Stamp Duty

 

Stamp duty is a major cost of buying a property that many of us would rather forget about. Stamp duty is a state based tax wich is payable (a) on the property purchase, and (b) on your loan amount. You need to budget for it.

If you are REFINANCING a loan, in most instances the bank approving the new loan will be able to arrange for transfer of stamp duty for the loan amount equal to that which you originally took out.

As an example, if you took out a $300,000 home loan with 'Bank A' in 2004, had made loan repayments and reduced the loan balance to (say) $250,000, and then refinanced in 2007 for a new loan of $350,000, you should only pay stamp duty on $50,000 (ie. new loan $350,000 less original loan $300,000). You should clarify stamp duty rebates prior to applying for finance.

Click Stamp Duty to use our calculators to estimate stamp duty applicable to your transaction.

Don't forget, in most states many first home owners (FHO) are eligible for rebates that aren't included in this table.