Mortgage Loan Insurance Cost Calculator

Mortgage loan insurance helps you qualify for a mortgage with a low down payment. Premiums differ by age, risk profile, and market, and are usually added to your mortgage payments.

What is mortgage loan insurance?

It is lender insurance typically required when the down payment is below a threshold (often 20%). The premium is charged as a percentage or an age/risk-based table and can be added to your loan. Exact rules depend on your country and provider.

How is the monthly cost estimated?

monthly_cost ≈ baseline(age_band) × (loan_amount / 300,000). Best-offer adjusts by smoker status.

For a $300,000 loan, age 30–39 non-smoker: baseline ≈ 36.36. Best offer ≈ 14.31 × 0.51 = 7.29. For a $450,000 loan, scale both by 1.5.

Eligibility criteria (may vary by country)

Minimum down payment threshold and maximum amortization length.
Property value caps and occupancy (owner-occupied vs rental).
Applicant creditworthiness and income stability.
Documentation and underwriting requirements.
Local regulations and insurer guidelines.

Limits and constraints

Property price above the cap may be ineligible.
Amortization beyond permitted limit not allowed.
Certain property types may be excluded.
Health/lifestyle disclosures can affect pricing.

Key factors that impact pricing

Loan amount and down payment (or LTV).
Age band and smoker status.
Amortization and interest environment.
Insurer/provider pricing tables.
Country-specific regulations and fees.

Tips to reduce your insurance cost

Increase your down payment to move into a lower band.
Improve your risk profile (e.g., quit smoking where applicable).
Compare offers from multiple providers.
Optimize amortization and loan amount.

Worked examples

Example A: $300,000 loan, age 30–39, non-smoker – baseline ≈ 36.36, best ≈ 14.31 × 0.51 = 7.29.

Example B: $450,000 loan, age 40–49, smoker – scale ×1.5; apply smoker adjustment.

Example C: $250,000 loan, age 20–29, non-smoker – scale ×0.833.

Frequently asked questions

Is mortgage loan insurance always mandatory?

Generally required when the down payment is below 20% and the loan meets eligibility rules (e.g., amortization limits, property price caps).

Can I pay the premium upfront?

Many lenders allow adding it to the mortgage. Some may offer the option to pay upfront.

Do premium rates change by country or provider?

Yes. This tool uses a universal simplified grid; check your local insurer for exact rates.

What if my down payment is below 5%?

Loans are typically ineligible; this tool returns a 0% rate to indicate not applicable.

Does smoking status affect pricing?

Yes, some providers price risk by smoker/non-smoker bands, age, and health disclosures.

Can I cancel mortgage insurance later?

Policies and conditions vary. Some countries allow cancellation once certain thresholds are met.