Stamp Duty in Home Loan? Avoid Extra Costs Fast (2026)

Buying a home is one of the most significant financial decisions you'll ever make, and with it comes a myriad of costs, one of which is stamp duty. As you navigate the complexities of securing a home loan, you might be wondering: "Can I add stamp duty to my home loan?" Understanding the ins and outs of this possibility can make a significant difference in your financial planning and home-buying journey.

Understanding Stamp Duty and Home Loans

Stamp duty, a state government tax, is levied on property transactions. The amount varies based on the property's value and location. It's a considerable expense, often amounting to tens of thousands of dollars. As a prospective homebuyer, you might be exploring ways to manage this cost effectively.

Typically, lenders require that stamp duty be paid upfront and not included in the home loan. However, there are ways to finance this cost indirectly by borrowing more than the property's purchase price, provided you meet specific lending criteria.

Current Market Rates and Loan Requirements

As of 2026, the Australian property market remains competitive, with variable home loan interest rates ranging from 6.49% to 12%. Lenders often assess your borrowing capacity based on your income, expenses, and credit score.

Here’s a comparison of how different lenders might handle the inclusion of additional costs like stamp duty:

At Esteb and Co, our access to 83+ lenders allows us to find tailored solutions to meet your needs, including exploring options for managing stamp duty costs.

Steps to Manage Stamp Duty Costs

While you may not directly add stamp duty to your home loan, here are actionable steps to handle this expense:

1. Assess Your Financial Situation: Understand your current savings and financial commitments to determine if you can pay the stamp duty upfront.
2. Consult with a Mortgage Broker: Engage with a professional, like those at Esteb and Co, to explore your options across multiple lenders.
3. Consider a Higher Loan Amount: If eligible, apply for a loan amount that exceeds the purchase price to cover additional costs.
4. Explore First Home Buyer Concessions: Check if you qualify for any government concessions or grants that can reduce or eliminate stamp duty.
5. Plan for Additional Savings: If possible, save specifically for stamp duty to avoid financing it through a higher home loan amount.

Tips and Considerations

Here are some expert tips to consider when dealing with stamp duty and home loans:

• Loan-to-Value Ratio (LVR): Be mindful of your LVR, as borrowing more can increase your LVR and possibly incur Lenders Mortgage Insurance (LMI).
• Interest Rate Implications: A higher loan amount can result in higher interest payments over the life of the loan.
• Long-term Financial Impact: Consider the long-term financial impact of adding additional costs to your loan, including the total interest paid.
• Stay Informed: Stay updated on any changes in government policies regarding stamp duty that could affect your financial planning.

Frequently Asked Questions

• Can I include stamp duty in my home loan? Generally, stamp duty cannot be directly included, but some lenders may allow borrowing above the property price if you meet criteria.
• What are the risks of borrowing more to cover stamp duty? Higher borrowing can increase your loan-to-value ratio, leading to higher interest rates and possibly triggering LMI.
• Are there any concessions available for first-time buyers? Yes, many states offer concessions or exemptions for first-time homebuyers, which can significantly reduce the stamp duty payable.
• How can a mortgage broker assist me? Brokers, such as Esteb and Co, can provide access to a wide range of lenders and help find solutions tailored to your financial situation.
• What happens if I can’t pay the stamp duty upfront? In such cases, exploring options like borrowing more or checking eligibility for concessions is advisable.
• Is it better to save for stamp duty or borrow more? This depends on your financial situation; saving might reduce long-term costs, while borrowing provides immediate access to funds.
• How does adding costs to my loan affect my repayments? Adding costs can increase your monthly repayments and the total interest paid over the loan term.