Which Lenders Still Do 95% LVR?
ADS Team
Author
August 18, 2026
24 days ago
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In short: Lending at 95% LVR still exists in Australia but the field is much narrower than at 80%, and the LMI premium at that level is substantial - commonly $30,000 or more on an $800,000 purchase. For eligible first home buyers, a government guarantee scheme achieves the same 5% deposit outcome without any LMI at all.
Key takeaways
- Fewer lenders lend at 95%, and criteria are tighter.
- LMI at 95% is roughly double the premium at 90%.
- Government guarantee schemes remove LMI entirely for eligible buyers.
- Genuine savings requirements often apply at high LVR.
What 95% costs
Indicative LMI premiums on an $800,000 purchase:
| Deposit | LVR | Indicative LMI |
|---|---|---|
| $160,000 | 80% | Nil |
| $120,000 | 85% | ~$8,600 |
| $80,000 | 90% | ~$19,000 |
| $40,000 | 95% | ~$34,000 |
Capitalised onto the loan at 6.5% over 30 years, that $34,000 costs roughly $215 a month and around $43,000 in additional interest over the term.
The tighter criteria
- Genuine savings - often 5% saved over three months, with gifts excluded.
- Stronger credit - little tolerance for adverse history.
- Employment stability, with probation frequently excluded.
- Postcode and property restrictions - high-density and regional locations often capped lower.
- Owner-occupier only at most lenders; investment lending is usually capped at 90%.
The better alternatives to check first
- Government guarantee schemes - 5% deposit, no LMI, for eligible first home buyers within price caps.
- Guarantor loan - family equity brings the effective LVR under 80%, removing LMI entirely.
- Professional waivers - certain occupations access 90% LVR with no LMI.
- Wait and save to 90% - if prices are flat, the LMI saving can exceed the cost of delay.
Frequently asked questions
Can I capitalise the LMI above 95%?
Some lenders allow the premium on top of a 95% loan, taking the total above 95%. Appetite is limited and it increases your starting balance materially.
Is a 5% deposit a bad idea?
It is higher risk - a small price fall puts you in negative equity - but in a rising market the cost of waiting can exceed the LMI. It depends on the market, your income security and your holding period.
Does LMI transfer if I refinance?
No. It is paid to your original lender's insurer for that loan. Refinancing above 80% means paying again, which is a strong reason to get below 80% before switching.
Related reading
- LMI in 2026: What It Costs by Deposit Size
- Guarantor Home Loans: How Family Security Works
- Securitisation and RMBS: How Non-Banks Fund Loans
Sources
- Lenders mortgage insurance — ASIC Moneysmart
- Home Guarantee Scheme — Housing Australia
Information current as at 2 September 2026.
General advice warning: This article contains general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice. Consider whether it is appropriate for you and seek advice from a licensed credit representative before acting.
Any interest rate shown is an example only and is not an offer of credit. Where a rate is quoted, the applicable comparison rate is available from the relevant lender and should be considered alongside it.
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