Mortgaging Shares

Variation to Mortgage

Variation to an Open Mortgage

When additional loan is granted and secured under an existing open mortgage on shares, the Stamp Duty payable is the difference between $500 and the duty previously paid.

No further duty is payable if the existing open mortgage has been stamped for the maximum amount of $500.

Variation to a Fixed Mortgage

Where the amount secured under a mortgage of shares is fixed, the mortgage will be stamped based on the fixed amount of the secured loan. This is subject to a maximum duty of $500.

When additional loan is subsequently granted and a further mortgage of the same shares is executed to secure the additional loan, the further mortgage is treated as a fresh security and is liable to full duty. This is also subject to the maximum duty of $500.

Exemption from Stamp Duty for Mortgage

When the shares are used as a security and the document is signed under hand, it is exempted from Stamp Duty.

Example:

Equitable mortgage is an agreement or a memorandum 'under hand'. This means the agreement is signed but not under seal. Equitable mortgage on shares relates to the creation of a charge on the shares to secure the payment or repayment of money.

Rates and computation