Examples
New mortgages only
Mortgage secures an advance for investment 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 investment 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 July 2008 to purchase two NSW properties (an owner occupied property and an investment property). The mortgagors and borrowers are natural persons.
No duty is payable and the mortgages do not need to be stamped or marked.
An advance of $1 million is made to natural persons on 1 July 2008 to purchase investment housing. 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 investment housing. Later a further advance of $100,000 is made for commercial 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 investment housing only. Later a further advance of $400,000 is made to buy a business. 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 collateral to $400,000.
X has an existing mortgage to finance the purchase of investment housing 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 investment housing loan (s221C (4)(d)).
