VIC LMI Calculator
Free · No sign-up · Checked 29 September 2026
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You may not need to pay LMI. The 5% Deposit Scheme lets eligible buyers purchase with a 5% deposit and no LMI, up to $950,000 in this area. The estimate below is what you would pay without it.
- Loan
- $630,000
- LVR
- 90.0%
Likely LMI
$9,400 to $18,300
Typical lender figure: $12,600
- Duty on LMI in Victoria: 10% of the premium. Lenders' examples do not say whether they include it, so the top of the range adds it. This is the state's general insurance duty rate, so confirm it with your lender.
- LVR after adding LMI to the loan: 91.3% to 92.6%.
- To avoid LMI: add $70,000 to your deposit to reach 20%. Try the home deposit calculator.
Closest published lender figures
Range built from 27 LMI figures published by 8 Australian lenders, checked 29 September 2026. How this is calculated.
Estimate only. General information, not credit or financial advice. Your lender and its insurer set the actual LMI premium.
Buying in another state? Use the LMI calculator for every state.
The 10% Victorian duty on LMI is our reading of the State Revenue Office's rules, so confirm it with your lender. Victoria also offers first home buyers no transfer duty up to $600,000 if eligible, which changes transfer duty, not LMI.
How much is LMI in VIC?
On a $786,718 home in Melbourne with a 10% deposit, published lender figures put LMI at about $10,600 to $20,500, with a typical figure of $14,200. The top of that range includes VIC's 10% duty. $786,718 was Melbourne's median dwelling value as at 31 August 2026 (Cotality Home Value Index, published 1 September 2026).
| Deposit | Loan | LVR | Typical LMI | Likely range, top incl 10% duty | With the 5% Deposit Scheme |
|---|---|---|---|---|---|
| 15% | $668,710 | 85.0% | $6,700 | $5,100 to $15,100 | $0 if eligible |
| 10% | $708,046 | 90.0% | $14,200 | $10,600 to $20,500 | $0 if eligible |
| 5% | $747,382 | 95.0% | $31,400 | $22,000 to $43,300 | $0 if eligible |
At $650,000, the scheme cap outside Melbourne and Geelong, a 5% deposit means LMI of about $18,200 to $35,700 without the scheme, and $0 with it if you are eligible. For every state and deposit, see how much LMI costs.
What duty does VIC charge on LMI?
Victoria charges 10% duty on the LMI premium.
The State Revenue Office charges general insurance duty at 10% of the gross premium. Its pages do not list LMI on its own, so the 10% is our reading of SRO's rules. Confirm it with your lender.
In NSW the same premium carries no duty, and in South Australia it carries 11%. In the calculator, the 10% is added to the top of the range for a Victorian home.
Why LMI in Victoria still carries 10% duty
Victoria is phasing out duty on business insurance, which is 7% for 1 July 2026 to 30 June 2027. Mortgage insurance is excluded from that business insurance class, so the phase-out does not cover LMI under the current rules, and LMI stays in general insurance at 10%.
5% Deposit Scheme price caps in VIC
In VIC the 5% Deposit Scheme cap is $950,000 in Melbourne and Geelong, and $650,000 in the rest of the state. The scheme was called the Home Guarantee Scheme until 1 October 2025, and its first home stream is still the First Home Guarantee in the law.
| Area | Cap now | 5% deposit at the cap | 2% deposit at the cap (single parents) | Cap before 1 October 2025 |
|---|---|---|---|---|
| Melbourne and Geelong | $950,000 | $47,500 | $19,000 | $800,000 |
| Rest of Victoria | $650,000 | $32,500 | $13,000 | $650,000 |
Regional centres on the higher cap in VIC: Geelong.
Both the price and the lender's valuation must be at or under the cap.
The Regional First Home Buyer Guarantee closed to new applicants on 1 October 2025. Regional buyers now use these caps.
What first home buyer help does VIC offer?
