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Many people do not realise that when you take out a mortgage you are required to pay mortgage stamp duty. The amount of stamp duty you pay varies between each state and territory and is directly proportional to the size of your loan. The Office of State Revenue website for your State or Territory provides an up to date calculator for you to use.

First Home Owners

If you are an eligible First Home Owner in NSW you may be eligible for additional exemptions or concessions on both Property Transfer and Mortgage Stamp Duty. For additional information please see our section for First Home Owners.

Important Notes on getting a credit for previous mortgage stamp duty

If you currently have an existing mortgage then you may be entitled to a credit. Whether you are entitled to a credit or not will depend on the following points:

• You will only receive a credit if you are refinancing an existing mortgage.
• The amount of credit received will be for the original maximum amount upon which stamp duty was paid, not just the current balance.
• The names on the mortgage must be identical to the details on the mortgage being refinanced. Any change will result in the previous credit being lost and mortgage stamp duty will have to be paid again.
• You do not get a refund if your new loan is smaller than your last; the mortgage stamp duty credit is lost.
• In NSW you are only entitled to a credit for the first $1 000 000 – above this level stamp duty must be paid again.

Example: If you have a loan in your own name and refinance it to another bank then if you ensure that the name on the loan details is exactly the same then you will receive a credit up to the value of your current loan. If you were to refinance and include someone else on the loan (eg your partner) then the loan details are not exactly the same and you would be required to pay mortgage stamp duty again in full.

It is important that you understand that you will only receive a credit if you are refinancing an existing mortgage. In this case you will receive a credit for the amount of stamp duty paid on the original mortgage and have to pay stamp duty on any amount above that.

How do I Claim my credit for mortgage stamp duty?

Generally the forms are included with your mortgage documents when you sign them. Often the bank you are refinancing to will ask for a copy of the documents you signed with your current lender so they can ensure they use the correct names on the new documents so you get your credit. If this does not occur or it is a private mortgage then the relevant forms may be obtained from the Office of State Revenue in your State or Territory.