011. List two (2) types of additional or one-time costs to consider when initially purchasing a 101

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1 Home Finance 4 Marks 011. List two (2) types of additional or one-time costs to consider when initially purchasing a 101 home. Do not include the down payment or mortgage payment. Explain these costs. Additional Costs Explanations i Essential Mathematics: Student Booklet (January 2013)

2 4 Marks g2. Jared is moving away from home and must decide where to live. There are various benefits to owning a house or renting a property. State two (2) benefits of owning a house and two (2) benefits of renting a property. You may 102 choose from the following list: equity no maintenance costs lower insurance cost easier to renovate no property taxes acts as an investment Benefits of owning a house Benefits of renting a property ek7c.ua. i-7,./v? (4 / 2 & 2 a,--,. 2 2 Essential Mathematics: Student Booklet (January 2013)

3 2 Marks Describe two (2) ways people can decrease their Gross Debt Service Ratio (GDSR). 103 l b Let-2-C" C-COL-L 7-7 at/ 2 ci Es%ential Mathematics: Student Booklet (January 2013) 3

4 2 Marks 4. A couple purchased a house in Winnipeg valued at $ The couple also plans on buying comprehensive homeowner's insurance. Calculate the cost of insuring this house if the purchasers choose a policy with a $200 deductible. bat' Use the Manitoba Homeowner's Insurance Rates table on the adtag page. 104 t tie eh) (io7, 3 L( k 4 Essential Mathematics: Student Booklet (January 2013)

5 5. Juan's property has a total assessed value of $ The portioned percentage on his property is 45%. 4 Marks A) Calculate the portioned assessment of the property. (1 mark) i 05 /co 000 )( 0 yc SD 0 B) The municipal tax rate is 12.5 mills The amount of school division tax due is $ The provincial tax credit this year is $775. Calculate Juan's total property tax bill for this year. (3 marks) The Statement and Demand for Taxes on the facing page is provided for rough work only. All calculations and answers must appear on this page. LI 7 co 0 X 12,\-- (oat) (f13, 6 Essential Mathematics: Student Booklet (January 2013)

6 Home Finance 2 Marks 8. State two (2) reasons why a homeowner would spend money on preventative maintenance. 124 V ta-fc S qs ) 18 Essential Mathematics: Student Booldet (June 2013)

7 2 Marks 19. Homeowners must pay a Land Transfer Tax when purchasing a property. This tax is calculated as follows: Value of Property Rate On the first $ % On the next $ (i.e. $ to $90 000) c, Øb b s( 0.5% Ot b u On the next $ (i.e. $ to $ ) On the next $ (i.e. $ to $ ) 1.0% 1.5% On amounts in excess of $ % Calculate the Land Transfer Tax due on a property valued at $ C Essential Mathematics: Student Booklet (June 2013) 19

8 4 Marks 0. State four (4) ongoing or daily expenses of maintaining a house. Choose from the list of expenses below Lawyer's fees Down payment Mortgage payment Utilities Yard care Interest adjustment Property tax Movers Insurance Essential Mathematics: Student Booklet (June 2013)

9 2 Marks 21. A couple owns an older house and they would like to reduce their expenses. State two (2) things they could do to reduce their monthly hearing costs. 127 ( /0 conni(s 174 ' :2 3' r vats' Essential Mathematics: Student Booklet (June 2013) 21

10 2 Marks /0 ) 2. Calculate the monthly payment for a mortgage of $ , amortized over 15 years at a rate.\... of 4% interest per year. 128 Amortization Period of Mortgage Loan When Paid Monthly Amortization Period of Mortgage Loan (Blended payment of principal and interest per $1000 of loan) Interest Rate 5 years 10 years 15 years 20 years 25 years 4.00% $18.40 $10.11 $7.38 $6.04 $ % % % % % % % % % % % % % % % % Essential Mathematics: Student Booklet (June 2013)

11 2 Marks 23. A portion of Joe's monthly mortgage payment goes towards interest. Joe wonders how much interest he will pay over the life of the mortgage. 129 Explain how Joe can calculate this amount. Essential Mathematics: Student Booklet (June 2013) 23

12 Home Finance 4 Marks 1. Carrie is thinking of purchasing a house. The monthly mortgage payment, heating cost, and property tax would be $836.25, $150, and $135, respectively. Carrie has a gross monthly income of $2800. A) Determine Carrie's Gross Debt Service Ratio (GDSR) (3 marks) 101 B) Explain whether Carrie can afford to purchase this house (1 mark) 102 Essential Mathematics: Student Booklet (January 2014) 1

