How LMI Is Calculated: Premium Rate, Stamp Duty and GST
This page shows the formula, a worked example, the duty in every state and territory, and exactly where our figures come from. To skip the maths, use the LMI calculator. If LMI itself is new to you, start with our lenders mortgage insurance guide.
Premium (including GST) = loan × rate for your LVR and loan size
Duty = premium × your state's duty rate
Total LMI = premium + duty
How is LMI calculated?
Work out your LVR, find the premium rate for your LVR and loan size, multiply it by the loan, then add your state's duty on the premium.
- Work out your loan-to-value ratio (LVR): the loan divided by the lower of the purchase price and the lender's valuation, times 100. St.George and QBE both use the lower figure. $450,000 on a $500,000 home is 90%.
- Check that LMI applies. It is usually charged when the LVR is above 80% (CommBank).
- Find the premium rate. It depends on your LVR, your loan size and your lender's insurer. No insurer publishes a complete price list, so this site uses the LMI figures lenders publish themselves.
- Multiply the loan by the rate. The result is the premium, and it already includes 10% GST.
- Add your state's duty on the premium. It ranges from nothing in NSW and the ACT to 11% in South Australia.
- Pay the total at settlement, or add it to the loan, which raises your LVR.
Worked example: a $500,000 home with a 10% deposit in Queensland
Here is the formula on a $500,000 home with a $50,000 deposit in Queensland, using the typical figure from lenders' published examples.
| Step | Calculation | Result |
|---|---|---|
| LVR | $450,000 ÷ $500,000 | 90.0% |
| Rate | Typical rate at 90% LVR (range 1.49% to 2.64%) | 2.00% |
| Premium, including GST | $450,000 × 2.00% | $9,000 |
| GST inside the premium | $9,000 ÷ 11 | $818 |
| Queensland duty | $9,000 × 9% | $810 |
| Total LMI | Premium + duty | $9,810 |
| Published range | Lowest to highest lender rate, top plus duty | $6,700 to $12,900 |
Estimate only. General information, not credit or financial advice. Your lender and its insurer set the actual premium.
Calculate your LMILast step: adding LMI to the loan
Adding LMI to the loan raises your LVR, because the loan grows and the value does not. In the Queensland example, the 90.0% loan becomes about 92.0% once the $9,810 is added. QBE caps the LVR at 95% before the premium is added and 100% after it. The LVR calculator shows the before and after for your own loan.
Why does LMI rise so steeply with LVR?
The premium climbs fast as the LVR rises. In lenders' published figures the typical rate doubles from 85% to 90% LVR, and roughly doubles again from 90% to 95%.
| LVR | Range of rates | Typical rate | Typical on $500,000 | Figures |
|---|---|---|---|---|
| 85% | 0.76% to 2.06% | 1.00% | $5,000 | 7 |
| 90% | 1.49% to 2.64% | 2.00% | $10,000 | 13 |
| 95% | 2.95% to 5.26% | 4.20% | $21,000 | 6 |
So a small change in your deposit can matter. For the dollar figures at every deposit and loan size, see how much LMI costs.
Is GST charged on LMI?
Yes. LMI is general insurance, so the premium includes 10% GST, and it is quoted with GST included.
The ATO says GST is charged on insurance policies other than life insurance, which is input taxed, and health insurance, which is GST-free. QBE quotes its minimum premium of $1,150 including GST. GST is one eleventh of a GST-inclusive premium, so $818 of the $9,000 premium in the example above. State duty is then charged on the premium including GST: Queensland says GST is considered part of the premium.
Is there stamp duty on LMI?
Yes, in six of the eight states and territories. Queensland charges 9% of the premium, South Australia 11%, and Victoria, Western Australia, Tasmania and the Northern Territory 10%. NSW and the ACT charge nothing. To add the transfer duty on the home as well, use the stamp duty and LMI calculator.
| State or territory | Duty | Basis | On the example premium |
|---|---|---|---|
| New South Wales | None | LMI over NSW property is exempt for premiums paid on or after 1 July 2017 | $0 |
| Victoria | 10% | General insurance rate; the state does not name LMI separately | $900 |
| Queensland | 9% | General insurance rate, charged on the premium including GST | $810 |
| Western Australia | 10% | General insurance rate | $900 |
| South Australia | 11% | General insurance rate; mortgage insurance is not on the exemption list | $990 |
| Tasmania | 10% | General insurance rate | $900 |
| Australian Capital Territory | None | Insurance duty abolished on 1 July 2016 | $0 |
| Northern Territory | 10% | General insurance rate; the state does not name LMI separately | $900 |
Duty follows the state the property is in. Where a state's page does not name LMI, we apply its general insurance rate. Westpac and St.George say duty is not refunded if part of the premium is.
