01 Jun 2022

Can I use a loan to pay stamp duty?

Loans and Stamp Duty

As tempting as it is to use a loan to pay stamp duty, it is not always allowed. In fact, you have to pay your stamp duty before the home becomes yours and is signed in the lending agreement.

Stamp duty is a government tax and fee that new home buyers need to pay to their local governments. The money is important and widely distributed to the rest of the region.

Stamp duty can be expensive, though, especially if you are not paying close attention to the percentage it costs! Before you decide to buy a home, it is best to use an online stamp duty calculator to get an estimate based on your location and the property value.

There are a few options if you need to take a loan out to pay for an outstanding stamp duty fine. However, most lenders will not approve this for a reason, and it is better to save and use money from the deposit. 

Loans and Stamp Duty Conclusion

Overall, using a loan when you need to pay for a stamp duty after buying a home is frowned upon. Although it is possible to apply for a personal loan, the interest rates are painfully high, and there is no guarantee that the lenders will approve the request. Also, it is not possible to place your stamp duty on top of your mortgage since it is a payment made directly to your state government. Mortgage House lenders and specialists can help you save and budget for your estimated stamp duty.

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