Stamp duty adds $100 a month to mortgage payments
The cost of stamp duty has risen for Australian homebuyers.
The Housing Industry Association (HIA) has reported that stamp duty costs around the nation have risen in 2016, now adding $1,200 a year, or $100 a month, to the cost of the average Australian mortgage.
“The burden of stamp duty has grown much heavier during 2016, with strong dwelling price growth translating into disproportionately larger hikes in the stamp duty bill for homebuyers,” HIA senior economist Shane Garrett.
Garrett said the average stamp duty bill was now $19,975.
“This eats up home purchase deposits and forces families to take on much larger mortgages, with total loan repayments typically rising by around $36,000 over a 30-year term. The cost is even greater when the impact of the higher lenders mortgage insurance premiums is added on top,” Garrett said.
Garrett claimed that stamp duty acted as a barrier to employment mobility and retirement downsizing.
“A plan for its removal needs to be at the centre of a national housing affordability strategy. The large states’ coffers have benefitted heavily from the stamp duty windfall in recent years. Perhaps now is the time to offer some relief,” Garrett said.