The West Australian government has announced a temporary boost to the First Home Owners Grant. Eligible first home buyers purchasing or building a new home will receive an additional $5,000.
This brings the total First Home Owners Grant for new home owners to $15,000.
The announcement was made 27 December 2016 and full details on eligibility requirements are pending. The Department of Finance has promised to make the information available throughout January 2017.
At this stage they’ve announced the following requirements (in addition to the standard FHOG Requirements):
Stamp duty concessions on the purchasing of vacant land to build the home still apply.
The extra $5,000 may allow some borrowers to enter the market with a lower deposit.
While the extra boost would be considered non-genuine savings there may still be options available. Some of our lenders are able to offer non-genuine savings home loans.
While the extra money does not improve borrowing capacity it may improve your “buying power”. Having a larger deposit does not necessarily allow you to borrow more. Borrowing capacity is based on your income & expenses
The extra money may allow you to buy for more thereby increasing your buying capacity.
Unfortunately there are no changes for those looking to buy an established property.
The existing stamp duty concessions still apply to established properties. This includes paying no stamp duty for purchases up to $430,000. A discounted rate of duty applies to houses between $430,000 and $530,000.
Do you want to know how the increased grant affects you? We can run the numbers on how the changes affect your buying power. Get in contact with us about our obligation free mortgage broker service.
We can help work out the best way to finance your brand new first home!