1. Variation to an Open Mortgage
When additional loan is granted and secured under an existing open mortgage, the Stamp Duty payable is the difference between $500 and the duty previously paid.
No further duty is payable if the existing open mortgage has been stamped for the maximum amount of $500.
2. Variation to a Fixed Mortgage
Where the amount secured under a mortgage is fixed, the mortgage will be stamped based on the fixed amount of the secured loan. This is subject to a maximum duty of $500.
When additional loan is subsequently granted and a further mortgage on the same property is executed to secure the additional loan, the further mortgage is treated as a fresh security and is liable to full duty . This is also subject to the maximum duty of $500.
Equitable mortgage is an agreement or a memorandum 'under hand'. This means the agreement is signed but not under seal. Equitable mortgage relates to the following:
- The deposit of the title or deed of a property; or
- The creation of a charge on the property to secure the payment or repayment of money.
Stamp Duty may be payable when the property is used as security.