Victorian first home buyers can get no transfer duty up to $600,000, reduced duty up to $750,000, and a $10,000 grant on a new home worth up to $750,000. None of it reduces LMI or the duty on LMI.
| Help | What it is worth | Value limit | Main conditions | Source |
|---|---|---|---|---|
| First home buyer duty exemption or concession | No duty up to $600,000; reduced duty from $600,001 to $750,000 | Dutiable value (the greater of the price and the market value) up to $750,000; new or established home, or vacant land for your first home. | At least one buyer is an Australian citizen, NZ citizen or permanent resident; not eligible if you or your partner already had a First Home Owner Grant or first home duty benefit, or owned and lived in a home for 6 months or more since 1 July 2000; live there for 12 continuous months within 12 months of settlement. | SRO Victoria, updated 15 September 2026 |
| First Home Owner Grant | $10,000 | New home worth up to $750,000 (the contract price for off-the-plan). | New homes only, never sold, lived in, leased or used for short stays; at least one buyer is an Australian citizen or permanent resident; one buyer lives there for 12 months, starting within 12 months. | SRO Victoria, updated 29 September 2026 |
Eligibility is decided by the revenue office, not by this page. Work out transfer duty with your state revenue office's own calculator.
Where VIC help and the 5% Deposit Scheme overlap
In Victoria the first home duty help stops at $750,000, and the scheme stops at $950,000 in Melbourne and Geelong or $650,000 elsewhere.
| Price | VIC transfer duty for first home buyers | 5% Deposit Scheme | LMI below a 20% deposit |
|---|---|---|---|
| Up to $600,000 | None | All of Victoria | None if eligible for the scheme, otherwise applies |
| $600,001 to $650,000 | Reduced duty | All of Victoria | None if eligible for the scheme, otherwise applies |
| $650,001 to $750,000 | Reduced duty | Melbourne and Geelong | None if eligible for the scheme, otherwise applies |
| $750,001 to $950,000 | Full duty | Melbourne and Geelong | None if eligible for the scheme, otherwise applies |
| Above $950,000 | Full duty | Not available | Applies |
Why the regional Victorian cap did not rise
The rest-of-Victoria cap was $650,000 before the 1 October 2025 expansion and is still $650,000, while Melbourne's rose from $800,000 to $950,000. Geelong is the only regional centre on Melbourne's cap.
Take a $700,000 first home with a 5% deposit. Outside Melbourne and Geelong it is over the $650,000 cap, so the scheme is not available and published lender figures put LMI at about $19,600 to $38,500, with the 10% duty at the top. The same home in Geelong is under the $950,000 cap, so an eligible buyer could use the scheme and pay no LMI.
VIC LMI calculator FAQs
Does the 7% business insurance rate apply to LMI?
No. Mortgage insurance is excluded from the business insurance class that Victoria is phasing out, so LMI stays at the 10% general insurance rate. Confirm with your lender.
Do Victorian first home buyers pay duty on LMI?
Yes, at 10%. We found no first home buyer exemption from duty on LMI in Victoria.
Does Geelong count as Melbourne for the 5% Deposit Scheme?
Yes. Geelong shares the $950,000 Melbourne cap. The rest of Victoria is capped at $650,000.
Does Victoria's $600,000 no-duty limit use the price or the valuation?
It uses the dutiable value, which is the greater of the price and the market value.
LMI calculators for other states
Sources
Each source was checked on 29 September 2026.
- SRO Victoria: insurance duty current rates
- SRO Victoria: abolition of duty on business insurance
- SRO Victoria: first home buyer duty exemption or concession
- SRO Victoria: First Home Owner Grant
- 5% Deposit Scheme property price caps (firsthomebuyers.gov.au)
- Housing Australia: higher price caps from 1 October 2025
- Cotality Home Value Index, September 2026 (PDF)
- CommBank: published LMI example
- ANZ: published LMI example
- ME Bank: published LMI example
- Keystart: published LMI example
- Great Southern Bank: published LMI example
- Homestar Finance: published LMI example
- loans.com.au: published LMI example
- Credit Union SA: published LMI example
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.