Settlement without stamp duty

We are looking to settle a property in April but the banks have said we need the stamp duty as we will go over LVR if they pay for it

My questions is can the house settle without the stamp duty?
Will settlement crash if I do not have the stamp duty ready in the bank or can the bank not finalise the loan without the stamp duty ready?
 
Yes, you need the funds for the stamp duty at settlement. If you don't have these funds, the settlement won't proceed.

The bank should have verified that you've got enough funds to cover all this before approving the loan.
 
We are looking to settle a property in April but the banks have said we need the stamp duty as we will go over LVR if they pay for it

My questions is can the house settle without the stamp duty?
Will settlement crash if I do not have the stamp duty ready in the bank or can the bank not finalise the loan without the stamp duty ready?

Stamp duty is govt charge. Until it is stamped the title wont transfer. Its called transfer duty for a reason. Penalties can be imposed if its not paid within XX days of the contract in some states.

Loan approval is normally not given until the bank can see all costs can be paid by either yourself or the loan. How did this occur ?

The bank may up the loan and LMI would be charged if the LVR goes up. What does your mortgage broker say ?
 
In NSW stamp duty can be paid up to 3 months after contracts entered into, however where there is are borrowings lenders won't allow settlement until duty has been paid.
 
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