Stamp Duty – Can It Ease Home Loan Stress? (2026)

When you're planning to purchase a home, understanding all the associated costs is critical. One of the most significant additional costs is stamp duty, which can put a significant dent in your budget. You might wonder if it's possible to include stamp duty in your home loan, and if so, how to go about it. This guide aims to provide you with a thorough understanding of this topic, helping you make informed decisions as you navigate the home-buying process.

Understanding Stamp Duty and Home Loans

Stamp duty, often referred to as transfer duty, is a tax imposed by state and territory governments in Australia on property purchases. The amount is calculated based on the purchase price of the property, its location, and other factors. As of 2026, stamp duty rates vary across the states, but typically range from 3% to 5% of the property's value.

Including stamp duty in your home loan might seem like an appealing option, especially if you're trying to minimise upfront costs. However, it's essential to understand how this impacts your loan amount and repayment terms.

Rates, Requirements, and Options

When considering including stamp duty in your home loan, it's important to explore the current market landscape and understand the options available to you.

In 2026, interest rates for home loans in Australia range from approximately 6.49% to 12%, depending on the lender and your personal financial circumstances. Whether you can include stamp duty in your home loan often depends on the lender's policies and your borrowing capacity.

It's crucial to assess your eligibility for a larger loan amount, as adding stamp duty could increase your LVR (Loan to Value Ratio), potentially affecting your interest rate and loan terms. With access to over 83 lenders, Esteb and Co can help you find a lender that accommodates your needs.

Steps to Include Stamp Duty in Your Home Loan

Here are the steps you can follow if you're considering including stamp duty in your home loan:

1. Assess Your Borrowing Capacity: Calculate the total amount you wish to borrow, including the property's purchase price and stamp duty. Ensure your financial situation supports this larger loan.
2. Consult with a Mortgage Broker: Engaging with a broker from Esteb and Co can provide valuable insights into which lenders might accommodate your needs. They can guide you through the process and help you compare options.
3. Check Lender Policies: Not all lenders will allow the inclusion of stamp duty in the loan, so it's essential to find one that does. Your broker can assist in identifying these lenders.
4. Prepare Your Documentation: Be ready with all necessary documents, including proof of income, expenses, and credit history, to support your loan application.
5. Submit Your Application: Once you've chosen a lender, submit your application, ensuring you detail the total loan amount, including stamp duty.
6. Review Loan Terms: Carefully review the loan terms, including interest rates and repayment conditions, before finalising your decision.

Tips and Considerations

Including stamp duty in your home loan can be beneficial, but it requires careful consideration:

• Impact on LVR: Be aware that a higher LVR may lead to higher interest rates or the need for Lenders Mortgage Insurance (LMI).
• Long-term Costs: Including stamp duty in your loan increases the principal amount, leading to higher interest costs over the life of the loan.
• First Home Owner Grants: Check if you're eligible for any grants or concessions, as these can significantly reduce your stamp duty liability.
• Consult Professionals: Always seek advice from financial advisors or mortgage brokers to ensure that your decision aligns with your financial goals.

Frequently Asked Questions

1. Can I include stamp duty in my home loan?
   Yes, but it depends on the lender's policies and your borrowing capacity.
2. How does including stamp duty affect my loan?
   It increases your loan amount, which may impact your LVR and interest rates.
3. Are there any alternatives to including stamp duty in my home loan?
   Consider using savings, First Home Owner Grants, or other government concessions to cover stamp duty.
4. What is the typical stamp duty rate in Australia?
   As of 2026, rates vary from 3% to 5% depending on the state or territory.
5. How can Esteb and Co help with my home loan?
   With access to 83+ lenders, Esteb and Co can assist you in finding a suitable lender and navigating the home loan process efficiently.
6. Is it better to pay stamp duty upfront or include it in the loan?
   This depends on your financial situation. Paying upfront avoids interest costs on the duty, but including it in the loan reduces initial cash outlay.