Variation to Mortgage
Variation to an Open Mortgage
When additional loan is granted and secured under an existing open mortgage on shares, 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.
Variation to a Fixed Mortgage
Where the amount secured under a mortgage of shares 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 of the same shares 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.
Exemption from Stamp Duty for Mortgage
When the shares are used as a security and the document is signed under hand, it is exempted from Stamp Duty.
Example:
Equitable mortgage is an agreement or a memorandum 'under hand'. This means the agreement is signed but not under seal. Equitable mortgage on shares relates to the creation of a charge on the shares to secure the payment or repayment of money.
Rates and computation
Document | From 22 Feb 2014 |
---|---|
Mortgage | 0.4% of the loan amount granted on the mortgage |
Variation to Mortgage | 0.4% of the loan amount granted on the mortgage |
Equitable Mortgage | Exempted from stamp duty |
Transfer, Assignment or Disposition of any Mortgage or Debenture | 0.2% of the amount transferred, assigned or disposed, inclusive of interest which is in arrear |
Example 1: Assume a loan amount of $250,000 is granted on the mortgage
Mortgage Duty
= 0.4% x $250,000
= $1,000
= $500.00 (maximum duty)
Example 2: Assume a loan amount of $90,500 is granted on the mortgage
Mortgage duty
= 0.4% x $90,500
= $362.00