What is the First Home Owner Grant in WA?
The First Home Owner Grant (FHOG) is a one-off, tax-free grant available to eligible first-home buyers in Western Australia. It can help first-time homeowners cover some of the costs of buying a home in WA, but strict limits and eligibility criteria apply.
How much is the First Home Owner Grant in WA?
The First Home Owner Grant in Western Australia is $10,000 for eligible first-home buyers to buy or build a new home. It’s on the lower scale of grants available in Australia, despite Perth recording a double-digit increase in house prices this year, according to Domain.com.au.
To qualify for the program, homes in Perth metropolitan areas must be valued under $750,000, while properties located north of the 26th parallel of South Latitude must be valued below $1,000,000. Eligible properties include:
- A new house, unit, townhouse or duplex (including off-the-plan)
- Substantially renovated homes
WA First Home Owner Grant eligibility criteria
- Applicants must be 18+ years of age
- You must be an Australian citizen or permanent resident (or applying with someone who is)
- You must be a first-home buyer who has not owned a property or received the grant previously
- You must be buying or building a new home in Western Australia
- You must move into your new property within a year of buying and live there for at least 6 months
- The grant is not available to property investors, or properties purchased through a trust or company
Is the WA First Home Owner Grant available if you’ve previously owned an investment property?
You may not be eligible for the FHOG if you’ve owned or partly owned an investment property, even before 1 July 2000, (when the FHOG was introduced), according to RevenueWA.
WA FHOG savings analysis on a $600,000 home loan
Loan amount | |
With $10,000 WA FHOG | $600,000 (reduced to $590,000) |
Without WA FHOG | $600,000 |
Interest rate | |
With $10,000 WA FHOG | 6.00% p.a. |
Without WA FHOG | 6.00% p.a. |
Monthly repayments | |
With $10,000 WA FHOG | $3,537.35 (save $59.95) |
Without WA FHOG | $3,597.30 |
Total to repay | |
With $10,000 WA FHOG | $1,273,445 (save $21,584) |
Without WA FHOG | $1,295,029 |
Total interest payable | |
With $10,000 WA FHOG | $683,445 (save $11,584) |
Without WA FHOG | $695,029 |
| With $10,000 WA FHOG | Without WA FHOG | |
|---|---|---|
Loan amount | $600,000 (reduced to $590,000) | $600,000 |
Interest rate | 6.00% p.a. | 6.00% p.a. |
Monthly repayments | $3,537.35 (save $59.95) | $3,597.30 |
Total to repay | $1,273,445 (save $21,584) | $1,295,029 |
Total interest payable | $683,445 (save $11,584) | $695,029 |
See First Home Owner Grants in each state & territory
Do you need to show genuine savings when using a grant?
Mansour Soltani , Money's home loan expert
“When applying for a home loan, lenders typically require you to demonstrate genuine savings equivalent to at least 5% of the loan amount, in addition to any grants you plan to use. Lenders will request three months of bank statements to assess your savings history and expenses. If you have a rental ledger, some lenders may consider rental payments as genuine savings.”
Mansour Soltani , Money's home loan expert
How to apply for the WA First Home Owner Grant
You can apply for the First Home Owner Grant through your lender (who will handle all the paperwork) or directly with RevenueWA.
If you apply via your lender
Complete the First Home Owner Grant application form and submit it to your lender with the supporting documents of the property purchase. You’ll also be asked to provide 100 points of Australian or state-issued documents that the lender can use for your home loan application. The lender will lodge your FHOG application on your behalf.
If you’re approved for the FHOG, you’ll usually receive the payment at settlement if you’re buying a newly-established home or at the first drawdown of funds for contracts to build a new home.
If you apply via RevenueWA
You can lodge your grant application online and upload your supporting documents via the RevenueWA Online Application Portal.
If you’re approved for the FHOG, you’ll receive the payment once your name is registered on the property title (approximately 3-6 weeks after settlement) or at the first drawdown of funds if you’re building a new home.
How to fill out the WA First Home Owner Grant application form
1
Complete the eligibility checklist
Verify your eligibility for the First Home Owner Grant. Tick the relevant box for questions 1 to 8.
2
Enter your personal details
Each applicant must fill out their personal information and contact details. If you’re applying with a spouse, they must enter their details in the ‘Applicant 2’ section. There’s a separate section for spouses not party to the grant application further down.
3
Provide your property and transaction details
Enter the details of the property you’re buying, including the street address or a lot number if a street number is not allocated (e.g. new housing estates or developments). You’ll also be asked to include transaction details, such as your settlement date for a new home, a contract of sale or contract to build date.
4
Provide your bank account details
If you’re applying directly through RevenueWA, you will need to nominate the bank account you’d like the grant paid into. If you’re applying through your lender, the grant will be paid to them in accordance with your agreement.
5
Sign the declaration
Each applicant must agree to and sign the declaration to confirm that all information provided is true and correct, and that they’ve read and understood all the details completed on the application form.
Other support for first-home buyers in WA
Home Guarantee Scheme
The First Home Guarantee (FHBG) is a nationwide program that helps eligible first-home buyers purchase a property with a deposit as low as 5%, including in regional areas under the Regional First Home Buyer Guarantee (RFHBG). Housing Australia guarantees up to 15% of the value of a first home, meaning you’d avoid lender’s mortgage insurance (LMI).
In Western Australia, the FHGB price cap is $600,000 for homes in capital cities and regional centres and $450,000 for the rest of the state.
There’s also the Family Home Guarantee (FHG) to help eligible single parents or guardians buy a property with a deposit as low as 2%, with Housing Australia guaranteeing up to 18% of the property’s value.
Can you combine the WA first-home buyer grant and First Home Guarantee?
Yes, it’s possible to use both the $10,000 WA first-home buyer grant and (FHBG) if you qualify, according to Housing Australia. However, the FHOG is typically available only at settlement (i.e. after the completion of your property transaction), so it can’t directly be put towards the minimum 5% deposit for the FHBG.
Can you use the WA First Home Owner Grant as part of your home loan deposit?
Mortgage brokers we spoke to said in certain situations lenders might consider including your FHOG as part of your deposit, most commonly with off-the-plan property transactions.
Even if a lender does not accept FHOG funds as part of your deposit, being eligible for it may still help you when applying for a loan. For example, lenders may factor in the one-time payment when assessing your borrowing capacity, pending grant approval, according to ANZ.
First-home buyer WA stamp duty exemption
First-home buyers may be eligible for an exemption on stamp duty in Western Australia for properties valued under $450,000 and vacant land under $300,000. That’s a potential saving of up to $15,390 and $8,835.00, respectively (if general rates were applied).