13 2 Marks Determine the monthly payment for a mortgage of $ at an interest rate of 4% for a period of 25 years. 103 Amortization Period of Mortgage Loan When Paid Monthly Amortization Period of Mortgage Loan (Blended payment of principal and interest per $1000 of loan) Interest Rate 5 years 10 years 15 years 20 years 25 years 4.00% $18.40 $10.11 $7.38 $6.04 $ % % % % % / % % % % % % % % % % % z 2 Essential Mathematics: Student Booklet (January 2014)

14 2 Marks 3. State two (2) examples of emergency home repair costs..104 Essential Mathematics: Student Booklet (January 2014) 3

15 4 Marks Calculate the total cost of insurance for a house valued at $ with comprehensive insurance in Area 3 and a $500 deductible. 105 Use the Manitoba Homeowner's Insurance Rates table on the facing page. XI - 4 Essential Mathematics: Student Booklet (January 2014)

16 4 Marks 5. A property has a portioned assessment of $ and has 60 feet of frontage. The municipal mill rate is mills There is a special lighting levy of $3.50 per foot of frontage. Education taxes are $ and there is a Provincial Property Tax Credit of $750. Calculate the total taxes due for this property. 106 All calculations and answers must appear on this page. The Statement and Demand for Taxes on the facing page is provided for rough work only. 6 Essential Mathematics: Student Booklet (January 2014)

17 2 Marks Dan would like to move out of his parents' house. He can afford $700 per month, either for a monthly rent payment or for a monthly mortgage payment. State two (2) reasons why he should rent, rather than purchase, a place to live such as an apartment or a house. 107 _ t- 8 Essential Mathematics: Student Booklet (January 2014)

18 Home Finance 1 Mark 1 A new homeowner has the following costs: [01 Monthly heating cost $150 Mortgage $925 Land transfer tax $250 Home insurance $1000 Property tax adjustment $200 Property tax $1200 Identify a one-time (or additional) cost from the above list. Essential Mathematics: Student Booklet (June 2014) 1

19 4 Marks 2. Complete the following amortization table by filling in the empty boxes Date Payment Interest Principal Unpaid Balance April 15 $ $ $ $ May 15 $ $ t2? S; '3 9t $ June f9, 60 $ $ /V V/Yde 1/ July 15 $ /D $ $ Essential Mathematics: Student Booklet (June 2014)

20 4 Marks. The monthly heating payment for a home is $250. A) State the homeowner's heating costs for 5 years (1 mark) 103 B) If the homeowner installs new windows, it will reduce the heating costs by 30%. Calculate the homeowner's expected heating costs for 5 years if new windows are installed. (2 marks) 104 C) The total cost for the windows is $ Explain whether replacing the windows is a good financial decision. (1 mark) 105 t cd /t? (7t. ct jt Esselte! Mathematics: Student Booklet (June 2014) 3

21 2 Marks ) 4. A couple has chosen a house to purchase. The bank calculates the couple's Gross Debt Service Ratio (GDSR) to be 40%. State two ways the couple could decrease their GDSR Essential Mathematics: Student Booklet (June 2014)

22 2 Marks. Homeowners pay a Land Transfer Tax when purchasing a property. This tax is calculated as follows: 107 Value of Property Rate On the first $ % On the next $ (i.e., $ to $90 000) On the next $ (i.e., $ to $ ) On the next $ (i.e., $ to $ )., 4 0.5% 1.0% 1.5%0 On amounts in excess of $ % Calculate the Land Transfer Tax due on a property valued at $ Essential Mathematics: Student Booklet (June 2014)

23 4 Marks (99-3 State two benefits of owning a house and two benefits of renting a property assuming the monthly payments are the same 108 Benefit of owning a house Benefit of renting a property :v1 6 / 44 r-lv P? a-11 te 2. - \ in 'et 2. /91 if 6 Essential Mathematics: Student Booklet (June 2014)

24 Home Finance Chris buys a house in Carman for $ The bank offers him a mortgage interest rate of 4.75% amortized over 25 years. 4 Marks 101 A) Chris makes a 10% down payment. Calculate the amount that Chris needs to borrow from the bank for his mortgage (2 marks) 0 Ic 102 B) Calculate the monthly mortgage payment. (2 marks) Amortization Period of Mortgage Loan When Paid Monthly (Blended payment of principal and interest per $1000 of loan) Interest Rate 5 years 10 years 15 years 20 years 25 years 4.00% $18.40 $10.11 $7.38 $6.04 $ % % % % % % Essential Mathematics: Student Booklet (January 2015) 1

25 2 Marks. State two factors that may increase or decrease a homeowner's insurance premium /1" h v 1) CA--e21--;ke" r) / 2 t z-s-e ' // 1-/ rt /2 11,7 / V Iry 2 Essential Mathematics: Student Booklet (January 2015)

