Borrowing Funds for Stamp Duty and Costs

I have many buyers ask me this question, i.e: can I borrow funds to cover stamp duty and costs. In many instances clients may have saved up a deposit but may still require a significant amount of funds to cover stamp duty and fees.

The general answer is no. There are some lenders that will allow this, but will generally only allow this if you are presenting a strong deal to them. For example you would need to have little other debt and a good income, with plenty of borrowing capacity.

Most lenders will not let you add these costs to your mortgage, but some may allow you to fund this through a personal loan or credit card. Generally you would source these funds separately, but there are some lenders that will advance you these funds as part of your loan application. One thing to bear in mind is that funding these costs through a personal loan or credit card can be expensive in interest rates and servicing. Most short term debt has to be serviced over shorter loan terms than your home loan, making monthly repayments high.  

If you feel this may be an option for you feel free to contact your Lime Mortgage Broker to see if you will qualify and to provide you with detailed estimates for your scenario.

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