Say you are planning for a 25-year mortgage to buy a residential property. The value of the property is $990,000. You are thinking of borrowing over 80% Loan to Value ratio. However, amid the current COVID-19 economic downturn, the banks have tightened up the over 80% LVR lending.

But some banks still offer it with an additional low equity margin (LEM) rate. The current interest rate on the mortgage is 3.20% per annum, and the LEM rate for an LVR between 80.01% to 85.00% is 0.30% per annum. If you are borrowing 85% of the value and if payments are required to be made annually at the end of each year, calculate the following. Please calculate the annual mortgage payment on the loan?