Stamp Duty Loan – Relief When Budgets Tighten (2026)

In the journey towards homeownership, managing upfront costs like stamp duty can be a significant hurdle. Many potential homeowners find themselves asking: "Can I add stamp duty to my loan?" Understanding how stamp duty works and exploring your financing options can make a world of difference in achieving your property goals without overextending your budget.

Understanding Stamp Duty and Home Loans

Stamp duty is a government tax levied on certain transactions, including property purchases. In Australia, the amount varies depending on the state or territory, property value, and whether you're a first-time buyer. In 2026, stamp duty can range from a few thousand dollars to tens of thousands, depending on these factors. It's a considerable expense that often catches buyers off guard.

When it comes to home loans, many wonder if this expense can be rolled into their mortgage. The short answer is: it depends. Some lenders may allow it, but there are specific conditions and implications to consider. Generally, adding stamp duty to your loan increases the total borrowed amount, which means higher repayments and more interest over the loan's life.

Rates, Requirements, and Options

As of 2026, interest rates in Australia for home loans are typically between 6.49% and 12%, depending on the lender and the borrower's credit profile. When considering adding stamp duty to your loan, it's crucial to weigh these rates against your financial situation.

Eligibility to add stamp duty to your loan often depends on several criteria:

• Your credit score and history
• The loan-to-value ratio (LVR) of the property
• Your income stability and debt-to-income ratio
• The policies of your chosen lender

Here's a comparison of different options available:

With Esteb and Co's panel of 83+ lenders, there might be flexible options available that align with your financial needs.

Steps to Adding Stamp Duty to Your Loan

Here is a step-by-step guide to help you navigate adding stamp duty to your loan:

1. Assess Your Financial Situation: Review your budget and savings to determine if you can cover stamp duty upfront.
2. Check Lender Policies: Consult with your mortgage broker or lender to see if adding stamp duty to your loan is an option.
3. Understand the Costs: Calculate how adding stamp duty will affect your loan amount, interest, and monthly repayments.
4. Compare Lenders: Use Esteb and Co's resources to compare offers from over 83 lenders to find the best terms.
5. Apply for the Loan: Once you've selected a suitable lender, proceed with the loan application, ensuring all documents are prepared.
6. Consult a Financial Advisor: Before making a final decision, consulting with a financial advisor can provide additional insights tailored to your situation.

Expert Tips and Considerations

When contemplating whether to add stamp duty to your loan, consider these expert tips:

• Long-term Costs: Understand that while it may ease short-term financial pressure, it increases the overall cost of your loan.
• Loan Features: Look for loans with features like offset accounts or flexible repayment options to help manage costs.
• Negotiate: Don't hesitate to negotiate with lenders. Sometimes, they can offer better rates or terms if you ask.
• First-Time Buyer Concessions: Check if you qualify for any first-time buyer concessions or grants that could reduce stamp duty costs.

Frequently Asked Questions

1. Can I always add stamp duty to my home loan?
Not always. It depends on the lender's policies and your financial profile.

2. How does adding stamp duty affect my repayments?
It increases your total loan amount, resulting in higher monthly repayments and more interest over time.

3. Are there grants available to help with stamp duty?
Yes, some states offer grants or concessions for first-time buyers that can reduce stamp duty costs.

4. Will adding stamp duty to my loan affect my credit score?
It can, as it increases your total debt, potentially impacting your credit score if not managed well.

5. Can I negotiate stamp duty with the seller?
Stamp duty is a government tax, so it cannot be negotiated with the seller, but you can negotiate other aspects of the purchase to manage costs.

6. Does adding stamp duty to my loan affect my loan-to-value ratio?
Yes, it does, as it increases the overall amount borrowed, potentially impacting your LVR.

7. How do I find the best lender for my situation?
Using a mortgage broker like Esteb and Co can help you compare options from over 83 lenders, ensuring you find a solution that fits your needs.