LMI calculator: what lenders mortgage insurance costs in 2026

On a $600,000 home with a 10% deposit you borrow $540,000, an LVR of 90%. The lender table we use charges 2.18% of the loan, $11,772, and in Victoria 10% duty takes it to $12,949. On an $800,000 home the loan is $720,000 and the premium $17,042 (2.367%), or $18,576 with Queensland's 9% duty. Insurers differ: Helia's own estimator quoted $9,862 and $16,706 for the same two loans on 30 September 2026, before duty.

The insurer sets a rate for each band of loan to value ratio (LVR) and loan size, and the premium is that rate times the whole loan, not just the part above 80%. In the table we use, a $540,000 loan costs 1.948% between 88.01% and 89% LVR, 2.18% up to 90%, then 3.513% just above 90%. Crossing a band edge by a few dollars of deposit can add thousands, which is why a slightly bigger deposit often pays for itself. Your state then adds stamp duty on the premium (none in NSW or the ACT, 9% to 11% elsewhere).

Four routes. An eligible first home buyer can use the Australian Government 5% Deposit Scheme, which has no income test and replaces LMI with a government guarantee under a price cap ($1.5 million in NSW capital cities and regional centres). Single parents can use the Family Home Guarantee with 2%. A family guarantor can secure part of the loan with their own property. Some lenders waive LMI for certain professions, such as doctors and accountants. On the $600,000 example above, any of these saves $12,949.

With some insurers, yes. Helia's estimator quoted a first home buyer $8,856 on a $540,000 loan at 90% LVR, against $9,862 for anyone else, about 10% less (30 September 2026). The lender table in this calculator has no first home buyer discount, so treat its figure as the upper end. The bigger saving is the 5% Deposit Scheme, which removes LMI altogether for eligible buyers under the price cap.

In most states, yes, because LMI is general insurance. Revenue offices charge 9% in Queensland, 10% in Victoria, Western Australia, Tasmania and the Northern Territory, and 11% in South Australia. New South Wales has exempted LMI premiums paid since 1 July 2017, and the ACT abolished insurance duty on 1 July 2016. The duty is charged on top of the premium, so the calculator adds it for the state you pick.

Usually, yes. Helia's LMI factsheet says the fee is passed on as a one-off charge and usually added to the home loan. That spares your savings, but you pay interest on the premium for the life of the loan, and it lifts your LVR slightly. Paying it from savings is cheaper if it does not eat into the deposit that keeps you under a band edge.