Examples
New mortgages only
Mortgage secures an advance for owner occupied housing only. The mortgagors and borrowers are natural persons.
No duty is payable on the mortgage and does not need to be stamped or marked.
Mortgage secures an advance for owner occupied housing only. The mortgagor is a company and the borrowers are natural persons.
No duty is payable but the mortgage will need to be stamped for registration purposes.
An advance of $1 million is made on 1 September 2007 to purchase two NSW properties (an owner occupied property and an investment property).
If the advance is predominantly (more than 50%) made to purchase the owner occupied property, no duty is payable on either mortgage.
If the advance is predominantly (more than 50%) made to purchase the investment property, full duty is payable. That is $3941 on one mortgage and $10 (collateral) on the other.
Collateral mortgages first executed on or after 1 January 2009 are liable to $50.
Note: If there were two separate loan contracts, this would be regarded as two separate advances and the predominant purpose test would be applied to each.
An advance of $1 million is made to natural persons on 1 September 2007 to purchase an owner occupied home. The security is a mortgage over the property and supported by a guarantee and mortgage given by a company.
No duty is payable on either mortgage and no stamping is required on the mortgage where the mortgagors are natural persons. The mortgage given by the company will need to be stamped for registration purposes.
The mortgage secures an advance of $500,000 for owner occupied housing only. Later a further advance of $100,000 is made for business purposes. Following the further advance the total amount outstanding is $550,000.
No stamping initially required. Duty is payable on the further advance. That is $341 on $100,000. Ignore first advance and no allowance given for any amounts repaid in respect of first advance.
The mortgage secures an advance of $500,000 for owner occupied housing only. Later a further advance of $400,000 is made to buy an investment property. Following the further advance the total amount secured by both mortgages is $700,000.
No stamping initially required. Duty is payable on the further advance ($1,541 on $400,000) on the initial mortgage and the new mortgage is $10 ($50 if first executed on or after 1 January 2009) collateral to $400,000.
A First Home Plus mortgage secures an advance of $550,000 to purchase a home valued at $580,000
If the borrowers are all natural persons, section 221B would apply and no duty would be payable on the mortgage.
X has an existing mortgage to finance the purchase of the family home stamped to $800,000. X and Y (natural persons) refinance that mortgage with another lender for $1.1 million.
No duty on new mortgage. The advance is made predominantly to repay an owner occupied housing loan (s221B (4) (e)).
The mortgage secures an owner occupied advance of $200,000.
No duty.
Further advance of $100,000 made on 1 December 2007 for business purposes.
Duty of $341.00 is payable.
On 1 May 2008 further advance of $50,000 made for business purposes. As at 30 April 2008 the amount outstanding is $280,000. Hence following latest advance the amount outstanding is $330,000.
The advance of $50,000 is prima facie dutiable. Total secured is $330,000 but only stamped to $100,000. Therefore no credit allowed. Duty of $200 is payable on the further advance of $50,000. The mortgage would be upstamped from $100,000 to $150,000.
The mortgage secures an owner occupied advance of $200,000.
No duty.
Further advance of $100,000 made on 1 December 2007 for business purposes.
Duty of $341.00 is payable.
On 1 May 2008 further advance of $50,000 made for business purposes. As at 30 April 2008 the amount outstanding is $70,000. Hence following latest advance the amount outstanding is $120,000.
The advance of $50,000 is prima facie dutiable. Total secured is $120,000 but only stamped to $100,000. Hence, the mortgage needs to be upstamped to $120,000 and duty of $80 is payable.
