In the context of a mortgage loan, what does the intangible tax apply to?

The intangible tax specifically applies to new mortgage loans. This tax is levied on the issuance of a mortgage deed or on any new loan that creates a lien on real property. It is a form of taxation that states impose on the privilege of borrowing against property or creating a debt secured by real estate.

This tax generally does not apply to existing mortgages because those loans have already been established and any associated taxes were paid at that time. Similarly, refinancing would not typically incur a new intangible tax because it is considered a modification of an existing loan rather than a new issuance. Commercial loans also fall under the same principle; unless they are newly issued, they wouldn’t be subject to this specific tax either.

Thus, the focus on new mortgage loans accurately describes what the intangible tax is applied to, making it the correct choice.