| LVR band | Est. LMI rate | On $500k loan |
|---|---|---|
| Up to 80% | No LMI | $0 |
| 80.01% to 85% | ~0.58% | ~$2,900 |
| 85.01% to 90% | ~1.36% | ~$6,800 |
| 90.01% to 95% | ~2.48% | ~$12,400 |
LMI protects the lender if you default — not you. Despite this, you pay the premium. It is calculated as a percentage of your loan amount and varies based on your LVR and lender.
The 80% LVR threshold is the key number. Below 80% LVR — meaning your deposit is at least 20% of the property value — no LMI is required. Above 80% LVR, LMI applies and increases significantly at higher LVRs.
For many first home buyers in Adelaide, the choice is between paying LMI and buying sooner, or saving longer to reach 20% and potentially paying more for the property. Lendology models both scenarios and gives you an honest recommendation based on your specific situation.
LMI is insurance that protects the lender — not you — if you default on your loan. It is required when your deposit is less than 20% of the property value (LVR above 80%). The premium is paid by you, either upfront or added to your loan balance.
LMI varies by lender, loan amount and LVR. At 90% LVR on a $600,000 loan the premium is approximately $8,000 to $12,000. At 95% LVR it rises to $15,000 to $20,000. The estimates above are based on published Helia and QBE rate cards — your actual premium may differ.
Yes — through the First Home Guarantee (formerly the First Home Loan Deposit Scheme). Eligible first home buyers can purchase with a 5% deposit and the government guarantees the remaining 15%, meaning no LMI is required. Lendology manages the application process as part of your home loan.
Yes — most lenders allow the LMI premium to be capitalised into your loan rather than paid as a lump sum upfront. This avoids the need for extra cash at settlement but increases your loan balance and the total interest you pay over the life of the loan.
There are two main LMI providers in Australia — Helia (formerly Genworth) and QBE. Your lender chooses which provider they use. The premium rates are similar between providers but not identical. Lendology identifies the lender with the most favourable LMI terms for your situation.