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Everything you wanted to know about Government Grants but were afraid to ask!

If you are a First HomeOwner in 2020 you are in a fantastic position to buy.

House prices are reasonable, interest rates are incredibly low (currently from 2.09%!). Various governments have then provided relief on paying large financial obstacles like Lender’s Mortgage Insurance. There is even a scheme to rebate some of the costs associated with buying like Conveyancing fees and building inspection costs. And now on top of this, the government are supporting purchasers to the value of tens of thousands of dollars: Grants. Gift. Free money!

If you are building, you are even in a better position. And some of the grants apply even if you are not a first homeowner!

Let’s list them, shall we:

  • First Home Owners’ Grant (WA Govt) – Up to $14,400
    1. Stamp Duty Concession – $10,000
    2. Grant
  • HomeBuilder Grant (Federal Govt) – $25,000
  • WA Building Bonus Grant (WA Govt) – $20,000
  • First Home Loan Deposit Scheme (Federal Govt) – 15% LMI paid for you
  • Home Buyers’ Assistance Scheme (WA Govt) – Up to    $  2,000
  • Off-the Plan Duty Rebate – No cap
  • LMI Waiver offers (Individual lenders) – Lots
  • Cashback offers (Individual Lenders) – Up to $  3,000

Of course, in each case there are criteria which you must fulfil.

However, broadly speaking, if you are a first homeowner in WA, buying land and building a home to a value of $400,000 you could pile the offers on top of each other.

That is, in WA you could back the HomeBuilder Grant ($25,000) + WA Building Bonus Grant ($20,000) + FHOG ($10,000) + Stamp Duty concession $6,000 on $200k land price) + LMI Waiver to 85% ATM ($4,000) + Home Buyers’ Assistance Scheme ($2,000) =

$67,000 in bonuses, waivers and grants!


Most grants are limited to one per applicant however in the case of the WA Building Bonus Grant, I have a client building three properties on the one land block (subdividing) and they will be applying for the $20,000 WA Building Bonus Grant for each of the three ie $60,000 in grants.

I have many first homeowners taking advantage of the new HomeBuilder adding the WA Building Bonus Grant, the First HomeOwners scheme and the Home Buyers’ Assistance Scheme. It is lucrative.

What are the pitfalls? Well, as a broker it is important that I ensure that regardless of the incentives, you are able to repay the loan in the long term. There is no use going for a loan which extends you beyond comfort just because incentives exist.

I also guide you to look out for inflated land and building prices. There is no use the grants simply improving the profits of others. I direct my clients to be wary of buying where there are too many other first home owners as it may be difficult to sell later as you‘ll be amongst so many similar properties. Buying a back-block in an established area where you can more accurately gauge the value of the land and how much the property will be worth when completed and whether that value will hold.

We have only touched the surface here, however there is a great deal more to discuss with regard to grants and concessions and special offers and if they pertain to you. For more information, give me a call or make an appointment.

Article by Ignatius Theodos, Aussie Mt Lawley.

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