How can I avoid paying the foreigner stamp duty surcharge?

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Mason
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Joined: Tue Jan 22, 2019 11:50 am

How can I avoid paying the foreigner stamp duty surcharge?

Postby Mason » Tue Jan 22, 2019 11:52 am

As a New Zealander working in Australia for the last five years, I thought it was time for me to buy a house here, so I’ve been looking at a few properties, though nothing concrete yet. Now, is there a way I can avoid paying the foreigner stamp duty surcharge?

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Otto Dargan
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Re: How can I avoid paying the foreigner stamp duty surcharge?

Postby Otto Dargan » Tue Jan 22, 2019 12:54 pm

Hello Mason. Welcome to the forums.

The good news is New Zealand citizens arriving in Australia are automatically granted a visa known as a Special Category Visa (Subclass 444).

This visa exempts its holders from having to pay the stamp duty surcharge which applies in NSW, VIC, QLD, and WA but be careful.
For instance, in New South Wales you need to be in the country for at least 200 days to be eligible for exemption from paying stamp duty surcharge.

You can calculate how much surcharge you will be saving via our stamp duty calculator here.

For example, for a $700,000 property in NSW, a foreigner can expect to pay around $82,990 in stamp duty.

For an Australian citizen or a permanent resident, the stamp duty will be around $10,490.

Another added benefit is that New Zealand citizens living in Australia can buy any type of real estate that they desire.

It doesn’t necessarily have to be a residential property, it could also be an investment property.

Please call us on 1300 889 743 (+61 2 9194 1700 if overseas) or complete our free assessment form to discover if you qualify for a New Zealand citizen home loan.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Mason
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Joined: Tue Jan 22, 2019 11:50 am

Re: How can I avoid paying the foreigner stamp duty surcharge?

Postby Mason » Tue Jan 22, 2019 2:04 pm

That’s great. This will be my first house here. Do I also qualify for the first home owners grant (FHOG)?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How can I avoid paying the foreigner stamp duty surcharge?

Postby Otto Dargan » Tue Jan 22, 2019 3:52 pm

Hi Mason,

The first home owners grant (FHOG) is available through select states to permanent residents as if they are normal Australian citizens.

Because New Zealand citizens living in Australia are, for all intents and purposes, considered to be permanent residents of Australia, they are eligible for FHOG.

You need to make sure that you are in the country at the time of signing the contract and settlement.

Again, we recommend checking your state's equivalent Office of State Revenue (OSR) website to stay up-to-date with any policy changes.

Speak to one of our experienced mortgage brokers directly by calling us on 1300 889 743 or you can fill in our free assessment form.

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

Mason
Posts: 3
Joined: Tue Jan 22, 2019 11:50 am

Re: How can I avoid paying the foreigner stamp duty surcharge?

Postby Mason » Tue Jan 22, 2019 4:50 pm

One last thing, how do I make sure I get the best interest rate possible as a Kiwi?

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Otto Dargan
Mortgage Specialist
Posts: 7585
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How can I avoid paying the foreigner stamp duty surcharge?

Postby Otto Dargan » Tue Jan 22, 2019 6:39 pm

Hi Mason,

We are specialist mortgage brokers who specialise in NZ citizen home loans. Moreover, we have a panel of 40 lenders to choose from.

To find out the best interest rates available for you, give us a call at 1300 889 743 or you can fill in our free assessment form so one of our brokers can get in touch with you.

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


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