Mortgages, Charges & Other Fees
Understanding Stamp Duty on Mortgages
Stamp Duty is payable on any document described as:
- Bill of Sale
- Charge
- Hypothecation
- Mortgage
- Pledge
Or any other document by which a mortgage is granted. The property acts as security for a fixed amount of money loaned, or to be loaned to the owner of the interest. For the purpose of this summary a Charge and a Mortgage are considered the same.
A traditional mortgage or charge over a property including;
- Debentures
- Equitable Mortgage
- Legal Mortgage
The rate of Duty payable is dependant on the amount of money advanced (sum secured) and the type of mortgage granted. For immovable property (real estate). For mortgages over moveable property include car or boat loans, furniture loans or other loan where the right to seize the property in the event of non payment is included.
Increase in Mortgage/Unlimited Mortgages
An increase in a Mortgage occurs when the sum secured is increased through the release of additional funds to the owner of the property. An Unlimited Mortgage is often in the form of a Debenture and can be considered as a rolling line of credit, where there is not specific cap to the amount of the money that can be advanced (at the discretion of the Mortgagee)
Where an increase in the Mortgage occurs, Stamp Duty as a Mortgage over Immovable Property will apply only to the increased amount in the first instance (which shall be treated as a new document for timing purposes), but having regard to the total sum advanced as a result of the increase. If the total sum advanced subsequently exceeds the CI $300,000 threshold, Stamp Duty on the entire sum will be increased accordingly through an upstamping, to reflect the higher Stamp Duty rate. Where monies are advanced in US Dollars, a conversion to CI Dollars at the rate of US $1 = CI $0.84 must be applied before establishing Stamp Duty payable, for moveable property please consult the Stamp Duty Act.
Monies may only be released under an unlimited Mortgage agreement if Stamp Duty has been paid up to, or in excess of that amount. On each and every occasion that the sum secured increases it shall be treated as a new document (for timing purpose), but with Stamp Duty payable on only the increased amount, subject to the threshold review as detailed above paragraph.
Submission Requirements
In submitting a document for Stamp Duty you should enclose the following;
- Payment, based on the anticipated rate of Duty and the consideration paid (if applicable). If additional Duty is required you will be advised accordingly. Your election will be deemed based on the payment presented, unless otherwise stated.
- A chattels list, if a deduction for chattels is being made. Further guidance on the completion of a chattels list can be found here.
- Any concession/waiver letter given from the Minister of Finance in relation to Stamp Duty.
If further information is required in order to undertake the Stamp Duty Assessment you will be advised accordingly.