Tasmanian first-home buyer faces $25,000 extra cost as stamp duty exemption deadline looms

Tasmanian first-home buyer Heith Mineur is facing a significant financial hurdle as the state's stamp duty exemption is set to expire on June 30. The 33-year-old is purchasing his first home with the help of the MyHome shared equity scheme, but lengthy processing times have jeopardized his eligibility for the incentive.

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The stamp duty relief is from the settlement date, which is sort of an unknown when you sign the contract.

Mineur will now likely have to pay an extra $25,000 in stamp duty because the exemption is tied to the settlement date, not the contract signing date. "All my money is already set aside for the house purchase," he said, expressing anxiety about finding the additional funds. "I'm not going to be able to come up with nearly $25,000 just from nowhere."

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I'm not going to be able to come up with nearly $25,000 just from nowhere.

While Mineur's partnered bank, Bank of Us, has agreed to finance the stamp duty, it adds approximately $35 to his weekly mortgage payments over the life of the loan. His real estate agent, Ant Manton, noted that MyHome scheme settlements can take a minimum of 120 days, far exceeding the standard 60-day contract period.

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A standard [home] contract is maximum 60 days. A MyHome scheme … you're looking at 120 days from signing to settlement, at a minimum.

Following a query from ABC News, Premier Jeremy Rockliff stated he would review Mr. Mineur's situation, particularly if paperwork was completed promptly but delays occurred afterward. Mortgage broker Chris Antypas highlighted that many customers are currently in shock, having not anticipated this outcome, emphasizing the stamp duty exemption's crucial role for first-time buyers.

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If there's an account where the paperwork has been done, and processes have taken too long since that point, then of course, in the interest of fairness, that should absolutely be accounted for and we will look at that.