Tasmania's 2% "mortgage insurance" rate is not LMI
The 2% "mortgage insurance" rate on Tasmania's duty page is for borrower life cover, not LMI. Tasmania's Duties Act 2001 (section 172) defines a policy of mortgage insurance as a temporary policy of life insurance taken out by a borrower that pays out on the borrower's death. LMI therefore falls under Tasmania's 10% general insurance duty, which is our reading of the Act.
Where do our figures come from?
Every LMI estimate on this site is built from 27 LMI figures that 8 Australian lenders publish themselves, checked 29 September 2026.
- What counts: an exact dollar LMI figure, published by a lender, for a stated loan and LVR. Figures written as "over", "up to" or "save" an amount are left out, and so are figures dated before 2021.
- What is left out and why: government figures, because several were worked out with an insurer's online estimator rather than published by a lender; ubank's example, because it credits a comparison site's calculator; HomeStart's Loan Provision Charge, because it is a lender fee rather than LMI; and duplicates, counted once.
- How the range is built: each figure is turned into a rate (LMI divided by the loan). At 85%, 90% and 95% LVR we take the lowest, middle and highest rate within half a point. Between those points, the rate is worked out in proportion.
- Duty: lenders do not say whether their examples include duty, so the low and typical figures are shown as published and the top of the range adds your state's duty.
- GST: not added, because LMI premiums already include it.
| LVR | Lowest rate | Typical rate | Highest rate | Figures |
|---|---|---|---|---|
| 85% | 0.76% | 1.00% | 2.06% | 7 |
| 90% | 1.49% | 2.00% | 2.64% | 13 |
| 95% | 2.95% | 4.20% | 5.26% | 6 |
What the range cannot tell you
- No lender publishes a figure between 80% and 85% LVR, so the calculator shows only an upper figure there.
- No lender publishes an example for an investment loan, so investment loans use the owner-occupier range.
- The published loans run from $170,000 to $900,000. Outside that, the result is flagged as a rougher guide.
- 7 of the 27 figures are first home buyer examples. They are pooled with the rest, because lenders do not publish matched pairs.
- Several figures date from 2021, and LMI pricing moves. We re-check the sources and add new lender figures as they appear.
All 27 lender figures we use
Every figure behind the range, with a link to where the lender publishes it.
| Lender | Loan | LVR | LMI | Rate | First home buyer | Source date |
|---|---|---|---|---|---|---|
| loans.com.au | $170,000 | 85% | $1,299 | 0.76% | Not stated | 6 March 2025 |
| loans.com.au | $340,000 | 85% | $3,390 | 1.00% | Not stated | 6 March 2025 |
| Credit Union SA | $340,000 | 85% | $7,000 | 2.06% | Not stated | 10 August 2021 |
| Homestar Finance | $425,000 | 85% | $6,810 | 1.60% | Not stated | Not stated |
| loans.com.au | $510,000 | 85% | $5,100 | 1.00% | Not stated | 6 March 2025 |
| ME Bank | $680,000 | 85% | $6,800 | 1.00% | Not stated | 8 Jul 2025 |
| loans.com.au | $850,000 | 85% | $11,135 | 1.31% | Not stated | 6 March 2025 |
| Keystart | $360,000 | 88% | $5,148 | 1.43% | Not stated | Not stated |
| loans.com.au | $180,000 | 90% | $2,684 | 1.49% | Not stated | 6 March 2025 |
| loans.com.au | $360,000 | 90% | $6,944 | 1.93% | Not stated | 6 March 2025 |
| Credit Union SA | $360,000 | 90% | $6,943 | 1.93% | Yes | 10 August 2021 |
| ANZ | $400,000 | 90% | $8,000 | 2.00% | Not stated | Page modified 1 May 2025 |
| CommBank | $450,000 | 90% | $9,000 | 2.00% | Not stated | PDF created 7 Nov 2025 |
| Homestar Finance | $450,000 | 90% | $11,865 | 2.64% | Not stated | Not stated |
| loans.com.au | $540,000 | 90% | $10,800 | 2.00% | Not stated | 6 March 2025 |
| Credit Union SA | $540,000 | 90% | $13,284 | 2.46% | Yes | 10 August 2021 |
| ANZ | $720,000 | 90% | $17,699 | 2.46% | Not stated | April 2024 (document code) |
