Stamp Duty Loan – Unlock Your Dream Home Fast (2026)

In the complex world of home buying, stamp duty often emerges as a daunting expense that can catch many prospective homeowners off guard. As property prices in Australia continue to rise, the question lingers: can stamp duty be added to a home loan? Understanding this can help ease your financial burden and make the dream of owning a home more attainable.

Understanding Stamp Duty and Home Loans

Stamp duty, often referred to as transfer duty, is a tax imposed by state governments on property purchases. It's calculated based on the property's purchase price and can significantly impact your overall buying costs. While every buyer wishes to minimise immediate out-of-pocket expenses, knowing whether you can include stamp duty in your home loan is crucial.

In Australia, the rules around adding stamp duty to your loan vary depending on the lender and your financial circumstances. Traditionally, lenders prefer that borrowers pay stamp duty upfront. However, some lenders may allow you to capitalise this cost into your loan, subject to certain conditions.

Current Market Information and Loan Options

As of 2026, the Australian property market remains competitive, with interest rates for home loans ranging from 6.49% to 12%, depending on the lender and the borrower's credit profile. Given the diversity of lenders available through Esteb and Co's network of 83+ lenders, borrowers have access to a wide array of options to suit their needs.

To add stamp duty to your loan, you typically need a Loan-to-Value Ratio (LVR) that allows it. Most lenders prefer an LVR of 80% or less, though some might consider higher LVRs with lenders mortgage insurance (LMI).

Lender	Interest Rate	Max LVR for Stamp Duty Inclusion
Lender A	6.75%	85%
Lender B	7.00%	90% with LMI
Lender C	6.90%	80%

How to Add Stamp Duty to Your Loan

To potentially add stamp duty to your home loan, follow these steps:

1. Assess Your Financial Position: Calculate your savings and determine your current LVR. This will influence your eligibility.
2. Consult with a Mortgage Broker: Engage with a professional, like those at Esteb and Co, to explore your options across multiple lenders.
3. Choose the Right Lender: Select a lender that accommodates stamp duty incorporation into the loan, based on your financial profile.
4. Prepare Documentation: Gather necessary documents such as proof of income, existing debts, and identification.
5. Submit Your Application: Work with your broker to prepare and submit a comprehensive loan application.
6. Approval and Settlement: Once approved, proceed to settlement, ensuring that all financial arrangements, including stamp duty, are clearly outlined.

Tips and Considerations

While adding stamp duty to your loan can alleviate immediate financial pressure, consider these expert tips:

• Impact on LMI: Be aware that increasing your loan amount might necessitate lenders mortgage insurance if your LVR exceeds 80%.
• Long-term Costs: Adding stamp duty to your loan increases the total loan amount, thus increasing the interest paid over the loan's life.
• Market Variability: Interest rates fluctuate; ensure your financial buffer can accommodate potential rate increases.
• State-Based Concessions: Investigate if you're eligible for any state concessions or first-time buyer discounts, which could reduce your stamp duty costs.

Frequently Asked Questions

Can all buyers add stamp duty to their loan?

Not necessarily. It depends on the lender's policies and your financial circumstances, including your LVR and credit profile.

Does adding stamp duty to a loan affect my interest rate?

Potentially, as a higher loan amount could influence your LVR and the level of risk perceived by the lender.

Are there any downsides to adding stamp duty to my loan?

Yes, it increases your overall loan amount and the interest paid over time, impacting your long-term financial commitments.

How can I reduce my stamp duty costs?

Investigate state-based concessions, first home buyer grants, or purchase in areas with lower property prices to minimise stamp duty.

Can I add other costs to my home loan?

Some lenders might allow additional costs like legal fees or LMI to be added, but this depends on the lender's terms and your financial position.

What happens if my loan application is declined?

If declined, work with your mortgage broker to identify alternative lenders or adjust your financial strategy.

Why should I use a broker like Esteb and Co?

With access to a diverse panel of 83+ lenders, brokers at Esteb and Co can offer tailored solutions to maximise your borrowing potential and streamline the loan process.