Got your heart set on a new property but need an estimate of how much you may need to pay for stamp duty in the NT? That’s where our Northern Territory stamp duty calculator can help you out.
What is stamp duty?
Stamp duty is a tax imposed by all Australian state and territory governments on various transactions, including car registrations and transfers, insurance policies, and property. Stamp duty is used by these governments for the same purposes as other taxes - namely towards funding infrastructure and services.
In the Northern Territory, stamp duty can make up a significant portion of the cost of purchasing a property, so buyers can make it easy for themselves by calculating just how much they’ll need to cover stamp duty and incorporating it into their property saving plan along with the cost of a home loan deposit.
When do I have to pay NT stamp duty?
Many, but not all, buyers in the Northern Territory will need to pay stamp duty when they purchase a property - the general rule being that if you’re not a first home buyer, senior or pensioner you’ll probably need to pay it. Stamp duty in the Northern Territory is based on the unique formula below, but if you’d like to avoid working it out yourself, our calculator is there to help you.
D = (0.0657144 x V²) + 15V
D = the stamp duty ($)
V = the purchase price
Bear in mind that the Northern Territory government works out stamp duty differently to other state and territory governments in Australia, so if you’re purchasing a property in a different state you’ll need to use their own stamp duty formula. Luckily Mozo’s Stamp Duty Calculator also works for other states, so be sure to check out the relevant calculators at these links.
Are there any stamp duty exemptions or concessions in the NT?
The Northern Territory offers a number of concessions and exemptions for the following buyers and situations:
First home buyers
As in other areas of Australia, first home buyers in the Northern Territory may be eligible for significant discounts on their stamp duty. These discounts apply to the purchase of established homes, and will depend on the value of the home itself:
- Properties below $500,000: For purchases under this amount, first home buyers will be totally exempt from having to pay stamp duty, though they will still need to pay both Mortgage Registration ($142) and Transfer ($142) fees.
- Properties between $500,001 and $650,000: For purchases in this bracket, first home buyers will get a discount of $23,298.60 off the standard stamp duty.
- Properties above $650,000: For properties with a value of $650,000.0 and higher, the standard stamp duty fee applies.
It’s also worth noting that, depending on the situation, first home buyers in the Northern Territory have a number of other incentives available to them. These include the First Home Buyers Grant (up to $26,000), the Home Renovation Grant (up to $10,000) and the Household Goods Grant (up to $2,000). For more information and details on these grants, make sure you visit the NT Government’s first home buyer hub.
Seniors and pensioners
Eligible pensioners, seniors and carers in the Northern Territory will also be able to receive a significant stamp duty concession of up to $10,000 on properties valued up to $750,000 and for land valued up to $385,000.
Principal Place of Residence Rebate (PPRR)
Wanting to buy a brand new home in the NT, or a piece of land with the intention of building a new home on it? Well you may be eligible for the Principal Place of Residence Rebate worth up to $7,000 off your stamp duty.
To be eligible you must purchase a home in the Northern Territory that’s never been lived in or, if you’re purchasing a block of land, you must build a new home on it within five years, and occupy it within a year of construction being completed.
How do I pay stamp duty in the NT?
According to the Northern Territory government website, stamp duty is generally payable “within 60 days of entering into the transaction or at settlement, whichever is earlier.”
When you do go to pay for your stamp duty with the Territory Revenue Office (TRO), you’ll be able to choose between making your payment via electronic funds transfer (EFT), cheque or money order in the post, or in person with cash or cheque.
What other home loan costs are there aside from stamp duty?
Apart from stamp duty and government fees, prospective buyers should also be aware of the other, often unexpected, costs that are are associated with taking out a home loan.
Home loans generally come with a number of standard costs such as upfront fees, ongoing service fees and discharge fees, so it’s always worth shopping around among different mortgage providers as some will charge lower fees or even no fees at all.
A good way to this is by comparing the comparison rate on different home loans. Taking into account the headline rate as well as the fees charged for a specific loan, the comparison rate can often provide a clearer picture of what you’ll really be paying for your home loan.
How can I save on my home loan?
In the same way you would compare a range of properties to find the right fit, comparing a range of home loans could be important in order for you to grab the home loan features you want for the right price.
While the difference between home loan rates may seem small, they can certainly add up over time, so finding a home loan that is even 50 basis points cheaper could mean thousands of dollars saved over the life of your loan.
Let’s have a look at an example. Say you were looking at a property in the NT with a value of $600,000. You’ve saved up a 20% deposit to avoid having to pay LMI, so the loan you’re wanting to take out works out at roughly $480,000. If you opted for a provider offering a home loan rate of 3.75%, making principal and interest repayments, the Mozo home loan repayments calculator reveals you would end up paying $260,349 in interest over a 25 year period.
If you instead decided to go for a home loan with an interest rate of 4.25%, you would end up paying $300,103 in interest over the same period - a whopping $39,754 difference.
It just goes to show how much you could save by simply comparing interest rates, so do yourself (and your future bank balance) a favour by heading over to Mozo’s home loan comparison tables to begin your search for a better value home loan today.