What Happens If The Clients Can’t Afford Stamp Duty?

Mortgage brokers who are assisting their clients with home loan research and applications should be prepared to adequately answer any questions or concerns that may arise regarding stamp duty. Stamp duty refers to a type of taxation charged by the Australian state and territory governments for a wide variety of purchasing, including vehicle registrations and transfers, Hire Purchase Agreement contracts, lease and mortgage agreements, property transfers, lease and mortgage agreements, and property transfers. 

If a client is unable to afford the required stamp duty, they have the potential of facing several consequences, including facing prosecution, forced property sales, jail time, and heavy fines. Some clients may be eligible to receive stamp duty exemptions or concessions depending on a wide variety of factors, including where the client currently resides. To learn more about stamp duty concessions and exemptions, visit the Australian Taxation Office’s official website. 

Clients should prepare for stamp duty before deciding to apply for a home loan or agree to any arrangements. An easy way to begin preparing for stamp duty when purchasing a home is by using a free online Stamp Duty Calculator and creating a successful savings plan. Additionally, clients can benefit from meeting with their existing mortgage broker to inquire further about more in-depth information regarding stamp duty. 

Stamp duty is oftentimes required to be paid by a client before they legally own a property or no more than 30 days after the purchase has been completed depending on the individual mortgage broker.