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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
 #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

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