is there a stamp duty for refinance? i read it in some places they said "might be government stamp duty", i dont really understand it. e.g. on athena home loan they say there's a $260 to $440 government refinance cost.
Stamp Duty Refinance
Gerry H on 14/06/2019 - 14:34
Comments
I think you are thinking of mortgage discharge fees etc. To move the mortgage from one bank to another, you need to lodge with the land registry services a notice the new bank has an interest in the property. This are usually paid to PEXA or an ELNO during a property transfer.
Typically a refinance from the same bank wotn incur these costs, only when refinancing from one bank to another as the mortgage is moved.
There is a "mortgage registration fee" (or similar). This is the government fee payable to allow the lender to register the fact there is a mortgage on the property. The price range you have been quoted is about right, but is subject to the fees charged in each jurisdiction.
The fee would typically be payable only when refinancing across lenders (not with an existing lender).
Is the property in NSW? There used to be stamp duty on mortgages in NSW, but this was finally abolished on 1 July 2016. Some banks obviously haven't changed/reviewed their loan documents in quite some time and they still have it in there, and the robot who prepares the documents doesn't know or care enough to change it.
My understanding is that there are government fees / stamp duty on mortgage documents, which I think is based on the value of the mortgage.
If you are refinancing and taking out a new mortgage, new fees / stamp duty would apply.