As mortgage brokers for home loans in the Baldivis, Kwinana and Rockingham areas, we have helped a lot of first home buyers make the transition from renters to homeowners. The process of buying a first home can be overwhelming for many. The good news is that it’s overwhelming because there are a lot of benefits for first home buyers.
Two states, the Northern Territory and Tasmania, are making changes to their First Home Owner Grant (FHOG) in 2015; Western Australia is not. But now is a great time to review your potential benefits under the FHOG and other benefits offered in WA in a clear, concise manner.
First Home Owner Grant
The first home owner grant provides $3,000 for a first home buyer who purchases an established home. If you buy a new home, it goes up to $10,000. There is a $750,000 cap on the grant in most of WA. Above the 26th parallel, the cap goes up to $1 million. You must live in your first home for six continuous months within one year of buying the home.
You may also be eligible for $2,000 under the Home Buyers Assistance Account. In addition, there is also a stamp duty rate, but only if the home costs less than $530,000. Your first $430,000 is duty free. The rest of your purchase price, up to the ceiling of $530,000, is taxed at $19.19 per $100.00.
If you are building a new home, the building is not subject to stamp duty. The first $300,000 of vacant land is exempt and the next $100,000 is taxed at a rate of $13.01 per $100.00. Any piece of vacant land costing more than $400,000 is not eligible for the exemption.
Call Smartline Rockingham
To learn more or to apply for a home loan, talk to one of the mortgage brokers at Smartline Rockingham: (08) 9527 1800.