As of the 1st of January 2017, the State Government rolled out a temporary increase of $5000 to the current $10,000 First Home Owner Grant (FHOG). This means that all eligible first home buyer building a new home between 1st January 2017 – 30th June 2017 will receive a huge $15,000 towards their first home build! Here is all you need to know about the first home owner grant (FHOG) increase in WA.
Who is eligible for the FHOG?
- The FHOG applies to NEW residential buildings only and does not apply to established homes, vacant land, business premises, holiday houses or minor renovations to an existing home.
- The applicant must be a person (not a company or trust), who is an Australian citizen or resident over the age of 18.
- Applicants and/or their spouse cannot have previously received the FHOG or First Home Owner Rate of Duty (FHOR) under this scheme.
- Each applicant cannot have previously owned a residential property anywhere in Australia.
- The applicant must live in the purchased home for a continuous period of at least six months, commencing within 12 months of completion of the eligible transaction.
- The total value of the property must not exceed the value of: $750,000 if the property is located south of the 26th parallel of south latitude (including Perth and the South West); or $1,000,000 if located north of the 26th parallel of south latitude (north of Denham).
After qualifying for the FHOG, the additional boost is available to those who purchase or contract for the construction of an eligible new home, on or after January 2017 and on or before 31 December 2017. The only restrictions to the first home owner grant increase involve timing. For example:
- Construction of a new home must have commenced within 26 weeks after the date of the contract and be completed within 18 months of commencing construction.
- For owner builders, construction must commence on or after 1 January 2017 and on or before 31 December 2017 and be completed by 30 June 2019.
- For a contract to buy an ‘off the plan’ home, the contract must have been entered into on or after 1 January 2017 and on or before 31 December 2017, and be completed 30 June 2019.
How to Apply for the FHOG and the Boost
First take a minute to see if you can get your first home based on your wants, needs and current financial situation. It’s certainly worth taking advantage of a free consultation with Aussie Living Homes and the expert financial advisors at Toro Financial Solutions before launching into your application, so that you gain a better understanding of the entire first home buying process.
After looking through all of the home designs available and getting a feel for your favourite properties by visiting the display homes, it’s time to apply. Once you’ve chosen your dream build, you will need to apply for a home loan through a financial institution (i.e. bank or credit union).
Most lenders will be a FHOG approved agent, or will work with institutions who are, and will submit the relevant paperwork to the appropriate authorities on your behalf. Alternatively, you can apply directly through the Office of State Revenue by completing the application form and submitting in person or by mail to the Office of State Revenue.
Keep in mind, there are TWO separate forms to complete. Form F-FHOG1 ‘FHOG Application and/or Pre-approval for the First Home Owner Rate of Duty’ must be completed by all applicants prior to lodgement. If applying for the $5,000 boost payment, complete and submit form F-FHOG 5 ‘Boost Payment – Addendum to the FHOG Application Form’. Applications, with all required supporting documentation, must be made within 12 months of completing the transaction to be eligible for consideration of the grant or first home owner rate of duty.
Remember, this is just a guide! For more detailed information regarding the First Home Owner Grant and Duty Concession, see the Department of Finance website.
For some extra tips on finance and saving for your first home, read: