Fee’s and Stamp Duty When Refinancing

When you take out a loan to buy a property, whether at the time of purchase or when refinancing, there are a number of fees and costs associated with that loan. Stamp duty is one such example.

Homeowners and those in the market for a property are likely familiar with stamp duty, which is a tax levied on the purchase of a home to cover the costs of changing the title and other ownership details

Stamp duty is a tax levied on people who purchase property in Australia, based on the state or territory in which they live and the cost of their purchase. Many people may be eligible for an exemption from stamp duty due to personal circumstances, so it is important that you do your research thoroughly.

When you first purchase a property, there is often a duty to pay stamp duty on the transaction. When you refinance your mortgage, stamp duty may also apply.

Although there are some circumstances in which you can avoid it, including:

• If the borrower and amount of the loan do not change if you refinance with the same lender.
• In some cases, you may pay the stamp duty fee and then receive a refund from the lender.

In light of this, it makes sense to do the appropriate amount of research to determine whether you will need to pay stamp duty when refinancing. This is especially true if your reason for refinancing is to save money.

Stamp duty is determined state by state, and you should contact your state government body to learn more.

To get the most up-to-date information, visit the following government websites below:

• NSW Stamp Duty Information
• QLD Stamp Duty Information
• VIC Stamp Duty Information
• SA Stamp Duty Information
• TAS Stamp Duty Information
• WA Stamp Duty Information
• ACT Stamp Duty Information
• NT Stamp Duty Information

For help determining whether stamp duty applies to the refinancing of your mortgage, contact your local My LMI Group broker. They can crunch the numbers for you and ensure that refinancing is the right move for you.

Other refinancing fees and costs

In addition to stamp duty, there may be other fees and charges associated with refinancing your home loan:

• A prepayment penalty from your current lender
• An application fee is charged for making a new loan application.
• Valuation fee for the property used as collateral
• Land registration fees to remove the old mortgage and replace it with the new home loan
• The cost of land registration fees to remove the old mortgage and replace it with the new home loan.
• Some institutions charge ongoing fees for their services.
• Your old home lender may charge a break fee to pay off your mortgage.
• When considering refinancing, it is important to do the necessary research first. This will allow you to determine whether you will save money by reassessing the terms of your loan.

An My LMI Group broker can help you assess your circumstances and guide you through the refinancing process.

To ensure your home loan is working hard for you, schedule a free appointment today.