Finance, Stamp Duty & First Home Queries

Hi all,

First off, great forum. Looks to be a wealth of knowledge. I'm looking at purchasing my first PPOR and entering into the market.

I've gather a deposit and have assistance from a third party and considering options for capitalising LMI into the loan. We've been in discussions with the third party about utilising a limited guarantee, however, from discussions with our lendor it doesn't decrease with the loan amount – something which has off-put the third party (please tell me if this is wrong as I would love to confirm!). 

My main query is calculating exact repayments for our desired loan amount. In my understanding, stamp is payable upfront – within defined time from settlement. This amount is taken straight from the deposit amount upon doing calculations (see below). Is this correct?

I realise some lendors may capitalise stamp duty but only if there is releasable security on the side. Is anyone able to shed some light on what potential situations this may happen and confirm the calculations below are correct it would be greatly appreciated!

600k Loan /w LMI Calc

Deposit (and Gift) = 95,000

Stamp = 31,784

Less deposit = 95 – 31,784

Less legal    = 1500

= 61,716 DEPOSIT LEFT

New loan amount = 538,284 (Purchase – Remaining Deposit)

LVR = Loan amount / Purchase price = 89%

LMI % for 0.89 ratio = 1.75% of loan amt

LMI=9419(Round up to 10k)

LMI capitalised into new loan amount = 548,284

Repayments=533,484 @ 4.88% for 30 years Monthly IOnly = 2229.69

Repayments=533,484 @ 4.88% for 30 years Monthly P+I = 2903.23

650k LMI CALC

Deposit (and Gift) = 95,000

Stamp = 34,784

Less deposit = 95 – 31,784

= 60,216 DEPOSIT LEFT

New loan amount = 589784 (Purchase – Remaining Deposit)

LVR = Loan amount / Purchase price = 90%

LMI % for 90 ratio = 2.65% of loan amt

LMI=15,629

LMI capitalised into new loan amount = 605,413

Repayments=605,413 @ 4.88% for 30 years Monthly IOnly = 2462

Repayments=605,413 @ 4.88% for 30 years Monthly P+I = 3205

Notes:

4.88% is the rate negotiated with the lendor

LMI % was taken from the following page

Legal fees are excluded from the second example due to error (I'm aware)

Stamp duty taken from VIC SRO

Aware there is 40% stamp duty concession for FHO. Calculating worse case scenarios.