Stamp duty is a payment in the long list of things that a homeowner must pay when getting a mortgage. The term refers to an amount of money that is charged on various transactions such as the sale of real estate and other things. While Stamp Duty was charged under the Stamps Act of 1958, that was replaced in 2000 by the Duties Act, which charges ‘duty’ on transactions. Same thing; different name - but most people have kept the name Stamp Duty.

Stamp duty charged on real estate is calculated on either the purchase price or the market value of the property - whichever is greatest. If the property is valued at more than $870,000 then the rate is 5.5% of the price. Cheaper properties attract stamp duty of from 1.4% for $20,000, but the scale rises with the price.

To calculate the stamp duty that you are likely to be charged you can use an online calculator, but remember that this is only a guide and may not be accurate. However, you will gain some idea of what you will need to pay. It is always best to consult a professional about stamp duty when you need to know specifics.

    Posted in Mortgage from Investor on 3. Feb. 2008