Western Australians are scrambling to get their piece of the nation's hottest property market in 2024. Through the twelve months to April '24, Perth property prices grew a monstrous 21.1% while prices in the rest of WA rose 13.3%. For those who already own a slice of WA, this boom has likely been wonderful, but those yet to get their foot on the property ladder might be panicking that the dream of home ownership is slipping further out of reach.

If you need all the help you can get to buy a home in WA, there are a few Government initiatives that might apply to you, including the $10,000 First Home Owner Grant.

How the WA First Home Owner Grant works

The WA First Home Owner Grant (FHOG) is a one-off grant up to $10,000 for first home buyers purchasing a newly constructed property.

Launched in October 2008 as the First Home Owner Boost, the WA FHOG is available to first home buyers purchasing or building a new residential home. It is not available for established homes and usually not for a renovated existing home, although if the renovations are substantial enough the property could be considered a new home. One grant is payable per transaction, so two people buying together can only get one payment.

The grant is not means-tested so your income won't affect your eligibility for the grant.

What are the price limits for the grant?

While your income does not affect eligibility, the grant is only available for property transactions below a set value.

The total value of a transaction comes down to the type of 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.

Price limits for the WA FHOG are dependent on where the suburb you are buying in is located in relation to the line of latitude 26 degrees south of the equator. This might seem bizarrely arbitrary, but this line actually cuts WA neatly in two, passing through Shark Bay on the west coast. The Northern Territory/South Australia border is also on the 26th parallel south, so you can see the division by extending that border through WA. The Perth metropolitan area is all south of the line.

If the property or land is:

  • South of the 26th parallel, the price limit is $750,000.

  • North of the 26th parallel, the price limit is $1,000,000.

WA First Home Owner Grant eligibility

To qualify for the WA FHOG you must:

  • Be 18 years or older.

  • Have at least one applicant who is an Australian citizen or permanent resident.

  • Not have received any other FHOG grants or stamp duty exemptions anywhere in Australia.

  • Not have owned any residential property in Australia before 1 July 2000.

  • Reside in the property as your principal place of residence for a continuous period of at least six months, within 12 months of settlement or date of building completion.

How do you apply for the WA First Home Owner Grant?

You can apply for the grant once the contract has been signed and dated by all parties to buy or build a new home, or when the foundations have been laid if you're an owner-builder. Applications must be made within 12 months of the completion of the eligible transaction.

There are a few different avenues to apply for the grant through:

Apply Online

A FHOG application can be completed online through the FHOG Application Portal. This can only be done by the applicant, not by a third party.

Use an approved agent

Western Australians can also apply for the FHOG through an approved agent. Approved agents are institutions authorised to process applications, which includes most home loan lenders. Typically, you would lodge your application through the lender you're borrowing from. Contact your lender to find out whether they are an approved agent.

Through RevenueWA

If your lender is not an approved agent, then you can lodge an application directly with RevenueWA. To apply for the WA FHOG you will need to fill out an FHOG Application Form found on the RevenueWA website.

The WA Government suggests first home buyers who are not financing the purchase lodge their FHOG application through RevenueWA.

WA First Home Owner Grant application checklist

When filling out the application, you'll be required to provide a number of documents, including:

  • Evidence of citizenship or permanent residency (birth certificate, passport, citizenship certificate).

  • 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 you are building.

When will the grant be paid?

When the grant will be paid comes down to the type of transaction and how you applied. You can find the details in the table below:

Type of transaction

Applying through:

Payment of grant

Purchase of a new or off the plan home

Approved agent

At date of settlement by approved agent.

Purchase of a new or off the plan home

RevenueWA

After you have provided evidence to RevenueWA that your name has been registered on the certificate of title of the property (approximately three to six weeks after settlement).

Contract to build

Approved agent or RevenueWA

After you or the approved agent has provided evidence of the date of first construction progress payment and the applicant's name is registered on the certificate of title of the property.

Owner builder

Approved agent or RevenueWA

After you or the approved agent has provided evidence that the home is ready for occupation as a place of residence and your name is registered on the certificate of title of the property.

Source: RevenueWA

Can you use the grant as a deposit?

You can use the WA FHOG for a deposit but at $10,000, it's unlikely to be enough to purchase a home on its own. As of April 2024, the median property price in Perth is $721,278, so that $10,000 would be a 1.3% deposit. Most lenders cap LVR at 95%, or a 5% deposit, so while the $10,000 from FHOG could be a helpful shot in the arm, you'll likely still need substantial savings of your own.

Can first home buyers get stamp duty discounts in WA?

The First Home Owner Rate (FHOR) is a lower concessional rate of stamp duty for first home buyers. To be eligible for the FHOR, home buyers must qualify for the FHBG, or would have qualified except for the fact they were buying an existing home. The dutiable value of the land and property also must not exceed $600,000, or if purchasing vacant land, the value must not exceed $400,000.

