First Home Buyer Grants and Concessions: Purchasing your first home is an exciting milestone, but navigating the financial aspects can be challenging. At Index Finance, we specialize in helping first-time buyers understand and take advantage of government incentives, including the First Home Owner Grant (FHOG) and the First Home Owner Rate (FHOR) of Duty. These programs are designed to make homeownership more accessible and affordable.
In this guide, we’ll break down these grants and concessions, eligibility criteria, and how we can help you make the most of them.
What Is the First Home Owner Grant (FHOG)?
The First Home Owner Grant is a one-off payment intended to assist first-time buyers with the purchase or construction of a new home for use as their primary residence.
Key Details:
• Grant Amount: $10,000 or the consideration paid for the home, whichever is lower.
• Eligibility: Available for buyers of new homes or substantially renovated properties.
• Limitations: Only one grant is payable per eligible transaction, even if multiple buyers are involved.
What Is the First Home Owner Rate (FHOR) of Duty?
The FHOR of Duty is a concessional rate of stamp duty available to eligible first home buyers purchasing a home or vacant land.
Eligibility:
• You must qualify for the FHOG or meet related criteria under the First Home Owner Grant Act 2000.
• The dutiable value (value of the home or land) must fall within specific thresholds.
Dutiable Value Thresholds (for Transactions After 9 May 2024):
• For Home and Land Together:
• No duty for values up to $450,000.
• Concessional rate of $15.01 per $100 for values between $450,000 and $600,000.
• For Vacant Land:
• No duty for values up to $300,000.
• Concessional rate of $13.01 per $100 for values between $300,000 and $400,000.
Example:
If the dutiable value of your home is $500,000, you’ll pay $750 in duty ($15.01 per $100 for $50,000 above $450,000).
Foreign Transfer Duty Considerations
Foreign persons purchasing property may still be eligible for the FHOR, but additional foreign transfer duty may apply.
Example:
Kate (an Australian citizen) and Simon (a foreign resident) purchase a home for $400,000.
• They qualify for the FHOR and pay no transfer duty.
• However, Simon must pay $14,000 in foreign transfer duty on his 50% share.
How Index Finance Can Help You
At Index Finance, we simplify the process of accessing grants and concessions:
1. Eligibility Assessment: We evaluate your financial situation to determine which grants and duty concessions you qualify for.
2. Application Assistance: From completing the FHOG application to submitting FHOR documents, we ensure everything is accurate and timely.
3. Loan Matching: We help you secure a home loan that complements the grants and concessions you receive.
4. Reassessments: If you’ve overpaid duty, we guide you through the reassessment process to claim a refund.
Key Steps to Apply for the FHOG and FHOR
1. Complete the Application: Submit Form F-FHOG1 to an approved financial institution or RevenueWA.
2. Approval Letter: If eligible, RevenueWA will issue an approval letter and Form FDA7.
3. Submit Required Documents: Provide the necessary forms, contract of sale, and any additional documentation to your settlement agent or RevenueWA.
Maximize Your First Home Benefits with Index Finance
Navigating the rules and requirements for first home buyer grants and concessions can be complex, but you don’t have to do it alone. At Index Finance, we ensure you make the most of these opportunities, guiding you through every step of the process.
Ready to take the first step toward homeownership? Contact us today to learn more about how we can help you access first home buyer grants and find the right mortgage for your needs.
Meta Description: Learn about First Home Owner Grants (FHOG) and concessional stamp duty rates (FHOR). Index Finance helps first-time buyers in Australia access grants and secure affordable mortgages.
