How Is Stamp Duty Calculated on a Mortgage?

Stamp duty refers to a type of tax that is charged by territory and state governments for certain types of transactions and documents or transfers of property and land. How much a homeowner will owe in stamp duty largely varies based on where the homeowner lives and the value of the property in question. Generally, stamp duty will be calculated based on 3-4% of the total value of a property. 

If a mortgage broker is approached by a client who is inquiring about stamp duty calculations, they can easily calculate their client’s stamp duty tax by using the free online Mortgage Street Stamp Duty Calculator. 

Individuals are not only required to pay Stamp Duty for purchasing a home but also a wide variety of purchases, including the following examples:

• Property transfers
• Mortgage and lease agreements
• Various insurance policies
• Vehicle transfers and registrations
• Hire Purchase Agreement contracts

Some homeowners may be eligible for Stamp Duty tax exemptions based on what state they currently reside in, including first-time home buyers or individuals receiving pension payments.

Stamp duty is normally required to be paid by a homeowner within 30 days of the successful property transaction and mortgage brokers will generally have the information a homeowner needs to begin paying what is owed. 

Potential homeowners interested in learning more about their individual stamp duty requirements and potential exemptions should reach out to their current mortgage broker or visit the Australian Taxation Office’s official website for more information.