Mortgage Stamp Duty Question

[LearningMan]

OK - thought I would ask the experts.

Here is my situation.

1) Purchased IP which became PPOR and then once again became IP.
2) Paid entire loan off.
3) Took out equity from IP for other investements.
4) Bank charged me mortgage stamp duty for loan of IP.

I asked the bank to refund my mortgage stamp duty and they told me that mortgage stampy duty can only be refunded if you re-financing an existing loan.

If the government already charged me my mortgage stamp duty once why should they charge me again ?

Is this correct ?

 

[keithj]

If the government already charged me my mortgage stamp duty once why should they charge me again ?

I believe there is a time limit (1 year ?) between refinancing when mortgage stamp duty does not have to be paid. It probably varies depending on state. Ring the relevant OSR. Which state is the mortgaged property in ?

KJ

 

[LearningMan]

Property is mortgaged in NSW. I will call OSR tomorrow.

 

[LearningMan]

Rang OSR.

The exemption for mortgage stamp duty on applies when refinancing an existing loan.

When I went to the bank and asked for a loan against my IP which I had paid off previously it is now considered a 'new loan' hence no stamp duty excemption applies.

Gotta love Uncle Sam !

 

[Richard Hunt]

FYI there is also a "additional advances" exemption that applies independent of the refinancing exemption and allows a stamp duty concession where the total of additional advances in any 12 month period (other than the 12 mth period directly following the initial advance) does not exceed $10,000.