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Borrow stamp duty

Discussion in 'Property Finance' started by bonanzawealth, 15th Dec, 2015.

  1. bonanzawealth

    bonanzawealth Well-Known Member

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    I only have 5% to put down and not enough cash for stamp duty. Servicing is not an issue. Is there any lender that allows me to borrow the stamp duty cost? I read in this forum quite a while back if I'm not mistaken it was Adelaide bank? Is that still the case?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    No there is not. Unless you have other property as security.

    Adelaide Bank can provide a $20k credit card, but I don't think this will be available until after settlement.
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    You'll need equity in some property to fund that and right now BoQ are the only ones who'll help you with a 95% lend if you're hoping to fully cap LMI. And that's only for PPOR purchases.

    Unless there's some equity in a property you already own, you'll have to keep saving a bit longer.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    One of the limitations in the amount you can borrow is determined by the LVR, or percentage of the security value. In most cases, lenders will allow you to borrow up to 90% of the property value, in a few cases 95%. One or two lenders will also add the LMI on top of that if it's a PPOR.

    Everything else, you need to contribute.

    That means for an IP, you need to put in at least a 5% deposit, plus the stamp duty, plus the LMI. As a very rough guide, this comes to at least 13% of the purchase price.

    Unless you've got other property you can borrow against, you can't borrow any more.
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Nope.

    Unless you've got a guarantor who's willing to put up their property or you have another property with equity.

    Cheers

    Jamie
     
  6. tobe

    tobe Well-Known Member

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    There are a couple of lenders who specifically allow you to borrow the costs as a personal loan (either with that or another lender) however most lenders don't.
     
  7. JohnPropChat

    JohnPropChat Well-Known Member

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    If servicing is not an issue, get an unsecured line of credit like Westpac Flexi.

    $20k unsecured debt can reduce your borrowing capacity by $50k(depends on the lender).
     
  8. tobe

    tobe Well-Known Member

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    Also, many personal loan lenders preclude 'house deposit' as a purpose for their personal loans, so do your home work first.