How much does PMI cost per month?

PMI typically costs 0.5–2.0% of your loan amount annually, depending on LTV and credit score. On a $300,000 loan at 1% annual PMI rate: $3,000/year = $250/month. At 95% LTV with lower credit, PMI can reach 1.5–2.0%: $375–$500/month. Higher down payment = lower PMI rate. PMI cancels when LTV reaches 78% (automatic) or 80% (on request) under US law.

How does Australian LMI differ from US PMI?

Australian LMI (Lender's Mortgage Insurance) is a one-time premium paid upfront or rolled into the loan, unlike US PMI which is paid monthly. LMI typically costs $5,000–$30,000 depending on loan size and LTV. It protects the lender only — not the borrower. The LMI threshold is 80% LTV. Australia's First Home Guarantee scheme lets eligible first-home buyers avoid LMI with only 5% down.

What is CMHC insurance in Canada?

CMHC (Canada Mortgage and Housing Corporation) insurance is required for all mortgages with less than 20% down payment. Premium rates: 5% down = 4.00% of loan; 10% down = 3.10%; 15% down = 2.80%. The premium is added to the mortgage balance. Unlike US PMI, CMHC does not cancel during the loan — it covers the full amortization period. Maximum insured home price: $1.5M (2024).

🇺🇸 PMI (monthly, cancels at 78%) 🇨🇦 CMHC (2.8–4.0% upfront) 🇦🇺 LMI (one-time)

PMI Calculator

Calculate monthly mortgage insurance cost and when it cancels. US PMI is a monthly charge that ends at 78% LTV. Canadian CMHC and Australian LMI are very different structures.

Quick Answer

US PMI: 0.5–2% of loan/year, paid monthly, cancels at 78% LTV. On $320K loan: ~$133–$533/month. Canadian CMHC: 2.8–4% one-time upfront (added to mortgage). Australian LMI: one-time $5K–$30K. All three serve the same purpose — protecting the lender if you default.

💡 PMI automatically cancels at 78% LTV (Homeowners Protection Act). You can request cancellation at 80% LTV.

Home Price ($)

Down Payment ($)

Mortgage Insurance Comparison

Feature	🇺🇸 US PMI	🇨🇦 CMHC	🇦🇺 LMI
Payment method	Monthly (or upfront)	Added to mortgage	Upfront or financed
Typical cost	0.5–2%/year	2.8–4.0% of loan	$5K–$30K one-time
Protects	Lender only	Lender only	Lender only
When it cancels	At 78% LTV (automatic)	Doesn't cancel	Doesn't cancel
Can be avoided by	20% down payment	20% down payment	20% down or FHBG