Multistate mortgage examples

Advance secured by new mortgage package (after 1 July 2008)

If the advance is wholly or predominantly for the purpose of investment housing (whether or not residence in NSW)

The advance secured by the new package is used to repay another advance made for the purpose of investment housing (whether or not residence in NSW)

Advance made for investment housing - no duty
Duty would be payable on the NSW proportion of any further (liable) advance (No credit given for any amounts repaid).

a) No further advance when NSW mortgage executed.
NSW mortgage liable:
(i) $10 if full duty paid or exemption granted interstate
(ii) on NSW proportion of total amount secured if non-taxing jurisdiction first
(iii) under section 218BA if reduced duty paid in another State
b) Further advance made when NSW mortgage executed
(i) If investment housing advance - no duty payable on that advance, but NSW mortgage would be stamped as in (i), (ii), or (iii) above in relation to earlier advances secured.
Example
QLD mortgage stamped on 1 September 2007 to secure an advance of $500,000.
On 1 July 2008 an investment housing advance is made to acquire a residence in NSW. A new mortgage is executed over the NSW property.
Both mortgages secure the total amount outstanding.
No duty payable in NSW in relation to the new advance.
However the NSW mortgage would be stamped $10 collateral to the initial advance of $500,000.

Further advance for investment housing
No duty on that further advance.
Any new NSW mortgage would need to be stamped in relation to the amount secured prior to the investment housing advance. That is:
- (i) $10 if full duty paid in another State,
- (ii) on NSW proportion of amount secured prior to owner occupied advance if other jurisdictions are all non-taxing, or
- (iii) under section 218BA if a reduced rate of duty has been paid in relation to the earlier advance/s.

Last updated: 2008-06-30