What is LMI? Everything about Lenders Mortgage Insurance
What is LMI? Lenders Mortgage Insurance or LMI, as the name suggests, is insurance for lenders. Lenders hedge their bets on all loans by using...Read More
Find out how much stamp duty you need to pay in you state or territory.
Stamp duty is a state tax on the sale of property and covers the costs of changing the title of the property and ownership details which is usually paid by the buyer. It is important to understand if you are exempted from paying stamp duty because stamp duty can be quite expensive and may impact your overall loan application. By knowing how much you will have to pay in stamp duty, you can better plan for this expense and finalising the purchase of your home.
The amount of stamp duty you pay differs depending on the state or territory that you live in, the purchase price and the type of property that you are buying. Depending on your personal circumstances you may qualify for an exemption on stamp duty.
The amount of stamp duty you pay depends on a number of factors.
There are a couple of ways you can take to avoid paying stamp duty or at least decrease the amount you pay.
It’s important that you consider the stamp duty tax when looking into making a home purchase, as it could end up saving a few thousand dollars off your upfront costs.
Find out if any applicable exemptions and concessions is available to you based on the location you are planning to buy to make sure you can afford this extra expense before committing to a home loan.
For more information, you can visit the Office of State Revenue in your state.
If you engage a solicitor or conveyancer to help you with your purchase, your solicitor will be able to apply for any potential exemption or concession on your behalf. If you are required to pay stamp duty, your solicitor will provide you with instructions on who and how to pay.
With when it needs to be paid, each state differs, but on average you will have about three months to make the payment in full. You can confirm the due date with your solicitor.
With how to make a payment, you can do this via direct deposit, bank transfer, cheque or credit card. All these payment options will be mentioned in the letter sent to you directly by Office of State Revenue or from your solicitor.
Note that you can’t avoid paying it and if you are late, you will incur interest charges which is an unnecessary cost.
Yes, you can capitalise your stamp duty by increasing your home loan to cover the stamp duty cost. For the lender to approve this, you will need to demonstrate that you have enough equity in the property and the ability to service the higher level of debt.
Please note, borrowing the stamp duty fee may cost you more in the long term because you have to pay interest on the loan increase over the next 30 years.
All transfers of land come with stamp duty costs, which you can see by using the stamp duty calculator. The exception to this rule is if you qualify for various concessions and exemptions available from each state, particularly for first home buyers.
Yes, stamp duty is still payable on off the plan property however keep in mind that you may be eligible for concessions and exemptions especially if you are a first home buyer. This includes Victoria, which offers a concession, regardless of whether you intend to live in the property or not.
Other states and territories also offer first home buyer concessions and exemptions for new homes which can also apply to off the plan homes.
No, in most cases you do not have to pay stamp duty again if you are refinancing to another lender so long as there is no change in property ownership i.e. the name on title and ownership percentage remains the same when you refinance.
There are scenarios where stamp duty maybe applicable.
E.g. Mum and dad are retirees looking borrowing money to purchase a car. They currently own 100% of their owner-occupied property valued at $1,000,000 in NSW. They require their son to come on board as borrower to demonstrate to the lender that they can service the requested loan amount. The lender in this example requires the son to have a minimum of 25% ownership in the owner-occupied property and will have to pay stamp duty on his 25% ownership.
Tell us a bit about yourself and we’ll show you which lenders match your unique situation.
No guess work – just expert advice.
We’re experienced in finding the right home loan for you. Connect with one of our mortgage specialist for personalised help.
We appreciate your time enquiring with us. We’ll get in touch within the next 24 hours!
Bank interest rate movements for June 2019 The cash rate has been cut for the second month in a row! The RBA just announced yet...Read More
With a major legislation change implemented recently, Duo Tax Quantity Surveyors reflects on the impact it has had on the Australian property investors. In summary,...Read More
Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn’t take into account any product features or any applicable fees.
*2.99% Interest rate based on an Owners Occupied, Principal and Interest, 3 years fixed period, minimum loan size of $300,000, maximum LVR of 80%, over a 30 year term. Eligibility subject to servicing requirements, contact one of our specialised mortgage brokers for more information.
^4.19% Comparison rate based on a loan of $150,000 over a 25 year term. WARNING: The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.