Can the stamp duty be included in my home loan?

When buying a home or getting a new mortgage in Australia, there are a number of fees and charges that apply. These include stamp duty, mortgage registration fees, legal fees, and lender’s mortgage insurance. It can be confusing to understand all the fees and charges, and how they affect your home loan. A mortgage broker can help explain the best options for borrowers and how to include stamp duty in your home loan.

Stamp duty is a tax imposed by the state government when you purchase a property. It is calculated based on the purchase price of the property and the state in which the property is located. The amount of stamp duty payable can vary significantly from state to state, so it is important to understand the stamp duty rates in your state.

Mortgage registration fees are fees charged by the lender to register the mortgage on the property. These fees are usually a percentage of the loan amount and can vary from lender to lender.

Legal fees are fees charged by the solicitor or conveyancer for their services in preparing the legal documents for the purchase of the property. These fees can vary depending on the complexity of the transaction.

Lender’s mortgage insurance (LMI) is an insurance policy taken out by the lender to protect them in the event that the borrower defaults on the loan. The cost of LMI is usually a percentage of the loan amount and can vary from lender to lender.

When considering a home loan, it is important to understand all the fees and charges that apply. A mortgage broker can help explain the best options for borrowers and how to include stamp duty in your home loan.

For example, some lenders may allow you to include the stamp duty in your home loan. This means that you can borrow the full amount of the purchase price, including the stamp duty, and pay it off over the life of the loan. This can be a great option for borrowers who don’t have the funds available to pay the stamp duty upfront.

Alternatively, some lenders may offer a ‘no stamp duty’ loan. This means that the lender will cover the cost of the stamp duty, but the borrower will need to pay a higher interest rate on the loan. This can be a good option for borrowers who don’t have the funds available to pay the stamp duty upfront, but who don’t want to pay a higher interest rate.

It is important to understand all the fees and charges that apply when buying a home or getting a new mortgage in Australia. A mortgage broker can help explain the best options for borrowers and how to include stamp duty in your home loan. They can also help you compare different loan products and find the one that best suits your needs.