Stamp Duty – Relief When Banks Say No (2026 Guide)

You're ready to purchase your dream home, but the costs are piling up faster than you anticipated. One of the largest upfront expenses you'll face is stamp duty, a significant cost that can sometimes feel like an insurmountable barrier. But what if you could include stamp duty in your home loan? Let's explore this possibility and see how you can manage this expense effectively.

Understanding Stamp Duty and Home Loans

Stamp duty is a government-imposed tax that buyers must pay when purchasing property in Australia. The amount varies depending on the property's value and the state or territory in which it is located. For many homebuyers, especially first-timers, stamp duty can be a daunting cost, often amounting to tens of thousands of dollars.

Including stamp duty in your home loan might seem like a convenient solution, allowing you to spread the cost over the life of the loan. However, this option depends on several factors and may not be available to everyone. Understanding the intricacies of this possibility and whether it aligns with your financial situation is crucial.

Current Market Information and Options

As of 2026, the Australian housing market remains competitive, with property prices stabilising after a period of rapid growth. Interest rates for home loans are currently ranging between 6.49% and 12%, depending on various factors such as the lender, loan type, and your credit profile.

Here's a quick look at how different states handle stamp duty:

While some lenders might allow you to include stamp duty in your home loan, this is not a universal practice. It typically requires you to have a substantial deposit, strong credit history, and often a higher loan-to-value ratio (LVR). Esteb and Co, with access to over 83 lenders, can assist in finding a lender who might offer such an option if it's feasible for your situation.

Practical Steps to Include Stamp Duty in Your Home Loan

1. Assess Your Financial Situation: Calculate your total borrowing capacity, including the cost of stamp duty, using online calculators or with the help of a mortgage broker.
2. Consult a Mortgage Broker: Engage a professional from Esteb and Co to explore the lenders who might offer this option. A broker can provide tailored advice based on your financial profile.
3. Check Loan Conditions: Ensure you meet the lender's criteria, which may include a higher deposit or specific income requirements.
4. Consider LMI: If your deposit is less than 20%, you may need to pay Lenders Mortgage Insurance (LMI), which could further impact your borrowing capacity.
5. Submit Your Application: Once you have chosen a suitable lender and verified that you meet their conditions, proceed with your loan application, ensuring all documentation is accurate and complete.

Tips and Considerations

• Long-term Costs: Including stamp duty in your home loan increases your principal, which means you'll pay more interest over the life of the loan.
• State Incentives: Investigate if you're eligible for any state-specific concessions or exemptions, especially if you're a first-time homebuyer.
• Future Flexibility: Consider how this decision might affect your future financial flexibility. A larger loan could impact your ability to refinance or access equity later.
• Professional Advice: Always seek advice from financial professionals to ensure your decision aligns with your long-term financial goals.

Frequently Asked Questions

1. Can everyone include stamp duty in their home loan?
   Not all lenders offer this option, and eligibility depends on factors like credit score, deposit size, and LVR.
2. How does including stamp duty affect my monthly repayments?
   Your repayments will increase as you're borrowing more, and you'll also pay more interest over the life of the loan.
3. Are there any alternatives to including stamp duty in a home loan?
   Yes, using savings, government grants, or negotiating a lower purchase price can help manage stamp duty costs.
4. Does including stamp duty in the loan affect my LVR?
   Yes, it increases your LVR, which may lead to higher interest rates or LMI requirements.
5. What are the risks of including stamp duty in my home loan?
   Increased debt, higher long-term costs, and potential difficulties in refinancing are key risks.
6. Can Esteb and Co help me find a lender for this option?
   Yes, with access to 83+ lenders, Esteb and Co can assist in finding a lender that suits your needs.
7. What factors influence stamp duty amounts?
   Property value, location, and whether you're a first-time buyer can all impact the amount of stamp duty payable.