First Home Buyer Stamp Duty
As a first home buyer or you may already be aware of how much deposit you need for your loan, and you have researched all of the costs for your building inspections and conveyancing fees. However another important cost you need to consider when you buy your first home is the duty. Stamp duty is charged by the government on the purchase of your new home whether you are buying an established home or building a home from a planned on your chosen block of land. Find out more now about how Stamp duty is calculated on your first time, and how it differs from state to state.
What is Stamp Duty?
Rather than shrugging off Stamp duty as just another fee you have to pay to get into your first home, as you find out more about how and why Stamp duty is applied to your purchase, you can more easily planned for this expense and even find ways around it. You need to know that Stamp duty:
- Is paid on a range of acquisitions. Stamp duty is paid to the government for a number of purchasers or transfers, it is not just first home buyers or those navigating the property market who pay stamp duty. That duty is also calculated on the sale of cars, businesses and even insurance policies, and the government then put that money towards public services such as education, health, and law and order.
- You will pay stamp duty on your loan. This may be the first place you encounter Stamp duty and the amount you need to pay on your loan is based on a percentage of the loan amount. You can use one of the many Stamp duty calculators available to give you an idea of the percentage of stamp duty which will be charged on your first home loan, but be aware that using an online calculator may not give you the full picture.
- You will pay stamp duty on the purchase of your first home. Stamp duty you pay on your property can be much higher than that you have paid on your loan because it too is calculated as a percentage of the value, and the value of your home is likely to be higher than the value of your loan. If you are building your first home you can avoid some of the Stamp duty because these government charges are only applied to the purchase of your block of land, and did not apply again when you pay a builder to build your home.
- It can vary significantly. Stamp duty varies from state to state and is tiered on the value of your property, there is often a flat charge for your property value bracket, plus a percentage of that value is charged.
Featured Loans to Avoid Stamp Duty
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 ANZ Breakfree Home Loan Package ($150,000 – $249,999) |
Enjoy up to 0.70% off the ANZ standard rate) | 6.55% | $ 0 / $375 | 80% | $150,000 / $249,999 |
 
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ANZ Simplicity Plus Basic Home Loan |
Minimise your repayments with up to 10 years interest only feature | 6.35% | 6.40% | $0 / $ 0 | 80% | $50,000 / $1,000,000 |
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 NAB National Choice Package ($100,000 to $249,999) |
A competitive rate from one of the big four | 6.39% | 6.75% | $0 / $395 | 95% | $150,000 / $249,999 |
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The Keystart First Home Buyer Scheme In Western Australia
Keystart is an initiative of the Western Australian government and they are all about ensuring affordable housing at the time of application and purchase, as well is making sure you have all the help you need to manage and maintain your home loan. The key start first home buyer scheme includes:
- Help for all homebuyers. While Keystart can help first home buyers in Western Australia more easily get into their first property, Keystart also offers a range of services for second, third or more, homebuyers.
- You will be eligible to apply for the first home buyer scheme. All applications made through Keystart are eligible for the first home buyer scheme and the grant of $7000. Key start can organise the entire application for you.
- Refinance your loan until you can more easily afford the repayments. You can add a key start safety net to your first home loan if you can’t meet your repayments, you can also refinance into a restart loan which makes your repayments more affordable until you have more funds available if you have lost your job example.
- Keystart helps all buyers get into their dream home. Keystone has a range of products to help first home buyers who are disabled, aboriginal, coming from a housing trust house or rental property, to make buying your first home as easy as possible.
First Home Buyers Stamp Duty In New South Wales
New South Wales is an example of how much the Stamp duty for first home buyers can differ between the states. If you are a first-time buyer in New South Wales:
- You can avoid stamp duty on homes valued up to $500,000. If your first home is valued less than $500,000, or the vacant land you are buying to build your first home is less than $300,000 you may be eligible to not pay any stamp duty at all on the property. For first homes costing between $500,000 and $600,000, and four blocks of land valued between $300,000 and $450,000 there are also tiered concessions available for first-time buyers.
- The New South Wales new home buyers supplement is in place until June 2010. If you are buying an existing home or building a new home you may be eligible for the $3000 new home buyers supplement if you sign a contract between 11 November 2008 and 30 June 2010.
Now that you know more about the Stamp duty which can be charged to first-time buyers, you also know how to budget, calculate and in some cases avoid those costs in the pursuit of your new home. Therefore view our comparison tables here to find out more about the best first home buyer loans which can be just as affordable.
Related posts:
- Stamp Duty Western Australia
- Property Stamp Duty Rates
- Government Stamp Duty
- Stamp Duty Guide
- Stamp Duty Exemptions and Rebates
- Stamp Duty Exemptions
- Stamp Duty Rates
- Stamp Duty Calculator
- Stamp Duty Calculator TAS
- Stamp Duty Calculator QLD
Top Home Loans
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