Great news, the Federal Government have announced an extension to the HomeBuilder grant! HomeBuilder is a time-limited grant program to help the residential construction market to bounce back from the Coronavirus crisis. HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home where the contract is signed between 4 June 2020 and 31 December 2020. This grant has now been extended to include a $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
The Government also extended the deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
The Government also made an extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020. For NSW builds there has also been an increase to the property price cap for new build contracts to $950,000, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
Other than the above, the existing program criteria applies. That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.
HomeBuilder will complement existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
ELIGIBILITY: To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
- you are a natural person (not a company or trust);
- you are aged 18 years or older;
- you are an Australian citizen;
- you meet one of the following two income caps:$125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- you enter into a building contract between 4 June 2020 and 31 March 2021 to build a new home as a principal place of residence, where the property value does not exceed $950,000;
- construction must commence within six months of the contract date.
READ MORE: HOMEBUILDERDOWNLOAD FACT SHEET DOWNLOAD FAQS
FIRST HOME LOAN DEPOSIT SCHEME
The Australian Government has announced an additional 10,000 First Home Loan Deposit Scheme places will be provided for the 2020-21 financial year, to support the purchase of a new home or a newly built home.
The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase their first home sooner.
Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a modest home with a deposit with as little as 5 per cent (lenders criteria also apply). This is because NHFIC guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.
There are currently 27 participating lenders across Australia offering places under the First Home Loan Deposit Scheme.
ELIGIBILITY: To access the First Home Loan Deposit Scheme, purchasers must meet the following eligibility checks:
- an income test;
- a prior property ownership test;
- a minimum age test;
- a deposit requirement;
- an owner-occupier requirement;
- property price caps
READ MORE: FIRST HOME LOAN DEPOSIT SCHEMEVIEW GOVERNMENT ANNOUCEMENT
FIRST HOME BUYER ASSISTANCE SCHEME
If you’re a first home buyer, you may be entitled to a concessional rate of transfer duty or even an exemption from paying it altogether under the First Home Buyers Assistance scheme (FHBAS).
ELIGIBILITY: the grant is available for:
- buying an existing home
- buying a new home and
- vacant land on which you intend to build a home.
READ MORE: FIRST HOME BUYER ASSISTANCE SCHEME
FIRST HOME OWNER GRANT (NEW HOMES) SCHEME
If you’re a first home buyer and you’re buying or building a new home, you may qualify for a $10,000 grant under the First Home Owner Grant (New Homes) scheme.
ELIGIBILITY: the grant is available for:
- contract to buy a new home
- building contract by the owner of the land
- owner of the land building their own home.
READ MORE: FIRST HOME OWNER GRANT (NEW HOMES) SCHEME