Mortgage News

Mortgage Loan - Fair Dinkum Finance

Mortgage Duty will be abolished in 2016.

Mortgage duty is duty charged on the amount secured by a mortgage.

The amount secured by a mortgage is the amount of any advance made under the agreement, understanding or arrangement for which the mortgage is security.

Mortgage duty is paid within 3 months after the date of the first signing the document or the date of an advance.

What is a mortgage?

An instrument is a mortgage if it is:

  • a security by way of mortgage or charge over property wholly or partly in New South Wales (NSW) at the liability date
    or
  • a security by way of a transfer or conveyance of any property in NSW that is held in trust to be sold or otherwise converted into money, redeemable before such a sale or conversion either by express stipulation or otherwise, except where the transfer or conveyance is made for the benefit of creditors who accept the transfer or conveyance in full satisfaction of debts owed to them
    or
  • an instrument that, on the deposit of documents of title to property in NSW or instruments creating a charge on property in NSW, becomes a mortgage or evidences the terms of a mortgage.

When does a liability arise?

A mortgage becomes liable to duty on the date of its first execution.

  • A mortgage becomes liable to additional duty on the making of an advance or further advance if, as a result of that advance or further advance, the amount secured by the mortgage exceeds the amount secured by the mortgage at the time a liability to duty last arose under the Duties Act 1997.
  • An instrument of security that does not affect property in NSW at the date of first execution but that affects land in NSW at any time within 12 months after that date becomes liable to duty as a mortgage on the date on which it first affects the land, unless it is exempt from duty.
  • An instrument of security that does not affect property in NSW at the date of first execution but that, at any time after execution, affects relevant property in NSW identified in the instrument or identified under an arrangement in place when the instrument was first executed, becomes liable to duty on the date it first affects that property, unless it is exempt from duty.
  • An instrument that, on the deposit of documents of title to property in New South Wales or instruments creating a charge on property in NSW, becomes a mortgage or evidences the terms of a mortgage becomes liable to duty as a mortgage on the deposit of the documents or instruments.