Understand your LVR. Estimate your insurance cost.
Calculate your loan-to-value ratio and estimate a potential mortgage insurance cost based on your loan, property value and selected insurance rate.
Enter your loan details
The insurance rate is an assumption for estimation only. Actual mortgage insurance pricing can vary significantly.
LVR & insurance estimate
Your LVR is approximately 80%. The selected 1% rate is used only for this illustrative estimate.
Mortgage insurance can be influenced by your LVR.
Mortgage insurance is a cost that may apply to certain higher-LVR home loans. The exact rules and pricing depend on the lender, insurer, loan structure, location, property and borrower circumstances.
A higher LVR generally means the lender is financing a larger proportion of the property's value. Depending on the lending arrangement, this can affect whether mortgage insurance is required and how much it may cost.
See how your LVR changes the borrowing position.
These examples are illustrative only and do not represent universal mortgage insurance thresholds.
A larger portion of the property value is represented by borrower equity.
The loan represents 70% of the property's value in this simplified example.
An often-used reference level when discussing LVR and mortgage insurance, although rules vary.
A larger share of the property's value is financed by the loan.
$800,000 property with a $640,000 loan.
The loan represents 80% of the property value. If an illustrative insurance rate of 1% is applied to the loan amount, the estimated insurance cost would be $6,400.
This example is mathematical only and does not represent an actual insurer's premium.Common questions about LVR and mortgage insurance.
What is LMI? +
LMI generally refers to mortgage insurance associated with certain higher-LVR lending arrangements. The terminology, thresholds and pricing vary by market and lender.
Does a higher LVR mean higher mortgage insurance? +
It can, depending on the lender and insurance arrangement. Higher-LVR loans may carry different insurance requirements or costs, but there is no universal formula that applies to every lender or location.
Is the LMI estimate accurate? +
The estimate is mathematical rather than a quotation. The calculator applies the insurance rate you enter to the selected calculation basis. Actual mortgage insurance pricing may depend on many additional factors.
Can mortgage insurance be avoided? +
Depending on the lender and lending arrangement, mortgage insurance may not apply at certain LVR levels or may be replaced by another form of risk arrangement. Requirements vary, so the applicable lender terms should always be checked.
Is LMI the same as homeowner's insurance? +
No. Mortgage insurance is associated with the lending arrangement, while homeowner's or property insurance generally protects against specified risks involving the property.
This calculator provides a simplified estimate based on the information entered by the user. Mortgage insurance requirements, premiums, thresholds and calculation methods vary between lenders, insurers, countries and loan products. The estimate is not an insurance quote, lending decision or guarantee of cost. This tool is provided for general informational purposes and is not financial, mortgage, credit, legal or tax advice.
