Bonus for NSW Home Buyers

Rod Commins from NSW lawyers, Patterson Houen & Commins, reports on some great news for borrowers and lenders in NSW.

Until recently the State Government imposed stamp duty on various property mortgages but the NSW Duties Act has now been amended to provide that:

• From 1 September 2007, owner occupiers who are purchasing or refinancing mortgages over their property after that date will no longer have to pay ANY mortgage stamp duty. In effect this amounts to a saving of 0.4% of the mortgage amount and, for example, a Mortgagor with a loan in the order of $500,000 will now save some $2,000.
  
• From 1 July 2008, mortgage stamp duty will be abolished on mortgage advances for the purpose of investment housing.

The joy and celebration at this turn of events, however is confined to borrowers who are natural persons and other entities will have to delay their celebrations until 1 July 2009 when NSW will abolish the duty altogether and fall in line with the other states, which have or are currently in the process of abolishing mortgage stamp duty.

Hirers of goods and equipment also received a bonus on 1 July 2007 when stamp duty on hiring arrangements was abolished.