Ensure you understand the fees and stamp duty associated with refinancing
There are a number of fees and costs associated with a home loan, whether that be when you first purchase a property, or if you decide to refinance. Stamp duty is one such example of these costs.
Many homeowners and those in the market for a property will know what stamp duty is. It’s the tax you pay when you first purchase a home to cover the cost of changing the title of the property and other ownership details
The amount you pay in stamp duty depends on the state or territory in which you live, the cost of the home and the type of property that you are buying. It’s important to note that you may qualify for an exemption due to your personal circumstances, so doing the right amount of investigation is a must.
Similar to when you first purchase a property, when you are refinancing your mortgage, stamp duty may also apply. However, there are some circumstances in which you can avoid it, including:
There are also some circumstances in which you may pay the stamp duty fee and then receive a refund from the lender.
With this in mind, it makes sense to do the right amount of research to determine if you will need to pay stamp duty. Especially, if your reason for refinancing is to save money.
As stamp duty is determined state by state, it’s a good idea to reach out to your state government body to determine if stamp duty (also known in some states and territories as ‘Transfer Duty’, ‘Conveyance Duty’ or just ‘Duty’) will be relevant for you.
For the most up-to-date information, visit your relevant government’s website below:
If you need help figuring out if stamp duty applies to the refinancing of your mortgage, reach out to your local Aussie Broker. They can crunch the numbers for you to ensure refinancing is the right move for you and assist with the paperwork.
Stamp duty may not be the only cost associated with refinancing your home loan. Depending on your personal circumstances, the following fees and charges may also exist on the back of refinancing your mortgage:
Before you decide to refinance, you’ll need to do the right amount of research. This will allow you to determine whether you’re going to save money, or lose money by reassessing the terms of your loan.
If you’re struggling to wrap your head around the refinancing process, an Aussie Broker can help assess your circumstances and guide you in the right direction.
Book a free appointment today to make sure your home loan is working hard for you.