Stamp Duty & Home Loan Costs

Simply put - It is a once off fee that is charged due to legal ownership of an asset being transferred to the buyer.

Stamp Duty is one of the most costly components of purchasing your home and it’s very important to be prepared. It is an Australian State and Territory tax that is charged upon buying land or property.

There are Stamp Duty Waivers that are applied to First Home Buyers dependant on the current Concessions offered by the Government.

However there will most likely be a limit of purchase amongst other conditions - such as:

A maximum purchase price, for example - A maximum of a $600,000 property.

The property will need to be the buyers PPR (Principle Place of Residence) meaning you will not be able to receive the Waiver if your proposed property is for Investment purposes.

It is also important to note that different states in Australia have independent rules for Stamp Duty, and some states offer contrasting waivers.

Stamp Duty is generally the bigger cost in comparison to the following, however it is still important to note other fees included in your Home Loan.

The other fees included are:

Mortgage Registration Fees - A fee charged to the Buyer to register the Mortgage in their name

Transfer Fee - A fee charged to the Buyer to transfer the land in their name.

Settlement/Establishment Fees - A fee charged upon settlement

Legal Fees - A fee on your own terms as the Buyer will need a Solicitor to complete a property purchase.

LMI - A fee charged if the Borrower has an LVR above 80% (Refer to LVR section)

It may seem worrying at first, however generally these fees are commonly smaller than larger; and are standard for most Home Loans.

We are here to inform and prepare you as much as possible in order to assist you in achieving your dream home or investment property desires.