First Home Owners Grant Western Australia
The First Home Owners Grant Western Australia has been a most successful first home buyer incentive ever since its inception on July 1, 2000. This grant along with other benefits offered to first home buyers in Western Australia have helped many thousands of people purchase their first home.
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The First Home Owners Grant Western Australia is a part of a nationwide program specifically set up to help first home buyers absorb the extra costs involved when the Australian Government introduced the Goods and Services Tax (GST) on the same day in 2000. It is funded by the Australian Government but is administered by the various state and territory governments. This has led to some variations in its administration between the states and territories to better suit local conditions but its main thrust of providing a tax fee lump sum payment of $7,000, to all eligible first home buyers throughout the country, remains the same throughout.
It is in Western Australia where the biggest difference between the various state and territory administration of the program occurs. It is only the First Home Owners Grant Western Australia that allows for a difference in valuation in two areas of its own jurisdiction. South of the 26th parallel in Western Australia the grant is capped at a home valuation of $750,000 but north of that line applications from eligible first home buyers will be accepted on homes valued up to $1,000,000.
The First Home Owner Rate
The eligibility criteria for the First Home Owners Grant Western Australia is also used for first home buyers to qualify to receive further assistance from the Western Australian Government in the form of the First Home Owner Rate. This incentive offers either an exemption from paying stamp duty or a generous concession off stamp duty costs depending on the value of the home you are purchasing. For instance if the first home you are buying is valued at no more than $500,000 you will be exempt from paying any stamp duty at all.
If the property is valued anywhere from $500,000 to $600,000 you will only have to pay a concessional rate. This means that if the home you are going to buy is valued at $250,000 you could save as much as $7,000 on stamp duty, which when added to the First Home Owners Grant of a further $7,000 you have an extra $14,000 at your disposal. An amount that could make the difference from you being able to purchase or not.
How to spend your grant money
The grant money is not means tested other than the property valuations it is paid up to and you can spend the money in any way that suits you best. Many first home buyers choose to use the money to pay the costs associated with buying a home, such as an establishment fee, a cost levied by some lenders to pay the set up costs of the loan. Some lenders deferred this cost and made it an exit fee instead, therefore recuperating their costs at a later date if the borrower wished to change loans for some reason within a certain time frame.
However because of the bad publicity exit fees have received from governments in trying to encourage home buyers to switch home loans, in order to obtain a lower interest rate from another borrower, many lenders are expected to once again ask for these costs to be paid up front. Other costs associated with buying a home will include valuation fees, a charge made by a valuer in order to have the home you are buying valued. Building and pest inspections are another cost that has to be incurred by the buyer in order to make sure that the home is solid and will not need any major repair work done to it, along with a pest inspection to clear the home of having termites etc.
There are also legal costs to take into consideration. Legal fees are charged by solicitors who are required to draw up the necessary legal contracts and to protect your interests as well as conveyancing charges, there could also be some outstanding rates and water charges to pay. It all adds up and if these fees can be taken care of with the First Home Owners Grant money it leaves more money that you can put towards the deposit which in turn means less interest you will have to pay.
How to make application
You can apply for the First Home Owners Grant Western Australia directly through the State Revenue Office, the government authority that manages it, or you can claim through your mortgage broker or lender if they are authorised agents to receive it. It is actually faster to use the services of your mortgage broker or lender than to apply direct.
Related posts:
- First Home Buyers Grant Tasmania (TAS)
- Federal Government First Home Owners Grant
- When Will I Get the First Home Owners Grant?
- How to Apply for the First Home Owners Grant in South Australia (SA)
- First Home Owners Grant New South Wales
- First Home Owners Grant FAQ
- First Home Buyers Grant Western Australia (WA)
- Can I Apply for the First Home Owners Grant if I Have Previously Owned a Property Which Was Then Sold?
- First Home Buyers Grant New South Wales (NSW)
- First Home Owners Grant (WA)
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