Low deposit planning
LMI calculator
Estimate loan-to-value ratio, the deposit gap to 80% LVR, and the repayment impact if a lender-provided LMI amount is added to the loan.
LVR and LMI planning
Check whether LMI may be part of the deposit pathway.
Enter the property value and deposit to estimate LVR. If a lender or broker has given you an LMI figure, add it to see the repayment impact if it is capitalised into the loan.
Short explanation
Understanding LVR and possible LMI
LMI is often part of low-deposit planning because it can affect cash needed, loan amount, repayments, and lender choice. The calculator helps frame the LVR question before a broker checks the real lender view.
What LMI is
Lender's mortgage insurance can apply when the loan is high compared with the property value. It is usually discussed when a borrower has a smaller deposit or higher LVR.
MoneySmart explains that LMI protects the lender, not the borrower. It is different from insurance that protects a borrower if they cannot make repayments.
LVR and deposit size
Loan-to-value ratio compares the loan amount with the property value. A 90% LVR means the loan is 90% of the property's value before any LMI is added.
The 80% LVR figure is a useful planning benchmark, but it is not a complete lender decision. Some borrowers may still proceed above 80% LVR if the lender, insurer, documents, and policy fit.
Paid upfront or added to the loan
Depending on lender policy, LMI may be paid upfront or added to the loan. Adding it to the loan can reduce cash needed at settlement but increases the loan amount and can increase repayments.
This calculator only models the repayment effect when you enter a lender-provided LMI figure. It does not price the premium itself.
Want the full explanation? Read: Deposit explained
Estimate basisHow this LMI calculator works
This tool does not calculate or quote LMI premiums. It models LVR and the repayment impact of an LMI amount only when you enter a figure provided by a lender or broker.
- LVR is calculated as loan amount before LMI divided by property value.
- The 80% LVR benchmark is used as a planning marker because LMI is commonly discussed above that level.
- Repayment impact is calculated by comparing the loan amount before LMI with the loan amount after the entered LMI amount is capitalised.
Frequently asked questions
LMI calculator FAQ
Does this calculator quote LMI?
No. It estimates LVR and shows the repayment impact only if you enter an LMI amount supplied by a lender or broker.
What LVR usually brings LMI into the conversation?
LMI is commonly discussed when borrowing above 80% LVR, but lender policy, insurer rules, property details, and borrower circumstances decide the real outcome.
Does LMI protect me?
No. MoneySmart explains that LMI protects the lender if the borrower cannot repay the loan. It does not protect the borrower from repayment difficulty.
Can LMI be added to the loan?
Sometimes, depending on lender policy and LVR limits. If it is added to the loan, the loan amount and repayments can increase.
Can a broker help reduce or avoid LMI?
A broker can compare deposit, LVR, lender policy, guarantees, grants, schemes, and loan options. They cannot promise LMI will be avoided.
Broker check
A calculator gives you a starting number.
What a broker checks before relying on an LMI estimate.
Treat the estimate as a starting point. A broker still needs to check LVR, deposit source, lender and insurer policy, concessions and cash-to-complete before you rely on it.
- Lender and insurer rulesLMI availability and pricing can vary by lender, insurer, loan size, LVR, property, and borrower profile.
- Deposit and cash to completeA broker can compare the deposit, duty, lender fees, settlement cash, and whether LMI is paid upfront or added to the loan.
- Repayment impactIf LMI is capitalised, the loan amount and repayments can increase. The structure should be checked before relying on it.
This calculator provides a general estimate only. It is not approval, credit advice, insurance advice, tax advice, or a loan recommendation. It does not calculate or quote LMI premiums. Actual LMI availability and cost depend on lender, insurer, LVR, loan size, property, borrower circumstances, documents, and verification.