Examples
Advance secured by new mortgage package (after 1 September 2007)
If the advance is wholly or predominantly for the purpose of owner occupied housing (whether or not residence in NSW)
No duty in NSW. NSW mortgage does not need to be stamped. (Any further advance that was not for owner occupied housing would be liable on the NSW proportion of that advance).
The advance secured by the new package is used to repay another advance made forthe purpose of owner occupied housing (whether or not residence in NSW)
No duty in NSW. NSW mortgage does not need to be stamped.
Mortgages more than 28 days apart
NSW mortgage first
Advance made for owner occupied housing - no duty
Duty would be payable on the NSW proportion of any further (liable) advance (No credit given for any amounts repaid).
Interstate mortgage first
a) No further advance when NSW mortgage executed.
NSW mortgage liable:
(i) $10 ($50 if first executed on or after 1 January 2009) 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 owner occupied 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 May 2008 an owner occupied 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 ($50 if first executed on or after 1 January 2009) collateral to the initial advance of $500,000.
Existing package
Further advance for owner occupied 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 owner occupied 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.
