calculator gives an estimate. The premium that applies to you is the one the lender confirms when you apply. Helia's public estimator says its results are an indication only, and shows premiums including GST and excluding stamp duty. To get a real quote, ask the lender or a broker for the written premium, how it is taxed, the valuation used and whether it can be added to the loan.
| Source of a figure | What you get | Tax treatment |
|---|---|---|
| This calculator | LVR, and the duty on a premium you enter. Without one, an illustration from generic premium bands | Duty on the premium including GST. GST itself is not added |
| Helia fee estimator | An indication of one insurer's premium | Including GST, excluding stamp duty |
| Written lender quote | The figure that applies to your loan | Ask for GST and duty to be shown |
Have your price, deposit, state, loan term and whether you will live in the property or invest ready, since these change the figure. Ask for:
- The premium amount, and whether it includes GST
- The insurance duty amount and the rate used
- The valuation the lender used, or will use
- Whether the premium can be added to the loan, and the lender's LVR limit if so
- Whether a monthly premium is available
- Whether a scheme, waiver or guarantee applies, and what it needs
- What happens to the premium if you repay or refinance early
What else do people ask about LMI?
Is the premium this calculator shows my real LMI cost?
Only if you enter it. Without a quoted premium, the calculator shows an illustration from generic premium bands, not insurer pricing. With your quoted premium (including GST) in the box, it uses that figure for the duty and the totals. The real premium is set by the insurer and the lender when you apply, so ask a lender or broker for the written figure.
Who does LMI protect?
LMI protects the lender, not the borrower. Moneysmart describes it as cover that only protects the lender. If the insurer pays the lender after a default, it can then ask the borrower to repay that sum. If the premium is added to the loan, you pay interest on it.
Is insurance duty charged on an LMI premium in every state?
No. It is 0% in New South Wales (exempt where the premium was paid on or after 1 July 2017) and in the ACT (abolished 1 July 2016). It is 9% in Queensland, 10% in Victoria, Western Australia, Tasmania and the Northern Territory, and 11% in South Australia. Rates were read on the revenue office pages on 28 October 2026.
Does the 5% Deposit Scheme mean first home buyers never pay LMI?
No. The scheme page says the expanded scheme has no LMI from 1 October 2025, but only if you meet its eligibility rules, buy within the price cap for the location and use a participating lender. If you stop meeting the ongoing obligations, such as living in the home, the lender may require LMI or other costs. Check which schemes you might qualify for.
Why is my LVR different from my deposit as a share of the price?
Because lenders use their own valuation. If the valuation is below the price, the loan is a larger share of the value the lender uses. On a $640,000 loan, an $800,000 value gives 80% LVR and a $760,000 value gives 84.2%. Lender policy decides which value applies, so confirm it with the lender.
Can I pay LMI monthly instead of upfront?
Sometimes. Helia’s public estimator shows both upfront and monthly premiums, but whether a lender offers a monthly option is up to the lender. Terms, including when monthly premiums stop, are set by the insurer and lender. Ask the lender before you apply.
Where do the figures on this page come from?
Scheme, lender and duty figures come from the official pages below. LVR and the worked examples are NestPath arithmetic. The generic premium bands behind the illustration are NestPath's own and are not sourced.
How we checked: we checked the linked primary sources on 28 October 2026 and calculated the labelled examples from the stated inputs.
- ASIC’s Moneysmart, Lenders mortgage insurance (LMI). Last updated 16 September 2019.
- South Australian Government, HomeSeeker SA, Lenders mortgage insurance. No date shown on the page.
- Helia, LMI fee estimator. No date shown on the page.
- Australian Government, Housing Australia, Australian Government 5% Deposit Scheme. No date shown on the page. Expanded settings from 1 October 2025.
- Australian Government, Housing Australia, Single parents and legal guardians pathway. No date shown on the page.
- Australian Government, Housing Australia, Help to Buy. No date shown on the page.
- Westpac, Healthcare LMI eligibility. No date shown on the page.
- Westpac, Family Security Guarantee. No date shown on the page.
- Keystart, Low Deposit Home Loan. No date shown on the page.
- Revenue NSW, Insurance duty exemptions. No date shown on the page.
- State Revenue Office Victoria, Current insurance rates. Updated 29 September 2026.
- Queensland Revenue Office, Insurance duty rates. Last updated 13 March 2025.
- RevenueWA, Self assess and pay insurance duty. Published 1 April 2019, updated 14 March 2026.
- RevenueSA, Insurance duty rates. No date shown on the page.
- State Revenue Office Tasmania, Rates of duty. Page shows last published 5 August 2026.
- ACT Revenue Office, Tax reform. No date shown on the page.
- Northern Territory Government, Examples of duty and rates. No date shown on the page.
Where can I get a lender specific LMI quote?
A broker can ask lenders for a written premium, check whether a waiver or scheme applies to your situation, and explain what each lender allows. That written figure is what this calculator cannot give you.
NestPath's broker matching is free for you. If you go ahead with a matched broker, the broker pays NestPath a referral fee.
This is general information, not personal advice. The calculator gives estimates only. LMI costs vary between lenders and insurers, and the actual premium may differ a lot.