Boost To The First Home Owners Grant

By Matthew Kenworthy | News

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.

What Are The Conditions

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):

  • The contract needs to be entered into between 1 January and 31 December 2017.
  • Construction must start within 26 weeks of entering a building contract. It must be completed within 18 months of construction starting.
  • Owner Builders who start laying foundations between the required dates are also eligible.
  • The boost only applies to those purchasing or constructing a new home.

Stamp duty concessions on the purchasing of vacant land to build the home still apply.

Can I Use A Lower Deposit?

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.

Does This Improve My Borrowing Capacity?

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.

What About Buying An Established Property

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.

Want To Know More?

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!

About the Author

Matthew Kenworthy is a specialist in all aspects of Residential & Commercial Finance. He can assist all borrowers from First Home Buyers to Property Investors with Large Portfolios.