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Home Loan Variable: 5.43% (6.02%*) • Home Loan Fixed: 5.14% (6.01%*) • Fixed: 5.14% (6.01%*) • Variable: 5.43% (6.02%*) • Investment IO: 5.59% (6.66%*) • Investment PI: 5.55% (5.96%*)

Loan Insurance Explained

Lenders Mortgage Insurance (LMI) and Loan Protection Insurance (LPI) are two totally different things.

Full glossary is available here

LMI is something your lender will generally require you to pay if you take out a mortgage with less than a 20% deposit.

LPI is something you can optionally purchase to protect you in case you can’t afford to make your loan repayments for a period of time down the track.

LMI does nothing to protect you as the borrower. It only protects the lender, because your loan is seen as higher risk if you’re borrowing more than 80% of a property’s value.

The benefit to you, though, is that LMI allows you to buy a home sooner, without having to save up that whopping 20% for a deposit.

  • It varies quite a lot, and can range anywhere from around 1% to 5% of the loan amount, depending on these factors:
  • Property price
  • Deposit amount
  • Loan to value ratio (LVR)
  • State laws and incentives
  • Whether you’re self-employed
  • Whether the property is for investment purposes

If you’re looking at LMI as an option so that you can purchase your home sooner, I’d be happy to guide you through how much you will need to pay and how it will affect you.

■ ■ ■

 
Download our 40-page First Home Buyer Guide. The book includes a large amount of information that will guide you during the buying process, and it provides you with information on your various finance options. 
FHB Cover, Updated April 2025
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Owner Occ. (Selected P&I Rates)
Interest*
5.14%
Comparison*
6.01%
   
5.39%
5.77%
   
5.39%
6.30%
   
5.49%
5.71%
   
Selected Invest Products (P&I)
Interest*
5.55%
Comparison*
5.96%
   
5.59%
6.57%
   
5.64%
6.45%
   
5.68%
5.97%
   
Selected Multiple Lenders (Fixed)
Interest*
5.14%
Comparison*
6.01%
   
5.39%
5.77%
   
5.39%
6.30%
   
5.49%
5.71%
   
Selected Multiple Lenders (Variable)
Interest*
5.43%
Comparison*
6.02%
   
5.68%
5.88%
   
5.74%
5.75%
   
5.74%
5.76%
   
Selected BIg-4 Lenders (Variable)
Interest*
5.90%
Comparison*
6.03%
   
6.04%
6.05%
   
6.14%
6.14%
   
6.19%
6.20%
   
Selected Invest Products (IO)
Interest*
5.59%
Comparison*
6.66%
   
5.64%
6.44%
   
5.69%
6.14%
   
5.79%
7.73%
   
Home Loan Variable: 5.43% (6.02%*) • Home Loan Fixed: 5.14% (6.01%*) • Fixed: 5.14% (6.01%*) • Variable: 5.43% (6.02%*) • Investment IO: 5.59% (6.66%*) • Investment PI: 5.55% (5.96%*)
Level 1, U17, 15-23 Brookhollow Avenue, Bella Vista NSW 2153
SYDNEY | MELBOURNE | BRISBANE | ADELAIDE

BuyInvestLive. ABN: 48638048343. Credit Licence: 555044. The comparison rate is calculated on a secured loan of $150,000 with a term of 25 years with monthly principal and interest payments. WARNING: This comparison rate is true only for examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Important Information: Applications are subject to credit approval. Full terms and conditions will be included in our loan offer. Fees and charges are payable. Interest rates are subject to change. Offer does not apply to internal refinances and is not transferable between loans. As this advice has been prepared without considering your objectives, financial situation or needs, you should consider its appropriateness to your circumstances before acting on the advice. BuyInvestLive head office is located at L1, U17, 15-23 Brookhollow Avenue Bella Vista NSW 2153.

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