Mortgage duty will be abolished in NSW on and from 1 July 2016. As a result, the following changes, pursuant to the Duties Act 1997, will apply:
- Duty will not be payable on any mortgages executed on or after July 2016;
- Duty will not be payable on any advances made on or after 1 July 2016, even if the mortgage was first executed before 1 July 2016;
- Where the mortgage is executed before 1 July 2016 and the initial advance is made on or after 1 July 2016, then $5 duty is payable on the mortgage.
Accordingly, the Land and Property Information (LPI) will no longer require a mortgage to be stamped in order to be registered on the LPI.
The abolition of mortgage duty in NSW will also have effect on the following:
- Collateral mortgages;
- Refinancing mortgages; and
- Multi-state mortgage packages.
Legal practitioners, Lenders, and Borrowers need to be aware of the upcoming changes to mortgage duty liability. Should you need more information please contact us at Bransgroves Lawyers on (02) 9221 9522.