The FHOR means that when the value of the land and property is below $450,000, no duty is payable. When the value is between $450,000 and $600,000, the concessional rate is $15.01 per $100 or part of $100 above $450,000.

This is how much the lower rate could be worth depending on the property value (land and dwelling):

Property value (land and property)

Normal stamp duty rate

Duty payable

First Home Owner Rate

Duty payable

Savings

$300,000

$3,135 +$3.80 per $100 or part of $100 above $150,000

$8,835

Exempt

$0

$8,835

$400,000

$11,115 + $4.75 per $100 or part of $100 above $360,000

$13,015

Exempt

$0

$13,015

$500,000

$11,115 + $4.75 per $100 or part of $100 above $360,000

$17,765

$15.01 per $100 or part of $100 above $450,000.

$7,505

$10,260

$550,000

$11,115 + $4.75 per $100 or part of $100 above $360,000

$20,140

$15.01 per $100 or part of $100 above $450,000.

$15,010

$5,130

First home buyers can take advantage of both the WA FHOG and FHOD and can apply for both of them at the same time.

What other WA schemes and grants can first home buyers use?

In addition to the WA FHOG, there are a number of Federal Government grants available to first home buyers in the Golden state.

First Home Buyer Guarantee Scheme

With the First Home Buyer Guarantee, the government steps in as a guarantor for up to 15% of the loan value. This basically means if you default, the Government will step in and cover up to 15% of the cost, which mitigates your riskiness in your lenders eyes. The upshot is that you can buy a property with a deposit as small as 5% and not have to pay Lenders Mortgage Insurance.

This scheme is potentially available for any Australian citizen who has not previously owned property, but there are a limited amount of places each year (currently 35,000). Price caps also apply, depending on the state and region the property is in.

The full list of the 33 lenders that participate in the FHBG can be found here.

The Regional First Home Guarantee

The Regional First Home Buyer Guarantee is available for first home buyers in regional Australia.

There are 10,000 places each year available to first-home buyers purchase a regional home with small deposit, as low as 5%, without having to pay LMI. This means you can borrow up to 95% of the property value, with the federal government providing the lender with a guarantee of 15%.

The Family Home Guarantee

The Family Home Guarantee allows single parents to secure a home loan with as little as a 2% deposit (via a government guarantee of up to 18%). Launched on 1 July 2021, 5,000 spots will be available every financial year until June 2025. Participants must be a first home buyer, with a maximum income of $125,000. The loan must be repaid through principal and interest repayments and can't be longer than 30 years.

The First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSS) helps first home buyers save up a deposit by utilising the tax discounts that superannuation can offer. Essentially, it allows first home savers to salary sacrifice up to $15,000 per year towards the scheme at a discounted tax rate of only 15% (instead of their marginal tax rate - typically 32.5%).

When ready to buy a house, up to $50,000 can be released from the scheme (plus any earnings).

Article first published 27 July 2021.

In the market for a home? The table below features some of the lowest-rate 95% LVR (5% deposit) owner occupier home loans on the market

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.99% p.a.
5.99% p.a.
$2,995
Principal & Interest
Variable
$null
$null
95%
6.29% p.a.
6.31% p.a.
$3,092
Principal & Interest
Variable
$0
$195
95%
6.29% p.a.
6.32% p.a.
$3,092
Principal & Interest
Variable
$0
$300
95%
6.59% p.a.
6.86% p.a.
$3,190
Principal & Interest
Variable
$295
$0
95%
6.65% p.a.
6.70% p.a.
$3,210
Principal & Interest
Variable
$0
$745
95%
6.74% p.a.
7.09% p.a.
$3,240
Principal & Interest
Variable
$0
$0
95%
6.79% p.a.
6.81% p.a.
$3,256
Principal & Interest
Variable
$0
$210
95%
6.74% p.a.
6.78% p.a.
$3,240
Principal & Interest
Variable
$0
$0
95%
7.14% p.a.
7.52% p.a.
$3,374
Principal & Interest
Variable
$395
$350
95%
7.15% p.a.
7.18% p.a.
$3,377
Principal & Interest
Variable
$0
$0
95%
7.19% p.a.
7.22% p.a.
$3,391
Principal & Interest
Variable
$0
$350
95%
7.19% p.a.
7.43% p.a.
$3,391
Principal & Interest
Variable
$248
$350
95%
7.34% p.a.
7.34% p.a.
$3,441
Principal & Interest
Variable
$0
$0
95%
7.74% p.a.
8.10% p.a.
$3,579
Principal & Interest
Variable
$null
$400
95%
7.74% p.a.
7.86% p.a.
$3,579
Principal & Interest
Variable
$10
$150
95%
7.79% p.a.
7.82% p.a.
$3,596
Principal & Interest
Variable
$0
$635
95%
7.84% p.a.
7.86% p.a.
$3,613
Principal & Interest
Variable
$null
$400
95%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 95%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Photo by Nathan Hurst on Unsplash



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