26 . Describe 2 energy-efficient upgrades that are available to homeowners. 2 Marks 104 Upgrade Description t / Essential Mathematics: Student Booklet (January 2015) 3

27 3 Marks A home has a portioned assessment of $ and a frontage of 50 feet. The municipal tax rate is mills The education taxes are $ Local sewer improvements are assessed at $6 per foot. Calculate the total taxes due if the provincial property tax credit is $ The Statement and Demand for Taxes on the next page is provided for rough work only. All calculations and answers must appear on this page. 2L) 4 Essential Mathematics: Student Booklet (January 2015)

28 1 Mark 106 Explain why the insurance premium would be lower for tenant's insurance rather than homeowner's insurance for the same property. 6 Essential Mathematics: Student BooMet (January 2015)

29 Explain three types of additional (one-time) costs to consider when initially purchasing a home. Do not include the down payment or mortgage payment. 3 Marks 107 Additional Cost Explanation ) yi , 4 /) r a CtiO c \r/i5i /7 3. / 11 Essential Mathematics: Student Booklet (January 2015) 7

30 Home Finance 4 Marks 1. Lorenzo wants to buy a house. His monthly property taxes will be $125, his monthly heating costs will be $160, and his monthly mortgage payment will be $1216. He has a gross income of $ per year. A) Calculate his Gross Debt Service Ratio (GDSR) as a percent. (3 marks) B) Explain if his loan application will be approved based on the GDSR calculated in Part A (1 mark) 192 Essential Mathematics: Student Booklet (June 2015)

31 2 Marks State 2 ways to reduce the interest paid over the life of a mortgage. 103 ber 12,11 Essential Mathematics: Student Booklet (June 2015)

32 2 Marks 3. Betty bought a house for $ She already knows that for the first $ the land transfer tax will cost $900. Calculate the total land transfer tax. Value of Property Rate On the first $ % On the next $ (i.e., $ to $90 000) On the next $ (i.e., $ to $ ) 0.5 A 1.0% _ On the next $50 000,,, 2, (i.e., $ to $ ) ic,66 00 X 1.5% On amounts in excess of $ % Essential Mathematics: Student Booklet (June 2015)

33 2 Marks. Linnea buys a house. Two (2) of her tinily (on-going) expenses are heating costs and mortgage payments. State another 2 daily (on-going) house expenses. 105 Expenses ( Cry 4 Essential Mathematics: Student Booklet (June 2015)

34 Homeowners are responsible for preventative maintenance and emergency repairs on the roof of a house. Roof 2 Marks A) Describe an example of preventative maintenance that should be done to the roof of a house (1 mark) 106 i t12-s- 7 B) Describe an example of an emergency repair that would need to be done to the roof of a house. (1 mark) 107 Essential Mathematics: Student Booklet (June 2015) 5

35 2 Marks 6. Sacha recently purchased a new house with a 20-year mortgage of $ Her monthly mortgage payment is $ A) State the total amount that Sacha will have repaid to the bank at the end of the mortgage. (1 mark) (Jo17 v- 26 B) State the total amount of money paid in interest to the bank over the life of the mortgage. (1 mark) 109 7c Essential Mathematics: Student Booklet (June 2015)

36 Home Finance 4 Marks 1 David is planning on purchasing a house. The monthly mortgage payment will be $925 and the monthly heating costs will be $235. The annual property taxes will be $3180. A) Calculate David's Gross Debt Service Ratio (GDSR) if his gross monthly income is $3958. (3 marks) B) Explain whether David will be approved for the home mortgage. (1 mark) Essential Mathematics: Student Booklet (January 2016)

37 2 Marks A homeowner wants to purchase comprehensive insurance with a $200 deductible. Her house is valued at $ and is located in Area 2. Calculate the total cost of her insurance. Use the Manitoba Homeowner's Insurance Rates table on the facing page. 2 Essential Mathematics: Student Booklet (January 2016)

38 2 Marks. A couple has purchased a house in Brandon for their son to live in while he attends university. State 2 on-going expenses related to home ownership Essential Mathematics: Student Booklet (January 2016)

39 4 Marks 4. Sherry will need a $ mortgage to purchase a house. Amortization Period of Mortgage Loan When Paid Monthly (Blended payment of principal and interest per $1000 of loan) Interest Rate 5 years 10 years 15 years 20 years 25 years 4.00% $18.40 $10.11 $7.38 $6.04 $ % % % % , 5.25% % % % % % % % % % % % A) Determine her monthly mortgage payment if she gets an interest rate of 5.25% and amortizes the mortgage over 20 years. (2 marks) / c B) Calculate the total interest paid over the 20-year mortgage. (2 marks) (Y3 S 0 6 cc Essential Mathematics: Student Booklet (January 2016) 5

