First Home Owner Grant
The first home owner grant is a one-off payment to encourage and assist first home buyers to buy or build a new residential
property for use as their principal place of residence.
First home owners buying an established property which has previously been lived in, or previously been sold are not eligible for the FHOG but may be eligible for the First Home Owner Rate (FHOR) of duty. Please see further down in this blog for additional information on the FHOR.
First home owners building a new home may be eligible for a once off grant of up to $10,000.
The WA FHOG is specifically for first home buyers purchasing or building a brand new home valued at under $750,000 (if located south of the 26th parallel). If the new home is located north of the 26th parallel the cap is $1,000,000.
Am I Eligible?
To be eligible for the grant and/or first home owner rate of duty, applicants must satisfy the following criteria:
- An applicant must be a natural person (i.e. not a company) and be 18 years or over at the time of making application. If you are under 18, you may be able to apply for an exemption from the age requirement.
- At least one applicant must be an Australian citizen or a permanent resident at the time of making application.
- Applicants and/or their spouses or de facto partners cannot have:
- previously received the grant or first home owner rate of duty from any jurisdiction in Australia
- owned residential property anywhere in Australia before 1 July 2000
- owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence before 1 July 2004
- owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence for a continuous period of at least six months that began on or after 1 July 2004.
- Applicants must occupy the home as their principal place of residence for a continuous period of at least six months commencing within 12 months of settlement if purchasing a home, or within 12 months from the date of completion if building a home.
- Applicants must hold a relevant interest (ownership) in the land on which the home is situated and must own the home in their own capacity. If they own the home as a trustee, it must be held on trust for a person with a legal disability.
First Home Owner Rate (FHOR) of Duty
First Home Owners who qualify for the First Home Owner Grant, or would have qualified if for not purchasing an established home, may be entitled to the FHOR of Duty on the transfer.
If purchasing an established property up to $430,000 there will be no duty payable
For example: If you were to purchase an established property for $390,000 there will be no duty payable if you are approved for the FHOR of Duty
If purchasing an established property that is $430,001 – $530,000 there will be a reduced duty payable of $19.19 per $100 or part thereof above $430,000.
For example: If you were to purchase an established property for $490,000 the duty payable if approved for the FHOR of Duty would be $11,514 which is a considerable amount less than a ‘Non First Home Buyer’ who would need to pay $17,290
Home Buyers Assistance Account (HBAA) Rebate
Eligible first home buyers can receive up to $2,000 towards the costs involved in the purchase of their new home. This grant can be used to cover the costs of fees associated with purchasing a property for charges such as conveyancing fees, mortgage registration, inspection fees, mortgage insurance premiums and lending institute fees. Buyers need to be aware that what of the eligibility requirements is that the property must have been purchased through a licensed Real Estate Agency carrying out business in Western Australia. At the time of writing this, the current maximum purchase price of the property is $400,000.
How Do I Apply For These Grants/Assistance?
Your Mortgage Broker or Lending Institute will be able to assist you with the application process for the First Home Owner Grant and the Home Buyers Assistance Account Rebate. Your Conveyancer (us) will process the First Home Owner Rate of Duty once we have received confirmation of your eligibility.
Want to discuss in more detail? Please contact Kate @ Clarity on 9791 2722 who will be happy to take your call.
Alternatively, for more information follow the below relevant links: