If you're ready to purchase your first home in WA, or you’re just doing a bit of research online, it's important to understand what government support is available. After all, you could end up saving some of your hard-earned dollar bills!
One way you could do that is by taking advantage of the WA First Home Owner Grant (FHOG) which offers first home buyers a payment of up to $10,000 towards their property purchase.
Sounds like a sweet deal? Here’s everything you need to know about how it works and who is eligible.
How does the WA First Home Owner Grant work?
The WA FHOG is one-off payment worth $10,000 aimed to assist first home owners buying or building a new residential home.
It is not available for established homes or for renovations to an existing home.
A home that has been substantially renovated - significant structural renovations to most of the property - may be considered for the grant.
Keep in mind only one grant is payable per eligible transaction, so two people purchasing a house together will only be eligible for one grant payment.
The WA FHOG is not means-tested so your income won’t affect your eligibility.
Can the FHOG be used as a deposit?
Yes, you can use the FHOG as part of your deposit. However, it’s unlikely to be enough to cover an entire deposit on its own - you will need to be diligent and save up a pot of your own.
To avoid paying Lenders Mortgage Insurance (LMI), borrowers generally need to save up a 20% deposit. Given the current Perth median property value is nudging $600,000, a deposit is near $120,000. So, the WA FHOG doesn’t even come close to this.
And while some lenders may allow you to buy a property with a 5% deposit, you could end up saving tens of thousands of dollars on LMI if you have a little patience.
Price limits for the WA FHOG
There are price limits on what you can pay for your first home to be eligible for the FHOG in WA. If the property or land is:
- South of the 26th parallel, the price limit is $750,000. All Perth metropolitan areas are south of the 26th parallel.
- North of the 26th parallel, the price limit is $1,000,000.
According to the Department of Finance, the total property value comes down to the nature of the transaction:
- For off the plan purchases or new homes, it is the greater of the consideration for the contract to purchase, or the unencumbered value.
- For contracts to build, it is the total of the consideration for the contract to build and the unencumbered value of the land.
- For an owner-builder, it is the total value of the home and land at the date the transaction is completed.
WA First Home Owner Grant eligibility
To qualify for the $10,000 WA FHOG, applicants must meet several eligibility requirements. The criteria is as follows:
- At least one applicant must be an Australian citizen or permanent resident
- Applicants must be over the age of 18
- Applicants must be buying their first home and have not previously owned a residential property in Australia.
- Applicants must not have received any other FHOG grants or stamp duty exemptions anywhere in Australia
- Applicants must reside in the property as their principal place of residence for a continuous period of at least six months, within 12 months of settlement or date of building completion
How to apply for the First Home Owner Grant in WA
There are two ways to apply for the WA FHOG - through an approved agent, or directly with RevenueWA.
If you're applying for a loan from a financial institution and your lender is an approved agent, they can process the application on your behalf. Contact your lender to find out if they are an approved agent.
If your lender is not an approved agent, then you'll have to apply directly with RevenueWA. Fill out the FHOG Application Form found on the RevenueWA website. Before you submit your application, make sure the bank details you have provided are correct as it may not be possible to get back funds made to the wrong bank account.
Everyone who will have a relevant interest (name appears on title certificate) in the home must be an applicant.
When filling out the application form, you’ll be required to provide the following documentation:
- Evidence of citizenship or permanent residency (birth certificate, passport, citizenship certification)
- 100 points of identification (drivers license, passport, proof of age card)
- Evidence you reside in Australia (Medicare card, debit/credit card, vehicle registration)
- Copy of the contract for the purchase of the home (if buying a new home or off the plan)
- Contract to build a home (if building)
- Certificate of title and evidence of building costs (if an owner-builder)
Applications must be made within 12 months of the completion of the eligible transaction.
When will the grant be paid?
Depending on the nature of the transaction and how you applied, you can find details on when the payment will be made below:
| When applying through an approved agent | When applying through the WA state revenue office |
| Buying a new or off the plan home: at date of settlement | Buying a new or off the plan home: after name is registered on certificate of title (approximately three to six weeks after settlement) |
| Building: after first construction progress payment is made, and name is registered on certificate of title | Building: after first construction progress payment is made, and name is registered on certificate of title |
| Owner builder: after evidence is provided that the home is ready for occupation and name is registered on certificate of title | Owner builder: after evidence is provided that the home is ready for occupation and name is registered on certificate of title |
Are first home buyers in WA exempt from stamp duty?
First home buyers in WA can apply for stamp duty discounts, so long as the cost of their property meets the criteria. You may be eligible for the first home owner rate (FHOR) if:
- You qualify for an FHOG
- You would have qualified for the grant if it was available for established homes
Stamp duty is waived for first home buyers purchasing a property valued up to $430,000 and land valued up to $300,000.
For properties valued between $430,001 and $530,000, discounted or concessional rates apply - you’ll pay a discounted rate of $19.19 per $100 above $430,000. Properties valued above $530,000 will be charged stamp duty at the full residential rate.
For land valued between $300,000 and $400,000, duty is payable at a rate of $13.01 for every $100 above $300,000.
If you’re thinking about applying for the FHOR, you can do so using the same application form as the FHOG.
Alternative schemes you can apply for in WA
The FHOG isn’t the only grant/scheme out there ready to give you a helping hand. There are a number of other government incentives that could be exactly what you’re looking for. These include:
Home Guarantee Scheme
The Home Guarantee Scheme ensures part of an eligible buyer's home loan is guaranteed by the Federal Government, meaning Australians can buy a home sooner with a smaller deposit and without the need to pay LMI.
There are three components of the scheme:
- The First Home Guarantee (FHBG) - supports eligible first home buyers to buy their first home sooner, with a deposit as little as 5%.
- The Regional First Home Buyer Guarantee - supports eligible regional first home buyers to buy a home in a regional area with a deposit as little as 5%.
- The Family Home Guarantee (FHG) - supports eligible single parents with at least one dependent child to buy a home, with a deposit as little as 2%.
First Home Super Saver Scheme
Under the First Home Super Saver Scheme (FHSSS), first home buyers can make voluntary concessional (taxed at a discounted rate of 15%) and non-concessional (already taxed at marginal rate) contributions into their super fund which can be later withdrawn for a house deposit.
First home buyers can contribute a maximum of $15,000 in any one financial year to the FHSSS scheme, and a maximum of $50,000 per person overall.
Keystart
Keystart is a WA Government initiative designed to help buyers get into their first new home faster. Under the initiative, buyers can apply with a deposit as low as 2%, do not need to pay LMI, and have no monthly account keep fees.
There are a number of eligibility criteria you will need to meet in order to apply, some of which include:
- You are over 18 years of age
- You don't already own a home or land
- You're looking for a home to live in (not to rent out)
- You are an Australian citizen or permanent resident
- You live in Western Australia and want to buy or build a home here
You must also meet the required income limits and property price caps - dependent on where you live and who you apply with.
Help to Buy scheme
Introduced by the Albanese Government, the Help to Buy scheme is a 'shared equity scheme' that allows an eligible participant to co-buy a home with the government.
Eligible buyers purchasing a home can receive an equity contribution of up to 40% of the cost of a new home, or 30% for existing homes.
Buyers only need a minimum 2% deposit and are not required to pay LMI.
The scheme is set to start some time in 2024.
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