Anyone new to purchasing a property with a mortgage can easily get confused with new terms. Such is the term called stamp duty that you need to know about when purchasing a house.

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So what is a stamp duty exactly? Stamp duty is a type of property tax that you have to pay when you purchase a piece of land.

It varies from one state to another, with different price bands. Now that’s clear enough for you. But many new to-be homeowners ask the question, “Can you put stamp duty on your mortgage?” And that’s what we will provide an answer for, so you should know what your next step should be.

Putting stamp duty on your mortgage

Yes, you can put stamp duty on your mortgage, but there are a few things to take note of. Stamp duty is a tax rate that you pay in full at the start or within the stated deadline.

When you don’t make the initial payment, you’re liable to any penalties including interest rate charges. That is also a reason many consider putting it on their mortgage.

But doing so result in an increased amount of loans, which is not a preferred option. When you do add it to your mortgage, you add the debt to your mortgage, increasing it significantly.

Consider other options

Stamp duty is a payable tax that you can’t avoid. But you can avail of other options including its waivers that provide somewhat relief when you can’t pay it in full amount.

Pensioners, divorcees, new homeowners, and others like such can take advantage of this. Or you can pay for it with your savings, personal financial loans, or other options.

This way you won’t add debts to your mortgage, and easily pay the repayments of the mortgage.