Deposit & LMI calculator
See your loan-to-value ratio and an indicative Lenders Mortgage Insurance premium, so you know whether your deposit clears the 20% line or what LMI might cost.
Last updated 14 June 2026
Deposit & LMI calculator
See your loan-to-value ratio and an indicative Lenders Mortgage Insurance premium. LMI usually applies when your deposit is under 20% and is not the same as mortgage protection insurance.
90%
A deposit under 20% usually means LMI applies. A guarantor or the First Home Guarantee can avoid it.
This is general information only and does not take into account your objectives, financial situation or needs. It is not credit assistance or a credit quote. Consider whether it is right for you and seek advice. Finance is arranged through Central Lending Solutions, the licensed credit partner The Property Plug works with (Australian Credit Licence or credit representative number [TBC]).
Want to know which path skips LMI for you?
Talk to our finance team →A deposit and LMI calculator shows your loan-to-value ratio and the likely Lenders Mortgage Insurance cost. The Property Plug calculator flags LMI once your deposit drops below 20% of the price, then estimates a premium from an LVR-banded grid. LMI protects the lender, not you. This is general information, not a credit quote.
Why the deposit size matters so much
Your loan-to-value ratio (LVR) is the loan divided by the property value. At 80% or under (a 20%-plus deposit) most lenders waive LMI. Above 80% they charge a premium to insure their risk, and the premium climbs steeply as your deposit shrinks. The jump from a 10% to a 5% deposit can roughly double the premium percentage.
- 20% deposit, 80% LVR. No LMI on most loans. The cleanest, cheapest entry.
- 10% deposit, 90% LVR. LMI applies, at a moderate premium.
- 5% deposit, 95% LVR. LMI applies at the highest band, unless a guarantee scheme covers it.
- Guarantor or First Home Guarantee. Can remove LMI entirely even at a low deposit.
A $600,000 purchase at three deposit levels
On a $600,000 property the deposit you bring decides both your LVR and whether LMI bites. The table shows the trade-off. A larger deposit means a smaller loan and no insurance, but takes longer to save. A guarantee scheme can let you skip the wait without the LMI cost.
| Deposit | LVR | Loan | Indicative LMI |
|---|---|---|---|
| $120,000 (20%) | 80% | $480,000 | Nil |
| $60,000 (10%) | 90% | $540,000 | about $10,800 |
| $30,000 (5%) | 95% | $570,000 | about $21,700 |
Indicative premiums only. The insurer sets the real figure. Last updated 14 June 2026.
You may not have to pay LMI at all
First home buyers building in WA have real ways around LMI. The First Home Guarantee lets eligible buyers in with a 5% deposit and no insurance. A family guarantor can pledge equity to lift you over the 80% line. Keystart lending for eligible WA buyers carries no LMI within its income and price caps. Which one fits depends on your numbers, and that is a free call away.
This is general information only and does not take into account your objectives, financial situation or needs. It is not credit assistance or a credit quote. Consider whether it is right for you and seek advice. Finance is arranged through Central Lending Solutions, the licensed credit partner The Property Plug works with (Australian Credit Licence or credit representative number [TBC]).
What is LMI and who does it protect?
Lenders Mortgage Insurance protects the lender, not you, if you default and the sale does not cover the loan. It is charged when your deposit is under 20% (an LVR above 80%). It is a one-off cost, usually capitalised onto the loan, and it is different from mortgage protection insurance which covers your repayments.
How can I avoid paying LMI?
Three common ways: save a 20% deposit, use a family guarantor who offers equity as additional security, or qualify for the First Home Guarantee which lets eligible first home buyers in with 5% and no LMI. Keystart loans for eligible WA buyers also have no LMI. We can check which path fits you.
Is the LMI figure here exact?
No. LMI premiums are set by the insurer and vary with your LVR, loan size, loan type and circumstances. Our calculator uses an indicative premium grid banded by LVR to give you a realistic guide. Your actual premium is confirmed by the lender during assessment.
Does the grant count toward my deposit?
The $10,000 First Home Owner Grant is generally paid at settlement or first progress draw on a new build, so it can reduce the loan you need rather than sit in your savings up front. Lenders still usually want to see genuine savings as well. We size this properly on a call.
Find the lowest-cost way into your build
Book a free finance call. We check whether a guarantee scheme, a guarantor or a 20% plan saves you the most, then line up the lender.