What is Stamp Duty?

 Stamp duty is a mandatory tax that the state and territory governments levy on a home buyer, whenever they purchase the property. The payment is due by an arbitrary date, depending on the state and territory that property is purchased within. In NSW, the stamp duty tax is mandated to pay within three months after settlement of the purchase. However, the duration may change depending on the region. 

Aside from home or property, stamp duty is also required to pay for things like:

• Insurance policies

• Mortgage

• Motor vehicle registration and transfer

• While purchasing agreement

• While transferring property  and assets like shares or business 

The paying amount keeps on varying depending on the type and value of your transaction.

How to Calculate Stamp duty?

Stamp duty fees vary depending on the state you are purchasing in. Each region has its own sliding scale subject to its calculations which eventually conclude how much money is owed for your property purchase based on what it's worth at the time. Aside from that, the cost of the stamp can also help you determine your property's dutiable value which can be found at what price you paid for it and how much it would auction for in today's market. 

The stamp duty is calculated by applying a sliding scale of taxation with a percentage increasing according to the value of your property. The general rule here is, the cheaper your property gets in value than the less tax you'll pay on that specific piece of land and home. Most states follow up the similar process so we recommend doing research from your end beforehand! 

However, in some cases or circumstances, you may get the advantage to get a concession or exemption from paying the tax. 

Use our stamp duty calculator NSW to get an exact sketch of your tax or how much you will have to pay. If you're a first home buyer and need some help then, we can do it! From finding the best possible mortgage in Sydney to assisting to get the government benefits our mortgage brokers of Sydney are highly skilled and experienced who are aware of all metrics which can favor you. To get in touch with us, call on 9907 4624 or visit us at  https://freshwaterfs.com.au/

5 Tips For First Time Home Buyers

The process of buying your first ever home can be daunting; understanding the process, real estate terminology and property pricing are some of the factors which contribute to making it confusing and difficult. But there also exist plenty of things that first home buyers can do to make an informed decision and improve their chances of buying their dream home.

Set your budget

First, nail down your preferences and what exactly you want, once you have that, then the next step is to narrow down a rough sketch of how much you can afford. So you don't end up falling in love with a house you can't afford!

Improve your credit score

When you apply for a mortgage the lenders will look at your credit history to get an analysis of how you have managed your past borrowing. This information is a real game-changer as, based on your credit report lenders decide if you're a potential borrower or not. 

So before you apply for a mortgage make sure to improve your credit score. For that, you can close all the credit accounts that are no longer in use, pay all your bills on time, and keep your credit card balance as low as possible. 

Look into government benefits

Being a first home buyer you may get qualified for the government's help which aims to assist first-time buyers. There are several schemes available so do your homework and try to get those benefits. 

You can also take the help of your mortgage broker of Sydney as they can assist you to avail yourself of as many benefits you're eligible for. 

Scrape together a deposit 

When you buy a property, your ability to purchase the appropriate mortgage is largely influenced by how much money you can put down. The larger the deposit you will be able to make upfront, the easier things will get for you. So, aim for at least 20% of your property's value to avoid having to purchase a lender's mortgage insurance. 

Find a trustworthy mortgage broker 

Having a good mortgage broker in Sydney by your side itself releases half of the burden from your shoulders. Because a proficient mortgage broker will guide you through the bewildering maze of various available options but also guide you to make your credit score more presentable. On top of that, they also help you with the paperwork which saves you from the headache. 

If you're a first home buyer and are still confused about the process then worry! Get the help of our best mortgage broker in Sydney to turn your dream into reality. To set up your first meeting with our brokers you can contact us on  9907 4624 or visit us at  https://freshwaterfs.com.au/