If you’re a first-time homebuyer in Western Australia, our step by step guide to applying for the FHOG in WA will take you from confused to confident. Within this article, you’ll find the essential details to determine your eligibility, what documents you’ll need, and how to smoothly navigate the application process.
Key Takeaways
- The First Home Owner Grant (FHOG) in WA provides a $10,000 grant for eligible first-time homebuyers and applies to the purchase or construction of new homes only, with strict eligibility criteria including residency requirements.
- Applicants must ensure all the required documentation is submitted correctly and the application form is completed accurately to prevent delays, with an average processing time of four weeks and funds typically disbursed within five working days after approval.
- Additional benefits for first home buyers in WA include the Australian Government’s First Home Guarantee scheme and the proposed Help to Buy Scheme, as well as stamp duty concessions, each with specific eligibility requirements and application processes.
Understanding the First Home Buyers Grant (FHOG) in WA
The First Home Owner Grant (FHOG) in WA, funded by the Government of Western Australia and administered by the Office of State Revenue, is a helping hand for first-time homebuyers. The grant offers a one-off payment of $10,000 to offset the goods and services tax (GST) associated with home ownership.
The objective of the grant is to boost home ownership by offering financial assistance through the home buyers assistance account to eligible first-time home buyers.
Grant Amount and Property Types
The grant offers a maximum amount of $10,000, or the consideration paid, whichever is less, for the purchase or construction of a new house. Keep in mind, the grant is a single offer per eligible transaction, thus a joint purchase will only yield one grant.
The eligible properties for this grant are newly constructed homes or properties purchased off the plan, not established homes or previously owned property.
Eligibility Criteria
The eligibility criteria for the FHOG in WA stipulates that applicants must be natural persons, at least 18 years old, and at least one applicant must be an Australian citizen or a permanent resident. However, the grant is not available to those who have previously owned residential property in Australia if they lived there continuously for at least six months on or after 1 July 2004, or owned a property on or after 1 July 2000.
Furthermore, to meet residency requirements, those who receive the FHOG must occupy the purchased or built home within a year and reside there for a minimum of six consecutive months.
Preparing Your FHOG Application
Once you have familiarised yourself with the grant and confirmed your eligibility, the next step is to prepare your FHOG application. This requires careful gathering of all necessary information and documents.
In preparing the FHOG application, a statutory declaration for separated couples must be submitted, along with the necessary information, through the State Revenue Office.
Required Documents
Each applicant and their spouse or de facto partner must submit supporting evidence for the FHOG application. One legible copy of supporting evidence from each required documentation category must be provided by each applicant and their spouse or de facto partner, and a single document cannot fulfill the requirements of more than one documentation category.
These supporting documents must be submitted with the online application in a legible format.
Application Form Completion
Completing the application form with precision is paramount for a seamless application process. Incomplete or incorrect applications can lead to delays in processing or penalties.
Additionally, precise bank account details on the FHOG application are vital to avoid payment discrepancies, as wrong information could result in irreversible problems.
Submitting Your FHOG Application
Once your application is ready and all information is verified, the subsequent step is to submit your application. In Western Australia, the FHOG application can be submitted online, in-person, or by mail. If you’re applying for a loan from a financial institution, check if the institution is an approved agent to assist with the FHOG application process. Remember that all necessary supporting documents must be uploaded for review by RevenueWA if you choose online submission.
Importantly, the FHOG application must be submitted after all parties have signed the contract to buy or build the home and within 12 months of completing the transaction.
Online Submission
Submitting your FHOG application online is a convenient option. To do this, you must use the FHOG Application Portal provided by the state government. A Lodgement Guide is available to assist with the online submission process.
Do remember, the applicant must submit the application personally; third-party submissions aren’t accepted through the FHOG Application Portal. If you’re obtaining a loan from a financial institution that is an approved agent, the institution can lodge the application on your behalf.
In-Person and Mail Submission
Should online submission not be your preference, you have the option of submitting your application in-person or by mail. You can lodge your FHOG application with RevenueWA if your lender is not an approved agent, or if you’re not obtaining finance for the home purchase. If you’re unable to complete the FHOG application online, you can obtain a physical application form to submit via mail or web enquiry.
For mail submissions, send your completed FHOG application along with the necessary supporting documents directly to RevenueWA. The official mailing address for the FHOG application forms can be located on the RevenueWA website or on the application form itself.
