Article updated as at 3 July
While the program will provide a massive relief to thousands of tradespeople around the country, as well as a much needed boost to the economy and the construction industry - it will also help those Australians looking to turn their plans of a “dream” home into a reality.
Good news, the grant is not just for first time home purchasers.
The cash grants of $25,000 will be available for both existing property owners and first home buyers that want to build a brand new home or substantially improve their existing home.
What is the eligibility criteria?
To access HomeBuilder, owner-occupiers must meet the following eligibility criteria1:
- Be an Australian citizen aged 18 years or older and be an individual, not a company or trust.
- Be on an income of less than $200,000 for couples, and $125,000 for singles.
- Be spending between $150,000 and $750,000 on a renovation for a home that has been previously valued at less than $1.5 million.
- Be building a new home worth less than $750,000 (this includes land value).
What renovations would be allowed?2
To be eligible for HomeBuilder:
- Renovations must improve the accessibility, liveability and safety of the property.
- The value of renovations must be within the price range of $150,000 and $750,000
- The total value of your existing house and land must not exceed $1.5 million
- Construction must commence within three months of the contract date.
The grant cannot be used for additions to the property that are not connected to the home, such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages.
Click here to read more.
If I am eligible for the $25K - are there ways to supplement the grant and access more funds?
If you need extra funds to contribute to your renovation plans, depending on your situation, some options to consider could be a personal loan or even a refinancing your existing loan to get cash out (you may even get a cheaper rate). If you're thinking of applying for a construction loan, we can also help you with this process.
As a first home buyer you may be eligible for other government grants in the process too that could add to the $25k - be sure to do your research on state government based incentives that could further improve your starting point into the market
I’ve been sitting on the fence about buying, if I am eligible for the grant, could I still benefit from buying now?
The good news is that the HomeBuilder scheme is there to complement the existing state and territory other grants and concessions are already available across the country. These include the first home owner grant programs, stamp duty concessions and the First Home Loan Deposit Scheme and First Home Super Saver Scheme.
And, with record low rates it could provide a window of opportunity for those looking to enter the property market.
Will the boost increase house prices?
The HomeBuilder grants should not increase house prices. The scheme is different from the First Home Owners Grant which was rolled out during the global financial crisis in 2009, where it brought forward a lot of demand in 2009 and 2010 and then there was a steep drop off, this scheme is different.
The HomeBuilder grant would boost buying activity but the handout isn’t sizable enough to start a “flood” of activity that would drive up prices.
Where can I apply? Here's a state by state breakdown
For those wishing to access the grant, click here for a state by state breakdown and further information on the eligibility and application processes.3
If you want to stay in the loop and find out more about the HomeBuilder grant and how it could work for you, contact your local Mortgage Choice broker today. They’ll be able to guide you through your options and the process - and can ensure that the best solution for you is also the right fit for your financial situation.
For more information about becoming a First Home Buyer check out our Information Centre.