Mortgage duty abolished from 1 July 2004
Under s148A of the Duties Act 2000, duty on mortgages has been abolished from 1 July 2004. Advances, or further advances that occur on or after 1 July 2004 on mortgages executed before that date, are also not subject to duty.
Mortgages, or further advances exceeding the amount that the mortgage was stamped to secure, were charged with duty. The rate was based on the amount borrowed.
Where no advance was made, the mortgage attracts $4 duty and this duty covers $10,000 of advances.
Where the initial advance was more than $10,000, the duty was $4 plus $0.80 for every $200 or part thereof in excess of the $10,000. Further advances to an existing mortgage attracted duty of $0.80 for every $200 or part thereof of the amount that exceeded the amount to which the mortgage was currently stamped.
The mortgagor was liable to pay the duty within three months of the mortgage being executed if there is no advance, or within three months of the advance or further advance.