After Submission of the FHOG
Following your FHOG application submission, you might wonder about the subsequent steps. The process that follows submission includes:
- A review of your application by the relevant authorities
- A typical processing time of around four weeks
- You will be notified about the decision on your application and informed about the next steps if your application is approved, or if additional information is required.
Approval Process and Timeline
Following the submission, your application enters a phase of review and approval. The average processing time for FHOG applications is approximately four weeks, although this can be delayed if the application is incorrectly filled out or if supporting documentation is missing or incomplete.
Here is an overview of the process:
- Submit your application.
- Wait for the application to be reviewed.
- Receive an approval notification via email.
- Funds are typically disbursed within five working days after approval.
The grant funds are usually paid directly into the applicant’s nominated account after settlement or completion of the home’s construction.
Processing Time
Note that the average processing duration for First Home Buyers Grant applications in Western Australia spans roughly 3-6 weeks. If you’re an owner-builder, you can apply for the FHOG after laying the foundations of your home, but the grant’s eligibility and processing time can only be determined after the home is completed and possibly after a valuation.
Approval Notification
Once your application has been processed, you will be notified of the outcome. If you’re utilising an approved agent or lender for your FHOG application, they will inform you of your application status and any further actions required.
When applications are lodged directly with RevenueWA, the State Revenue Office communicates approval notifications and instructions directly to applicants. Applicants who have submitted their FHOG applications online will receive notifications regarding their application status via the FHOG Application Portal.
To ensure timely reception of approval notifications, you must provide up-to-date communication preferences, such as email or postal address, to the Office of State Revenue or your financial institution.
Utilising Your FHOG Funds
Upon securing the FHOG, the ensuing step is to put the funds to use. Please remember that you can’t use the FHOG funds as a deposit for your first home purchase. The funds should be used effectively to aid in your property purchase or construction.
Accessing Funds
Accessing the FHOG funds after approval is a critical step. Applicants must carefully verify bank account details before submitting the FHOG application to avoid mistaken transfers due to input errors. Keystart aids in accessing FHOG funds by:
- Advancing the grant amount to the settlement agent
- Ensuring it is available at settlement time
- Repaying the advance upon receipt of the actual funds from the Office of State Revenue.
Upon approval of a current FHOG application, the funds are generally made accessible at the time of property settlement or at the initial drawdown for those building new homes.
Using Funds for Property Purchase
The FHOG is designed to help first home buyers purchase or build their first home. The grant funds must be used towards the purchase or construction of a new home that will be the principal place of residence for a continuous period of at least six months. Using the FHOG for investment purposes or buying established homes is not permitted.
You can apply the grant towards the down payment, closing costs, or construction costs incurred in the building process of a new home. Funds from the FHOG can be allocated directly to property settlement or builder payments for applicants planning to construct a new home.
Additional Benefits and Assistance for First Home Buyers in WA
Beyond the FHOG, first home buyers in WA can avail of further benefits and assistance. The Australian Government’s First Home Guarantee scheme assists eligible home buyers, and it is distinct from the FHOG. A total of 35,000 places are available under the First Home Guarantee for eligible first home buyers in the financial year 2023-24, which allows qualifying buyers to purchase a home with at least a 5% deposit, bypassing lenders’ mortgage insurance. To apply for the Home Guarantee Scheme, individuals must submit their applications through Participating Lenders, which comprise a panel of 33 lenders authorised by Housing Australia. The income cap limits for the Home Guarantee Scheme and other assistance in WA vary by region, and are calculated based on the Notice of Assessment from the Australian Taxation Office. This assessment helps determine eligibility for the schemes..
The proposed Help to Buy Scheme is another government initiative designed as a shared equity scheme aimed at helping eligible buyers afford a home with a lower deposit. This scheme provides an equity contribution of up to 40% for new homes and 30% for existing homes, reducing the need for a large deposit and mortgage.
To participate in the Help to Buy Scheme, buyers must:
- Have at least a 2% deposit
- Qualify for a home loan with a participating lender
- Meet income thresholds
- Not own other property
- Live in the purchased property
Each year, 10,000 places are available under certain property price caps.
Various home loan options such as a risk fee instead of Lenders Mortgage Insurance for non-traditional loans or for loans with a Loan to Value Ratio above 80% are also available for first home buyers in WA.
