Does having a larger deposit mean I can reduce stamp duty?

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Zanele
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Does having a larger deposit mean I can reduce stamp duty?

Postby Zanele » Tue Oct 22, 2019 6:27 pm

I am currently on TSS 482 Visa (4 years and 8 months) in Victoria. I am from South Africa and would like to buy a home. I am prepared to save a 30% deposit for a $1 million property to avoid paying high stamp duty. I’m earning an annual income of $350,000. Does having a larger deposit mean I can reduce stamp duty?

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Otto Dargan
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Re: Does having a larger deposit mean I can reduce stamp duty?

Postby Otto Dargan » Tue Oct 22, 2019 6:41 pm

Hello Zanele. Welcome to the forums.

No, the amount of stamp duty you pay is not dependent on the size of your deposit. The amount of stamp duty paid depends on the value of your property, which state or territory you are buying your property and type of property you buy.

You can use our stamp duty calculator to find out how much you will need to pay.

However, having a deposit of more than 20% means that you save thousands by not having to pay Lenders Mortgage Insurance, but you still have to get approval from the Foreign Investment Review Board. For a property worth $1 million, the FIRB fees will be $5,700.

We specialise in temporary resident home loans.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Zanele
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Joined: Tue Oct 22, 2019 6:23 pm

Re: Does having a larger deposit mean I can reduce stamp duty?

Postby Zanele » Tue Oct 22, 2019 6:55 pm

Thanks for the information. How much can I borrow from the bank? Does it have to be less than 80% of the property value?

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Otto Dargan
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Re: Does having a larger deposit mean I can reduce stamp duty?

Postby Otto Dargan » Tue Oct 22, 2019 7:03 pm

Hi Zanele,

Under TSS Visa, the amount you can borrow depends on which stream you are working in:
  • For a 4 years stream (Medium-term or MLTSSL), you can borrow up to 90% of the property value with some of our lenders.
  • For 1 - 2 years (Short-term of STSOL) you can borrow up to 80% of the property value.
  • If you’re married or in a de facto relationship with an Australian or permanent resident, then you can borrow up to 95% of the property value.
  • If your visa is close to expiration, then you will only get limited lenders. You must have at least 12 months remaining on your visa.
Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Zanele
Posts: 3
Joined: Tue Oct 22, 2019 6:23 pm

Re: Does having a larger deposit mean I can reduce stamp duty?

Postby Zanele » Tue Oct 22, 2019 7:27 pm

What interest rates am I looking at? While banks charge me a high-interest rate because of my visa?

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Otto Dargan
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Location: Sydney, Australia
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Re: Does having a larger deposit mean I can reduce stamp duty?

Postby Otto Dargan » Tue Oct 22, 2019 7:30 pm

Hi Zanele,

Not necessarily!

The amount of interest charged does not depend on your visa. If you can show that you’re a strong borrower, you might get the same interest rates as an Australian citizen. To increase your chances of approval and getting competitive interest rates, you should:
  • Have at least 12 months remaining on your visa before applying.
  • Have most of your savings in Australia.
  • Have a stable job in a sought after profession.
  • Have a clean credit history.
  • Save a larger deposit.
Give us a call on 1300 889 743 or fill in our free assessment form to get a competitive interest rate on your mortgage.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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