| ME Bank | $720,000 | 90% | $14,000 | 1.94% | Not stated | 8 Jul 2025 |
| loans.com.au | $720,000 | 90% | $14,400 | 2.00% | Not stated | 6 March 2025 |
| Credit Union SA | $720,000 | 90% | $17,712 | 2.46% | Yes | 10 August 2021 |
| loans.com.au | $900,000 | 90% | $22,392 | 2.49% | Not stated | 6 March 2025 |
| Credit Union SA | $380,000 | 95% | $11,897 | 3.13% | Yes | 10 August 2021 |
| Great Southern Bank | $475,000 | 95% | $14,000 | 2.95% | Yes | 22 July 2021 |
| Credit Union SA | $570,000 | 95% | $23,954 | 4.20% | Yes | 10 August 2021 |
| ANZ | $760,000 | 95% | $36,187 | 4.76% | Not stated | August 2024 (document code) |
| ME Bank | $760,000 | 95% | $40,000 | 5.26% | Not stated | 8 Jul 2025 |
| Credit Union SA | $760,000 | 95% | $31,939 | 4.20% | Yes | 10 August 2021 |
LVR is rounded to the nearest whole point; the Keystart example is 87.8%. Rate is the LMI divided by the loan. Where a lender published the same figure as another, it is counted once.
Why do LMI figures differ?
Why do insurers' and lenders' premiums differ?
Each lender uses its own LMI insurer, or carries the risk itself, and each insurer sets its own rates. None publishes a complete price list.
| Insurer | Known lenders, as at 29 September 2026 |
|---|---|
| Arch | CommBank (new business from early 2026) and the Westpac group |
| Helia | ING, reappointed from 1 July 2026, and other lenders |
| QBE | Bank Australia, and others |
| Lender itself | Some lenders carry the risk or charge their own fee instead |
The spread shows up in the figures: on the same $720,000 loan at 90% LVR, published lender figures run from $14,000 to $17,712.
Why do online LMI calculators give different answers?
Online calculators do not all use the same source, and not all of them say what they include, such as GST or state duty. So the same loan can show different figures on different sites. This site names the source of every figure behind its range and says what is included.
Corrections and update log
We re-check the figures when a lender changes its published examples, a revenue office changes its duty, or the 5% Deposit Scheme caps change. Every change is dated here. To report an error, use the Contact page.
| Date | What changed | Pages affected |
|---|---|---|
| 28 September 2026 | Duty on the LMI premium checked for all eight states and territories. 5% Deposit Scheme price caps checked. | All calculators and guides |
| 29 September 2026 | Estimates rebuilt as ranges from 27 LMI figures published by 8 lenders, each checked at its source. | All calculators and guides |
Sources
Each source was checked on 29 September 2026.
- loans.com.au: published LMI example
- Credit Union SA: published LMI example
- Homestar Finance: published LMI example
- ME Bank: published LMI example
- Keystart: published LMI example
- ANZ: published LMI example
- CommBank: published LMI example
- Great Southern Bank: published LMI example
- ATO: GST and insurance
- Queensland Revenue Office: insurance duty rates
- Revenue NSW: insurance duty exemptions
- ACT Revenue Office: tax reform
- State Revenue Office Victoria: insurance duty rates
- State Revenue Office Victoria: abolition of duty on business insurance
- WA Government: insurance duty
- RevenueSA: insurance duty rates
- State Revenue Office Tasmania: insurance duty rates
- Tasmania Duties Act 2001, section 172
- Northern Territory: examples of duty and rates
- CommBank: lenders mortgage insurance
- St.George: lenders mortgage insurance
- QBE: LMI Guide (PDF)
- QBE: lenders mortgage insurance
- Fitch Ratings: Arch Lenders Mortgage Indemnity rating (10 September 2026)
- Mortgage Professional Australia: ING returns to Helia
Researched and maintained by
PhD in Financial Studies, 5 years in finance
Every figure on this page comes from a lender, insurer, government or regulator source listed above. Read our editorial policy.