Existing mortgages
Existing mortgage over an investment home stamped to secure an advance of $500,000 to natural persons.
Amount outstanding as at 1 July 2008 = $400,000. A further advance of $150,000 is made for alterations or improvements.
No duty on further advance and no upstamping required.
Existing mortgage stamped to secure an advance of $500,000 to natural persons for the purpose of investment housing.
Amount outstanding as at 1 July 2008 = $400,000.
The borrowers refinance for $700,000 with the extra $300,000 to be used for commercial purposes.
No duty on the refinance mortgage as the advance is made predominantly to repay an investment housing loan, and no stamping required.
Existing mortgage over investment property stamped.
A further advance is made to buy a residence. A new mortgage is given over the residence and all borrowers' natural persons.
No need to upstamp the existing mortgage. If the new mortgage also secures the earlier advance made to acquire the investment property it would be stamped $50 collateral to secure that earlier amount.
Existing mortgage stamped $741 to secure $200,000. Further advance of $100,000 made on 1 July 2008 for owner occupied housing.
Further advance of $100,000 made on 1 July 2008 for owner investment housing.
No duty and no upstamping required.
Further advance of $50,000 made on 1 August 2008 for commercial purposes. As at 31 July 2008 the amount outstanding under the mortgage is $270,000. Hence following latest advance the amount outstanding is $320,000.
Advance of $50,000 is prima facie dutiable.
Total secured is $320,000, but only stamped to $200,000.
Therefore no credit allowed.
Duty of $200 is payable on the further advance of $50,000.
The mortgage would be upstamped from $200,000 to $250,000.
Existing mortgage stamped $741 to secure $200,000.
Further advance of $100,000 made on 1 July 2008 for investment housing.
No duty and no upstamping required.
Further advance of $50,000 made on 1 August 2008 for commercial purposes.
As at 30 July 2008 the amount outstanding under the mortgage is $180,000. Hence following latest advance the amount outstanding is $230,000.
Advance of $50,000 is prima facie dutiable.
Total secured following further advance is $230,000.
Mortgage stamped to $200,000. Hence duty of $120 is payable on $30,000.
The mortgage is to be upstamped from $200,000 to $230,000.
