How to Make the Most of the HomeBuilder Grant
Updated: Nov 11
Earlier in June, the Australian Federal Government established an Economic Response to the Coronavirus which would aim to assist eligible owner-occupiers and first home buyers with building or substantially renovating their home. This initiative is called the HomeBuilder Grant. This initiative offers these eligible groups of people $25,000 to put towards the construction of their home, so long as their contract is signed between the 4th of June 2020 and the 31st of December 2020. Construction must also commence within three months of contract signing.
Here at REIF, we have a range of finance and property specialists that can assist you with making the most of the HomeBuilder Grant. We are also here to help you to access other rewards and savings that may be applicable to your financial situation to assist you in your journey to owning your first home. We have created this guide to help you to understand the HomeBuilder Grant and make the most of this great opportunity before it ends on the 31st of December 2020. This grant is significant for first home buyers as it can be used along with first home buyers grants (that differ in each State and Territory) to put towards your first house.
The Government established a set of guidelines for owner occupiers (and first home buyers) to make the most of the HomeBuilder Grant. To help you to understand if you can access this grant, we have listed the requirements below:
you're a natural person (therefore, not a company or a trust);
you're 18 years of age or older;
you're an Australian citizen;
you meet one of the following two income caps:
$125,000 per annum (for single applicant) based on 2018-2019 taxable income or later; or
$200,000 per annum (for a couple) based on 2018-2019 taxable income or later;
you enter into a building contact between the listed dates above (4/June/2020 - 31/Dec/2020), to either;
build a new home as a principal place of residence where the value of the property doesn't exceed $750,000; or
substantially renovate your existing home as a principal place of residence, where renovation contract is between $150,000 - $750,000. The value of the existing property must not exceed $1.5million, prior to the renovation;
construction must commence within three months of the signing date
What Does It Mean For First Home Buyers?
First home buyers are set to benefit the most from the current initiatives that the State and Federal Governments are offering at the moment. First home buyers can access the HomeBuilder Grant of $25,000, as well as first home buyers grants (which differ in value across different States and Territories). If you live in Queensland, you can access an additional $15,000 to put towards your first property. In New South Wales, this grant is $10,000 and up to $20,000, depending on where you live in Victoria. In the instance that you live in Queensland, you will receive up to $40,000 to put towards building your first home, if you're a first home buyer.
Plus Benefits from Additional Savings
On top of the potential rewards that you can receive from the Government, there are also savings to stamp duty and LMI. In the recent Federal Budget, the Government announced that as part of the First Home Loan Deposit Scheme it was going to support 10,000 lucky Australians in avoiding the costs of paying for expensive lenders mortgage insurance. These people will only be required to put down a 5% deposit towards their first home, as opposed to the typical 20%. In certain states like Queensland, these first home buyers can also avoid paying stamp duty if the price of the house is under $550,000. This means that you can save anywhere up to $20,000 in stamp duty fees!
How Real Estate Investment Finance Can Help You
If you are a wanting to purchase your first property, our friendly team at REIF can help you! We have a team of finance specialists who'll assist you in assessing your current financial situation to meet eligibility requirements. We will then be able to assist you in accessing a suitable loan from our large network of lenders. Once you get your approval, our property specialists will guide you and help you in accessing over 10,000 properties to help you find the right one. We will be there for you throughout this journey to support you in purchasing and owning your very own first home.