LMI Calculator
Estimate Lenders Mortgage Insurance costs.
Lenders Mortgage Insurance (LMI) is required when the loan-to-value ratio (LVR) exceeds 80%. The LMI calculator estimates the premium based on the loan amount and LVR.
LMI premiums increase steeply with LVR. At 85% LVR, expect roughly 1-2% of the loan amount. At 90%, it's 2-3%. At 95%, it can be 3-5%. The exact amount depends on the insurer and lender.
The calculator shows whether LMI can be capitalised (added to the loan) or must be paid upfront. Most lenders allow capitalisation, which means the client doesn't need the cash at settlement but the loan amount increases.
Use the LMI calculator to show clients the cost impact of different deposit levels. Often, an extra $10,000 in deposit can save $5,000-$15,000 in LMI.
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