Western Australia's First Home Owner Grant (FHOG) aims to get first home buyers into the market sooner, providing a financial boost to eligible applicants.

If you're exploring the state for your future home, you might want to check out whether you can take advantage of the grant to achieve your home ownership goals.

What is the Western Australian First Home Owner Grant?

The FHOG provides a one-off payment to first home buyers to assist them in buying or building a new residential property.

The scheme was launched by the federal government in 2000 to offset the effect of the GST on home ownership. While the FHOG is a national scheme, each state and territory is responsible for funding and administering the program.

States and territories also pay out differing sums of money and have different eligibility criteria.

See also: How do First Home Owner Grants work?

In Western Australia, first home buyers can apply for a one-time $10,000 payment that they can put towards buying or building a new home in the state. It is not available to those purchasing an established home.

Who is eligible for the WA First Home Owner Grant?

First up, the grant is not means-tested in Western Australia, so people at all income levels can apply.

To be eligible:

• You must be 18 years or over at the time of making the application. If you're under 18, you may be able to submit an application provided that you also apply for an exemption from the age requirement

• At least one applicant (if you're applying with a spouse or de facto partner) must be an Australian citizen or a permanent resident at the time of making an application

• You must hold a relevant interest (ownership) in any land on which the home is situated and must own the home in your own capacity

When you qualify for the grant, you will need to occupy the property as your principal place of residence for a continuous period of at least six months commencing within a year after either the purchase settlement or the completion of the construction of your home.

When are you not entitled to the WA First Home Owner Grant?

You're not eligible for the grant if you or your spouse or de facto partner have:

If you've previously owned property, you might be eligible for the grant. Though, you would have to fit through a gap in the following restrictions:

• Can't have owned residential property in Australia before 1 July 2000

• Can't have owned residential property in Australia on or after 1 July 2000 and occupied that property as a place of residence before 1 July 2004

• Can't have owned residential property anywhere in Australia on or after 1 July 2000 and occupied that property as a place of residence for a continuous period of at least six months that began on or after 1 July 2004

What property transactions are eligible for the grant?

When applying you'll need to make sure that your property transaction is also eligible for the grant.

You can apply if you're purchasing a new home, have signed a contract to build, or if you're building your home yourself as an owner-builder.

While the grant isn't available for the purchase of an established home or for renovations to an existing home, you may still be eligible if you're buying a home that's been 'substantially renovated'.

There is also a cap on the total value of the home and land that qualifies, and this depends on where the home is located.

For homes in the south of the 26th parallel of South latitude, which covers all Perth metropolitan areas, the combined value cap for the house and land is set at $750,000.

A higher cap of $1 million is set for homes north of the 26th parallel.

How to apply for the First Home Owner Grant in Western Australia

You have two options if you're applying for the FHOG in Western Australia.

You can submit your application through an approved agent or lender as you also apply for a home loan or you can submit an application directly to RevenueWA.

Take note of these documentary requirements you need to provide when applying for the grant:

On top of the supporting evidence of property transaction and the application form, you'll need to submit at least one document from each of the categories below, particularly if you're applying through RevenueWA.

• Category 1: Australian Citizenship and permanent residency

  • Australian birth certificate/extract of passport or citizenship certificate

  • Evidence of permanent residency or permanent resident visa or

  • Certificate of Evidence of Resident Status, issued by the Department of Home Affairs

• Category 2: Link between identity and person (only required if applying through RevenueWA)

  • Current Australian driver's licence

  • Current passport (if not used in category 1)

  • Firearms licence

  • Proof of Age card (with photo)

  • Another identity document that includes a photo.

• Category 3: Australian residence (only required if applying through RevenueWA)

  • Medicare card

  • Motor vehicle registration

  • Centrelink or Department of Veterans Affairs card

  • Debit/credit card from a financial institution

  • Similar card or document that shows residence in Australia

If you are married, separated, divorced, widowed, or using a different name for your application, you'll need to provide corresponding documents providing evidence of your name change.

For the purchase of a new home, you'll need to apply for the grant within one year after the settlement date.

For contract-to-build and owner-builder transactions, an application must be lodged within one year of the completion of the home.

When will the grant be paid?

When the $10,000 will be paid depends on the type of transaction and your mode of application.

If you're applying through your lender, the timing of the payment will be according to the following:

• Purchase of a new home: At settlement

• Contract to build: After the first progress payment and after your name is registered on the certificate of title

• Owner-builder: When you provide evidence that the home is ready for occupancy and after your name is registered on the certificate of title

When lodging your application through RevenueWA, you will get the funding when:

• Purchase of a new home: When your name is registered on the certificate of title

• Contract to build: After the first progress payment and after your name is registered on the certificate of title

• Owner-builder: When you provide evidence that the home is ready for occupancy and after your name is registered on the certificate of title

Frequently Asked Questions about Western Australia's FHOG

Here are some of the most commonly asked questions about Western Australia's First Home Owner Grant:

Can I use the grant as a home loan deposit?

In practical terms, $10,000 will not be enough to cover a standard home deposit. It may be able to be used as part of a deposit in some circumstances (depending on your lender).

Bear in mind, however, the timing of the grant's payment is generally not ideal if you're planning to use it for deposit purposes, especially if you're applying directly through RevenueWA.

Will my income impact my application for the grant?

No, your income will not impact your application for the grant.

Western Australia's FHOG isn't means-tested and doesn't have any income-related eligibility requirements.

When applying for the grant alongside a partner, will each of us be able to receive the grant?

The grant is payable per transaction only. This means that two first home buyers involved with the purchase of a single property will only be eligible for one grant.

Can I still apply for the grant even if I have property overseas?

You'll still be eligible for the grant even if you own a property overseas, as long as you've never owned a property in Australia.

Are there any additional incentives or concessions available for first home buyers in Western Australia?

Yes, on top of the FHOG, you may be eligible for other incentives and concessions, including the first home owner rate of stamp duty.

The FHOG can also be combined with existing housing initiatives at the federal level, including the Home Guarantee Scheme.

Where can I find a home loan designed for first home buyers?

Our first home buyer loans page features some of the most competitive interest rates on the market for first home buyers, as well as insights and tips on purchasing your first property.

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