4 ms·
Is that tax added into the mortgage as a lump sum (meaning you pay interest on it for the life of the loan) or is it added to the payment each month?
by pc86 6y ago
Is that tax added into the mortgage as a lump sum (meaning you pay interest on it for the life of the loan) or is it added to the payment each month?
- dbetteridge 6y agoNot sure how Belgiums works, but Australias stamp duty is a lump sum you pay alongside your deposit when buying the property. Correction: I double checked and it looks like it can be added to your mortgage, which isn't as bad up front.
- pc86 6y agoThat's rough, although paying it once and being done with it is certainly preferable (long term, if you have the funds) to wrapping it into the mortgage and paying 3-4x over the life of the loan.
- rileymat2 6y agoFunctionally it is wrapped into the loan because without that, you would have had more down payment.
- gassit 6y agoThat is not quite correct. Stamp duty is payable at the time of settlement but it is normally added as a lump sum to the mortgage.
- dbetteridge 6y agoI've added an addendum! I must have misremembered that bit of info. Thanks!
- elric 6y agoLump sum in Belgium. You might be able to get away with tacking it on to the mortgage, but only if you have additional collateral (another home, rich parents, whatever). Or maybe if it's a really cheap house.