A further mortgage on the same property can attract stamp duty in Singapore. IRAS treats a further mortgage executed to secure additional borrowing after a fixed mortgage as fresh security. Mortgage duty is subject to a $500 cap. The result can differ when the additional borrowing is secured under an existing open mortgage.
Ask the lender or conveyancing lawyer which instrument will secure the additional loan and whether you will sign a further mortgage. The fact that the address stays the same does not answer the document question. Read IRAS’s mortgage duty rules.
- Identify the existing mortgage and the proposed new document.
- Ask whether the additional loan uses existing open security or a further mortgage.
- Check the amount secured and any earlier duty that is relevant.
- Confirm the duty, payment timing and who will handle stamping.
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Compare the two routes
| How the additional loan is secured | What IRAS says to check |
|---|---|
| Under an existing open mortgage already stamped for $500 | No further duty is payable under the rule for that open mortgage |
| Under an existing open mortgage stamped below $500 | Duty is the difference between $500 and the amount previously paid |
| By executing a further mortgage after a fixed mortgage | The further mortgage is treated as fresh security and is subject to duty and its own cap |
IRAS lists the standard mortgage duty rate as 0.4% of the loan amount granted on the mortgage, capped at $500. It also lists different rates for other instruments, such as an equitable mortgage or a mortgage transfer. Confirm the classification that applies to your documents.
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Apply the distinction to a simple example
Suppose a homeowner obtains $80,000 in additional borrowing and executes a further standard mortgage securing that loan. At 0.4%, the illustrative duty is $320. If the additional borrowing were instead secured under an existing open mortgage already stamped at $500, IRAS’s open-mortgage rule would give a different result. Give your lawyer both the existing and proposed documents when asking for the calculation.
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Frequently asked questions
Is the original stamp certificate enough to work out the duty?
It can help show what was paid before. You also need to know how the additional loan is secured and whether a new instrument will be executed.
Is mortgage duty the same as Buyer’s Stamp Duty?
Mortgage duty concerns the security document. Buyer’s Stamp Duty concerns buying or acquiring property. Keep them as separate lines if both appear in your transaction documents.