Stamp Duty Concessions
First home buyers in WA qualify for stamp duty concessions, encompassing exemptions for properties valued under $530,000. When applying for the FHOG, first home buyers must apply for assessment or reassessment of duty at the First Home Owner Rate. The stamp duty concessions apply for homes valued between $430,000 and $530,000, and for vacant land worth between $300,000 and $400,000. However, properties that exceed the $530,000 value threshold for homes or $400,000 for vacant land do not qualify for these concessions.
Government Assistance Schemes
Various government assistance schemes are available to provide additional support to first home buyers in WA. Apart from the First Home Owner Grant and the First Home Guarantee scheme, the proposed Help to Buy Scheme is another valuable resource designed to help eligible buyers afford a home with a lower deposit. This scheme provides an equity contribution of up to 40% for new homes and 30% for existing homes, reducing the need for a large deposit and mortgage.
To participate, buyers must:
- Have at least a 2% deposit
- Qualify for a home loan with a participating lender
- Meet income thresholds
- Not own other property
- Live in the purchased property
Each year, 10,000 places are available under certain property price caps, with the assistance of a licensed real estate agent.
FAQ Section
We understand you may have questions about the FHOG application process in WA. Therefore, we have compiled a list of frequently asked questions to provide additional clarity:
- Question: Can the FHOG be used as a deposit when purchasing my first home? Answer: No, the FHOG funds cannot be used as a deposit when purchasing your first home. They can, however, be used towards the purchase or construction of a new home that will be your principal place of residence for at least six months.
- Question: What is the average processing time for First Home Buyers Grant applications in Western Australia? Answer: The average processing time for FHOG applications is approximately 3-6 weeks.
- Question: Can I apply for the FHOG if I’m an owner-builder? Answer: Yes, owner-builders can apply for the FHOG after laying the foundations of their home. However, the grant’s eligibility and processing time can only be determined after the home is completed and possibly after a valuation.
- Question: How will I be notified of the outcome of my FHOG application? Answer: Approval notifications for the FHOG are sent via email. If you’re utilising an approved agent or lender for your FHOG application, they will inform you of your application status and any further actions required.
- Question: Are there any additional benefits and assistance available for first home buyers in WA apart from the FHOG? Answer: Yes, there are additional benefits and assistance available for first home buyers in WA. These include the Australian Government’s First Home Guarantee scheme and the proposed Help to Buy Scheme, as well as stamp duty concessions.
Double Check if you are Eligible Today
Equipped with comprehensive information about the First Home Buyers Grant and the home owner grant application process in Western Australia, you’re ready for the next phase in your home ownership journey. Check your eligibility, gather your documents, and start the application process.
The path to owning your dream home is just a click away!
Summary
Purchasing your first home is a significant milestone, and the First Home Buyers Grant in Western Australia is a fantastic resource that can help make your dream a reality. This blog post has provided detailed information on what the FHOG is, how to apply, what the eligibility criteria are, and what happens after you submit your application.
Remember, the FHOG is just one of many resources available to first home buyers in WA. Additional benefits and assistance, such as the First Home Guarantee scheme, the proposed Help to Buy Scheme, and stamp duty concessions, can further aid your home buying process. With these resources at your fingertips, the journey to home ownership can be less daunting and more manageable. Take the first step today!
Frequently Asked Questions
How does the first home buyers grant work in WA?
To get the First Home Owner Grant in Western Australia, eligible residents purchasing a brand new property can receive a one-off payment of up to $10,000 from the government. There are no income or assets tests to qualify and the grant is also available for homes that have undergone substantial renovations.
Do first home buyers pay stamp duty in WA?
Yes, first home buyers in WA can receive stamp duty exemptions on properties valued under $430,000 and concessional duty rates for properties valued at $430,000-530,000. This exemption and concession aim to support eligible first-time home buyers.
What is the first home owner rebate in WA?
In Western Australia, the First Home Owner Grant (FHOG) is worth $10,000 and is aimed at encouraging first home buyers to purchase or build a new residential property for use as their primary residence. There are certain limitations on the purchase price to be eligible for the grant.
What is the first home guarantee scheme in Western Australia?
The First Home Guarantee in Western Australia, previously known as the First Home Deposit Scheme, enables a limited number of first home buyers to purchase a property with a 5% deposit without paying LMI.
How much can I receive from the FHOG in Western Australia?
You can receive a one-time payment of $10,000 from the FHOG in Western Australia.