If you have taken out a home loan in Perth, you may have heard about Western Australia’s First Home Owner Grant (FHOG). Exactly what is the FHOG? How much money can you get? What are the qualifications? Does everybody get the same amount?
We would like to cite and explain the important parts of FHOG and we hope that all first-home buyers are able to use this great resource.
What is FHOG?
FHOG was created by the Western Australian Government and it was designed to help defray the higher costs associated with housing due to the Goods and Services Tax, which was introduced on 1 July of 2000.
The FHOG provides a one-off payment of $7,000 for people buying their first homes. Those who buy an established home or build a new home are eligible, as long as it is a residential dwelling. FHOG cannot be applied to business premises, vacant land or holiday houses. In addition, it cannot be used for renovations to your existing home.
How to apply
You can obtain an application form from an Approved Agent, such as any lender, or you can obtain it online from https://www.finance.wa.gov.au/. You can’t apply until you produce a contract to build or purchase a home, which has been dated and signed by the buyer and the seller in front of an appropriate witness. If you are having a home built, you become eligible when the builder has laid the foundations.
It is important to note that you have 12 months from the day the transaction was completed to apply for your $7,000. The application can be submitted to the Office of State Revenue or completed through an Approved Agent. Your financial institution can tell you the right place to send your application.
Who is Eligible?
While this program is designed to help as many people as possible buy their first homes, there are some requirements that must be met. Among the regulations: you must be a person, not a trust or a company–and at least 18 years of age. One person on the application has to be a permanent resident or an Australian citizen at the time they submit the application.
Call (08) 9472 9766 today to learn more about first-home loans.