You’ve found a home, signed the contract and made it to settlement. Then the smaller costs start stacking up.
Settlement fees, inspections, loan fees and other charges can all add to the cost of buying your first home.
The Home Buyers Assistance Account (HBAA) is designed to help eligible WA first home buyers recover some of those costs.
It provides up to $2,000 to reimburse certain expenses linked to buying an established or partially built home.
One thing to note: it’s not money for your deposit, and you won’t receive it upfront. You apply after settlement through your lender, and the property must meet the scheme’s eligibility rules.
How does it work?
The HBAA is a WA Government scheme administered by Consumer Protection.
It reimburses eligible first home buyers for some of the costs they have already paid when purchasing their first home.
These costs may include:
- mortgage registration fees
- settlement or conveyancing fees
- valuation fees
- inspection fees
- loan establishment fees
- mortgage insurance premiums
- lending institution fees.
For example, if you paid $800 for a building inspection, $900 in conveyancing fees and $500 in loan establishment fees, you may be able to claim up to the $2,000 limit.
The scheme won’t cover every cost. For example, it does not cover rates or taxes that are split between the buyer and seller at settlement, postage or bank cheque fees.
Who can use it?
To be eligible, you need to meet the rules, including:
- buying your first home in WA
- buying a home for $500,000 or less
- buying the home through a licensed real estate agent in WA
- financing the home through a lending institution, such as a bank, building society or credit union
- buying an established or partially built home, not vacant land, a house and land package or an off-the-plan purchase
- planning to live in the home as your principal place of residence for at least the first 12 months
- lodging the application within 90 days of settlement.
You must also not own, or have previously owned, a home in WA. If you buy with someone who has owned a home in WA before, you may still be able to apply for a partial grant based on your share of the property, if the other eligibility rules are met.
How is it different from other first home buyer support?
The Home Buyers Assistance Account is different from schemes such as the 5% Deposit Scheme or Keystart. It will not help you buy with a smaller deposit or get approved for a home loan.
It also works differently from the First Home Owner Grant, which is aimed at eligible buyers buying or building a new home.
Instead, this scheme can reimburse some of the incidental costs that come with buying a first home.
You may still be eligible for the Home Buyers Assistance Account even if you have received funding from another scheme, but the rules are different for each one.
What should first home buyers know?
While this may not be the biggest first home buyer support option available, having up to an extra $2,000 can still help when several costs land at once.
The key thing to remember is that this is a reimbursement. You will need to pay the costs first, apply after settlement and meet the scheme’s eligibility rules.
You also cannot apply directly. Your lending institution needs to lodge the application on your behalf, generally within 90 days of settlement.
Before applying, read the current eligibility requirements and speak with your lender so you understand what applies to your situation.