40 2 Marks State 2 costs related to preventative home maintenance Essential Mathematics: Student Booklet (January 2016)

41 2 Marks 6. A house and land have an assessed value of $ The portion percentage is 45%. The municipality has a tax rate of 32 mills Calculate the general municipal tax Essential Mathematics: Student Booklet ()anuary 2016) 7

42 Home Finance 1 Mark 1. Jin is purchasing his first house. State 1 additional (one-time) cost to consider when purchasing his house. 101 Essential Mathematics: Student Booklet (June 2016) 1

43 2 Marks 2. Identify the 2 advantages of renting a house compared to buying a house from the list below: 102 building equity lower initial (up front) costs ability to renovate move/leave whenever you want without penalty insurance is cheaper not responsible for any damages Note: Place one response per line. Advantage 1: Advantage 2: 2 Essential Mathematics: Student Booklet (June 2016)

44 4 Marks 3. David took out a mortgage of $ for a new house. He has arranged fmancing for 4% over 20 years. Amortization Period of Mortgage Loan When Paid Monthly Blended payment of principal and interest per $1000 of loan) Interest Rate 5 years 10 years 15 years 20 years 25 years 4.00% $18.40 $10.11 $7.38 $6.04 $ % % % % % % % % % % % % % % % % A) Calculate the monthly mortgage payment. (2 marks) 103 B) Calculate the interest on the first month's payment (2 marks) 104 y Z Essential Mathematics: Student Booklet (June 2016) 3

45 4 Marks 4. Yuri wants to purchase homeowner's insurance for his house valued at $ which is located in Area 4. He wants a standard policy with a $500 deductible. Calculate the total cost of the homeowner's insurance. 105 Use the Manitoba Homeowner's Insurance Rates table on the facing page. 4 Essential Mathematics: Student Sooidet (June 2016)

46 4 Marks Marcia earns $ annually and wants to buy a new house. Her monthly mortgage payments will be $725, the monthly property taxes will be $262.50, and the monthly heating costs will be $215. A) Calculate Marcia's Gross Debt Service Ratio (GDSR). (3 marks) 106 B) Explain whether Marcia will be approved for the home mortgage (1 mark) Essential Mathematics: Student Booklet (June 2016)

47 1 Mark. State 1 energy-efficient improvement available to homeowners. 108 (d vezi Essential Mathematics: Student Booklet (June 2016) 7

48 Manitoba Homeowner's Insurance Rates Amount Manitoba Homeowners Insurance Rates ($500 deductible) Winnipeg Area 2 Area 3 Area 4 Standard Comprehensive Standard Comprehensive Standard Comprehensive Standard Comprehensive $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Additional Amounts Add: Add: Add: Add: Add: Add: Add: Add: per $1000 $3.15 $3.50 $2.75 $3.03 $355 $3.91 $4.72 $5.19 coverage $200 deductible Increase premium by 10% Essential Mathematics: Student Booklet (June 2016) 5

49 STATEMENT AND DEMAND FOR TAXES ERRORS AND OMISSIONS PROPERTY DESCRIPTION EXCEPTED ROLL NUMBER WARD Lot/Section Blk/Twp Plan/Range Frontage/Area Dwell. Units. ALL LAND IN ARREARS FOR MORE THAN ONE YEAR SHALL BE SOLD FOR TAXES Civic Address ALL CHEQUES MADE IN CANADIAN FUNDS Title or Deed No. Current Assessment Land Buildings Status Code TotalProp. Assessment Class Portion % Total Port Assessment HANK RECEIPT CONSTITUTES OFFICIAL RECEIPT RETAIN COPY FOR INCOME TAX PURPOSES ASSESSMENT, SUBJECT TO LOCAL IMPROVEMENT LEVY Descrip ion Total Port Assessment Mill Rate Levy General Municipal MUNICIPAL By-Law No. Term Type Frontage Levy Mill Rate Levy TAXES EDUCATIONAL Description TAXES Provincial Education 1 Provincial Education 2 School Division Tax Total Port Assessment Mill Rate Levy, PROVINCIAL TAX CREDITS (See Manitoba Assessment Levy Enclosure for Additional Manitoba Resident Homeowner Tax Assistance Information) TOTAL TAXES DUE Municipal Tax Education Tax Total Taxes Prov. Credits Net Taxes Arrears/Credits Added Taxes Taxes Due No marks awarded for work done on this page. Provide your answers on p. 6. Essential Mathematics: Student Booklet (January 2013) 7

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