As a mortgage broker who has helped a lot of people buy their first homes in Baldivis, I know how hard it can be to save for your first deposit. I know what a jump up it is from renter to first home buyer. But it can be done and the WA government still has two programs that help you purchase your first home.
The first program is the First Home Owner Grant (FHOG). The FHOG gives you $10,000 if you build your first home. The value of the home must not be more than $750,000.
- You have to be a person over 18 years of age. That means corporations and businesses can’t apply for a FHOG.
- At the time of the application, at least one applicant must be a permanent resident or an Australian.
- You may not have ever used FHOG with another spouse or partner.
- It must actually be your first home; if you have owned a home with a different spouse, you are still not eligible.There are a few conditions and exceptions but they tend to be confusing. If you have questions, we will be glad to help you out.
- You have to own the land on which the home is being built.
- It must be a new home; there is no FHOG for established homes.
You must occupy the home for at least six months within one year of settlement.
First Home Owner Rate of Duty
There is another, even better benefit called the First Home Owner Rate of Duty. This represents a substantial savings over the standard rate of duty. You must be eligible for the FHOG to claim the First Home Owner Rate of Duty. If you are buying a new home, the home can’t have a value of more than $530,000. If the home is valued at $430,000 or less, no duty is payable. If the home is valued over $430,000 but doesn’t exceed $530,000, a duty of $19.19 is paid on every $100 over $430,000.
If you are buying vacant land and building, stamp tax duty is only paid on the land. No duty is paid on the first $300,000. If the land costs more than $300,000 but doesn’t exceed $400,000, stamp duty is $13.01 for every $100 over $300,000. If the land costs more than $400,000, it is not eligible for stamp tax duty.
To learn more or to apply for a pre-approved mortgage, call Smartline Rockingham today: (08) 9527 1800.