Stamp Duty Mortgage Calculator: Understanding the Home Purchase Tax
A financed home purchase includes two major financial components. You have the principal amount borrowed and the interest rate. Thereafter, a home buyer incurs fees and taxes, which are comparatively smaller amounts. All Australian jurisdictions levy a Stamp Duty tax on dutiable assets. You can utilise our Stamp Duty Mortgage Calculator to estimate your potential tax.
Stamp Duty Mortgage Calculator
Property value, location and use are three factors that determine a home’s duty amount. Property type is another. The tax formula takes into consideration if you are a first time buyer, too. To begin the estimate, enter the relevant information into the appropriate boxes. Then, the Stamp Duty Mortgage Calculator begins to process the information. You see the total estimated duty as the output. Then, you see it broken down into three parts, which are the registration, transfer and Stamp Duty fee.
In terms of financial literacy reasons, you should know how much tax you are incurring. The calculator gives you the opportunity to see this charge, which is beneficial.
For example, a $300,00 home incurs an estimated $300 duty tax for a first time home buyer. A previous buyer incurs a $9,300 duty tax on the same property.
What is the Stamp Duty?
The Stamp Duty is a tax assessed on the sale or transfer of personal and business assets. Partnership interests, intellectual property and goodwill are taxable assets. Land, buildings and leasehold improvements are others. Duties are a percentage of the asset’s market value sold or transferred. The percentage assessed is also based on a sliding scale and the asset’s location. Individuals who procure the asset pay the Stamp Duty.
Most duty payments are due within three months after the purchase. In some cases, payment is due within 30 days. Additional fees are assessed on late payments.
To pay the duty, complete the appropriate paperwork. Then, attach payment, and send it to the correct office.
Putting Everything Together
When you purchase a car, you pay taxes on the vehicle’s value, too. If the sale takes place at a dealership, the representatives often handle the tax paperwork. The dealer’s representatives send the appropriate paperwork and payment to the correct office. They take the taxes from your down payment or other financing. If you work with a lending representative to finance your home, find out if they handle the taxes. Otherwise, it is your responsibility to take care of the taxes. Ask the lender for instructions.
Stamp Duty Mortgage Calculator Conclusion
For more information about our Stamp Duty Mortgage Calculator and home purchase taxes, give us a call. Our Mortgage House team is ready to answer your questions.