New South Wales Consolidated Acts
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DUTIES ACT 1997 - SECT 221B
Mortgages associated with owner occupied housing
221B Mortgages associated with owner occupied housing
(1) Mortgage duty is not chargeable in respect of a mortgage if the mortgage
secures an advance or advances made for the purpose of owner occupied housing
and no other advances.
(2) If a mortgage secures an advance made for the
purpose of owner occupied housing and another advance that is not made for
that purpose, mortgage duty is not chargeable in respect of the mortgage in
relation to the amount advanced for the purpose of owner occupied housing.
(3) This section applies in respect of a mortgage only if the borrower under
the mortgage is a natural person or, if there is more than one borrower, each
of them is a natural person.
(4) An advance is made for the purpose of owner
occupied housing if it is to be applied wholly or predominantly for one or
more of the following purposes--
(a) financing the acquisition of a residence,
(b) financing the construction of a residence,
(c) financing alterations or
additions to a residence,
(d) financing the acquisition of residential land,
(e) repaying another advance, if the advance to be repaid was made for the
purpose of owner occupied housing (within the meaning of this section).
For the purposes of this section, a
"residence" is a private dwelling house that is used and occupied or intended
to be used and occupied by the borrower, or by any of the borrowers, as a
place of residence.
(6) To avoid doubt, an exemption provided for by this
section is not available in respect of any advance that is to be applied
wholly or predominantly for business or investment purposes (or both).
The Chief Commissioner may, by written instrument, determine the criteria that
may be applied by lenders for the purpose of establishing that the exemption
provided for by this section applies in respect of an advance.
limiting subsection (7), the Chief Commissioner may determine that an advance
is taken to be made for the purpose of owner occupied housing if it meets
criteria set out in any APRA reporting standard relating to housing finance
that is specified by the Chief Commissioner to be applicable to the exemption
under this section.
(9) A determination made by the Chief Commissioner under
(a) may be varied or revoked by the making of a further
(b) has effect according to its tenor.
(10) The exemption
provided for by this section takes effect on and from 1 September 2007.
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