Refinancing concession
- The items listed below are not links. They indicate where you are in this process.
Start
New mortgage
Use of funds
Discharge
Property
Borrowers
Eligible
Not eligible
Mortgage duty will be abolished in three stages:
1 September 2007
Duty is not chargeable on advances made to a natural person/s on or after this date in connection with owner occupied housing. This includes refinancing an owner occupied home loan.
1 July 2008
Duty is not chargeable on advances made to a natural person/s on or after this date for investment housing.
1 July 2012
Mortgage duty is abolished. NSW Mortgage duty will not be chargeable on advances made on or after 1 July 2012.
In certain circumstances, you may be eligible for duty concessions on newly created mortgages where the mortgage is intended to secure the amount of the balance outstanding under an earlier mortgage.
These concessions will only apply where:
the earlier mortgage has been or is to be discharged as part of the refinancing arrangement, and
the borrowers under the refinancing arrangement are the same as the borrowers under the previous arrangement, and
the property being used to secure the refinancing arrangement is (a) the same, (b) substantially the same, or (c) part of the property used under the earlier arrangement.
A refinancing mortgage is taken to be stamped with ad valorem duty as a mortgage in respect of the duty free-refinancing amount.
The 'duty-free refinancing amount' is the lesser of the following amounts:
a) the amount secured by the earlier mortgage on which duty has been paid under the Duties Act or in relation to which an exemption form duty has been obtained,
b) $1,000,000
Where the amount secured under the new arrangement exceeds the duty-free refinancing amount, duty is payable at the rate of $4 per $1,000 (or part thereof) on the excess.
Example:
A previous mortgage was stamped to secure borrowings to $1,500,000. If this amount were refinanced to $1,800,000 the mortgage securing the refinancing arrangement would be taken to be stamped to $1,000,000 (the duty-free refinancing amount).
Duty would then be payable at the rate of $4 per $1,000 on the $800,000 excess ($1,800,000 - $1,000,000). The duty payable would be $3,200.
Exception to the rule:
Where a refinancing mortgage secures land used for primary production or aquaculture the duty-free refinancing amount is the maximum amount payable under or secured by the earlier mortgage, irrespective of the amount.
Note: where an advance is to be refinanced by more than one lender, provided the mortgages given to the lenders together secure the balance outstanding under the earlier mortgage, concessions may still be applied on a pro rata basis.
Select the Start button to find out if you qualify for the concessions.
More information
- Duties Act 1997 - Section 220 'Refinancing of loans'
- Duties Act 1997 – Section 221A 'Exemptions for mortgages associated with housing - defintions'
- Duties Act 1997 – Section 221B 'Mortgages associated with owner occupied housing'
- Duties Act 1997 - Section 221C 'Mortgages associated with investment housing'
- Owner Occupied
- Investment housing
