Stamp Duty in Home Loan? Discover Relief (2026)

When you're preparing to buy a home, the excitement of finding the perfect place can sometimes be overshadowed by the looming financial responsibilities, particularly stamp duty. As a significant expense in the home-buying process, many Australians wonder if they can include stamp duty in their home loan. Understanding how this works can potentially ease the financial burden and make your dream home more accessible.

Understanding Stamp Duty and Home Loans

Stamp duty, also known as transfer duty, is a tax imposed by state and territory governments on property purchases. The amount varies depending on the property's value, location, and sometimes the buyer's residency status. It's often a substantial cost that needs to be paid upfront, which can pose a challenge, especially for first-time homebuyers.

Typically, home loans are designed to cover the property's purchase price, meaning additional costs such as stamp duty need to be paid out of pocket. However, some lenders offer options to include these costs into your loan, subject to certain conditions.

Current Market Information and Options

As of 2026, the Australian property market continues to show resilience with interest rates stabilising after recent fluctuations. Current home loan interest rates range from 6.49% to 12%, depending on the type of loan and the borrower's financial profile. When considering incorporating stamp duty into your home loan, it's crucial to understand the implications on your overall borrowing capacity and repayment terms.

Here are some options for managing stamp duty:

Steps to Include Stamp Duty in Your Home Loan

If you're considering including stamp duty in your home loan, follow these steps:

1. Assess Your Borrowing Capacity: Consult with a mortgage broker, like Esteb and Co, who can access over 83 lenders to evaluate your borrowing power and the feasibility of including stamp duty in your loan.
2. Check Eligibility: Confirm with your lender if they allow stamp duty to be included in the loan and under what conditions.
3. Get Pre-Approval: Secure a pre-approval for a home loan that includes the additional stamp duty cost. This will give you a clearer idea of your budget.
4. Negotiate Loan Terms: Work with your lender to negotiate terms that accommodate the increased loan size without placing undue strain on your finances.
5. Finalise the Loan: Once you have an agreement, proceed with the loan application and ensure all documentation supports your request.

Expert Tips and Considerations

Consider these expert tips when deciding whether to include stamp duty in your home loan:

• Evaluate Long-term Costs: Including stamp duty in your loan increases your debt and interest payments over time. Calculate the total cost to ensure it's a viable option.
• Explore Concessions: First-time homebuyers may qualify for stamp duty concessions or exemptions, significantly reducing the financial burden.
• Maintain a Healthy Deposit: A larger deposit can reduce the need to finance stamp duty, lowering your overall loan size and interest.
• Seek Professional Advice: Consult with a mortgage broker to explore all available options and choose the best strategy for your situation.
• Stay Informed: Keep up-to-date with changes in stamp duty laws and real estate market trends to make informed decisions.

Frequently Asked Questions

1. Can stamp duty be included in a home loan?
   Yes, some lenders allow you to include stamp duty in your home loan, but this depends on your financial situation and the lender's policies.
2. How is stamp duty calculated?
   Stamp duty is calculated based on the property's purchase price and the state's duty rates. Concessions may apply for first-time buyers.
3. Are there any benefits to not including stamp duty in a home loan?
   Not including stamp duty in your loan can reduce your debt and overall interest payments, saving money in the long run.
4. What are the risks of including stamp duty in a home loan?
   Increased loan size and interest payments, potentially impacting your financial stability.
5. How can Esteb and Co assist with this process?
   Esteb and Co can guide you through the process, leveraging their access to over 83 lenders to find the best loan option for your needs.
6. Are there alternatives to financing stamp duty?
   Yes, alternatives include using personal savings, securing a personal loan, or exploring eligible concessions.