Most states in Aus when you take out a mortgage, the original signed mortage document gets stamped by an agent of the office of state revenue (this stamp shows how much duty you have paid on the mortgage/ loan size you requested). This is then referred to as the 'prime stamped mortgage'.
When you refianance and you want credit for the duty already paid, this document is needed at settlement as proof that you have already paid x amount of mortgage stamp duty. The refiancing institution will then only allow you to be charged duty on the increase portion. E.G. Your first loan was 200K, and the new one is 300K. The new financier will pay duty on your behalf on 100K rather than 300K minus any exemptions/ rebates applicable. They are said to have 'transferred' they duty that you already paid on the 200K in this instance.
source:
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment