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# MATHS CHALLENGE

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the Bank requires that to have Lenders Mortgage Insurance if the deposit is less than 20% of the purchase price. Determine the amount of LMI for a house of 499,000.

May 23, 2017

### 4+0 Answers

#1
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oops sorry the amount is \$479,000

May 23, 2017
#2
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You have to give a table of rates on this one as you did on the \$479,000 house. I gave you a "tentative" answer to that one. But, I may be wrong!.

May 24, 2017
#3
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Not more than \$5,000

Nil

More than \$5,000 up to \$75,000

\$1.50 for each \$100, or part of \$100, over \$5,000

\$75,000 to \$540,000

\$1,050 plus \$3.50 for each \$100, or part of \$100, over \$75,000

\$540,000 to \$1,000,000

\$17,325 plus \$4.50 for each \$100, or part of \$100, over \$540,000

More than \$1,000,000

\$38,025 plus \$5.75 for each \$100, or part of \$100, over \$1,000,000

Additional duty of 3% applies to acquisitions of residential land by foreign persons (including companies and trusts) from 1 October 2016.

May 24, 2017
#4
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OK, I will take a crack at this one, which is exactly the same as "transfer duty" on the house. I made a small mistake on that one which I have adjusted.

\$75,000 to \$479,000 =\$404,000 is: \$1,050 + \$3.50 x \$404,000/100 =\$15,190 - which is LMI for a house of \$479,000.

May 24, 2017