So, you’ve picked up those extra shifts…you’ve said no to Saturday night drinks…and you’ve finally saved a house deposit? 

‍

Congratulations! That’s a big step. But has your budget factored in stamp duty on houses?

‍

Stamp duty (also called transfer duty or SDLT) is a tax that state and territory governments charge to process certain transactions. 

‍

So, that’s things like:

‍

• Car rego and transfers
• Leases and mortgages
• Transfers of property
• Insurance policies.

‍

So, if you previously had a 20% house deposit…but ya didn’t have any cash saved for stamp duty, you may need to rejig your budget. It might mean that you choose to keep saving, or that you opt for lenders mortgage insurance (LMI) to cover the cost of your loan.

‍

What percentage is stamp duty?

‍

Generally, stamp duty is around 5% of the purchase price of the property. However, stamp duty rates and the amount you pay depends on where you live and a few other factors like:

‍

• What kind of asset you plan to purchase
• Whether you’re a first home buyer 
• Whether you’re buying a brand new home, or an established home.

‍

Each state and territory has its own stamp duty calculator on its government website. To save you the trouble of finding your local transfer duty calculator, we’ve linked them all here:

‍

• You live in SA
• You live in NSW
• You live in VIC
• You live in QLD
• You live in WA
• You live in the ACT
• You live in the NT
• You live in TAS

‍

When do I pay stamp duty?

‍

The big thing to remember about stamp duty is that it’s an upfront cost. This means it can’t be added into your home loan - it generally needs to be paid within 30 days of settlement. 

‍

However, this varies depending on where you live. For example, those in SA need to pay stamp duty at the time of settlement. 

‍

Your conveyancer (aka the person who helps organise the transfer of the property on your behalf) will usually arrange for your stamp duty payment to be made to the state revenue office when the time comes.