Duty on mortgages will be abolished from 1 July 2016.
Mortgage duty is payable on the amount secured by a mortgage.
The amount secured by a mortgage is the amount of any advance made under an agreement, understanding or arrangement for which the mortgage is security.
Mortgage duty must be paid within 3 months after the date of the first signing of the document or the date of an advance.
- Duty on mortgages for the purpose of owner occupied housing was abolished on 1 September 2007. Borrowers must be natural persons.
- Duty on mortgages for the purpose of investment housing was abolished on 1 July 2008. Borrowers must be natural persons.
Rates and thresholds
The current rate of duty is:
|Amount secured||Rate of duty|
|$0 – 16,000||$5|
|Over $16,000||$5 plus $4 for every $1,000, or part of $1,000, over $16,000|
|Further advances||$4 for every $1,000, or part of $1,000 of the amount secured|