All you need to know about the Homebuilder Grant

Here’s how homeowners and home buyers could receive a whopping $15K cash grant under the federal government’s newly announced HomeBuilder program

Contact your local broker to find out if you're eligible today

Article updated as at 18 January 2021

Great news! The popular HomeBuilder grant has been extended beyond 31 December. Here’s what you need to know about funding your dream home.

It’s great news for your property goals! Already, HomeBuilder has helped fund 27,000 dream homes and yours could be next!

By extending HomeBuilder to 31 March 2021, an additional 15,000 homes are expected to be constructed to receive a major revamp.1

The question is, how can you benefit? 

The fine print

HomeBuilder is now available for all eligible new building contracts signed between 1 January 2021 and 31 March 2021.

However, new conditions apply. 

From 1 January 2021, HomeBuilder will be worth $15,000 – down from $25,000. That’s still a very handy sum – it could pay for your new bathroom!

New home buyers or renovators in NSW and VIC have extra reason to celebrate! From 1 January 2021, the HomeBuilder property price caps for eligible new builds will be increased from $750,000 to $950,000 (NSW) and $850,000 (Victoria).

For more information on the HomeBuilder extension visit treasury.gov.au

What’s the eligibility criteria?

To access the HomeBuilder scheme, owner-occupiers must meet eligibility criteria including2:

  • Being an Australian citizen aged 18 years or older, and being an individual, not a company or trust.
  • Earn annual income below $200,000 for couples, and $125,000 for singles.
  • Have a renovation budget between $150,000 and $750,000 for established homes valued at less than $1.5 million (pre-improvements).
  • Build a new home costing less than $950,000 in NSW (includes land value); $850,000 in Victoria; or $750,000 in all other States and Territories.

For more information around eligibility visit homebuilder.gov.au

Which renovations are eligible?

For home improvements to be eligible for HomeBuilder:

  • Renovations must improve the accessibility, live-ability and safety of the property.
  • The value of renovations must be between $150,000 and $750,000

Not all renovations are eligible for HomeBuilder. The grant cannot be used for additions not connected to your home such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages. Click here to read more.

Frequently asked questions

For sure! If you’re a first home buyer you may also be eligible for other government grants when you buy/build a new home. It could mean you’re entitled to much more than the HomeBuilder grant!

If you plan to renovate, you may qualify for a personal loan, or be eligible for a cash out on your existing home loan.

If you need extra funds for your renovation plans, there is a range of options to consider depending on your situation – from a personal loan through to refinancing your existing home loan (you may even get a cheaper rate). Or, you may want to consider a construction loan.

The main point is that your Mortgage Choice broker can crunch the numbers to help you decide the best option for your situation.

Yes! The good news is that the HomeBuilder grant complements existing schemes and concessions available in your state/territory. These include First Home Owner Grants, stamp duty concessions, the First Home Loan Deposit Scheme and the First Home Super Saver Scheme.

 Long story short, all these grants and schemes combined with the lowest home loan interest rates in history, are providing an amazing window of opportunity to enter the property market.

The HomeBuilder Grant can be used as a deposit in some cases, although it is up to each individual lender's policy when determining if the HomeBuilder Grant will be accepted as genuine income/savings to go towards a deposit. 

To understand further if you can use the HomeBuilder grant as a deposit with your lender, it is best to speak to your local Mortgage Choice broker

For further information on the eligibility and application processes visit homebuilder.gov.au

Get in quick. Deadlines are fast approaching!

It’s fantastic that HomeBuilder has been extended for another three months. But time flies!

Act now to learn more about HomeBuilder and how it could work for you.

Contact your local Mortgage Choice broker today to get the ball rolling! Your broker can guide you through your options – and the application process, to find the solution that’s the best fit for your financial situation.

For more information about becoming a First Home Buyer check out our Information Centre.

For details of the recent changes to HomeBuilder visit treasury.gov.au.

During times of change expert advice matters.

or

You may also be interested in:

HomeBuilder extension - Frequently Asked Questions

The Government's 2020 First Home Loan Deposit Scheme

4 ways to make the most of the $15,000 HomeBuilder grant

1 https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/homebuilder-success-sees-programme-extended
2 https://treasury.gov.au/coronavirus/homebuilder


MC Eguide FHB Grants 255X360

First home buyer 2021 grants guide

If you're looking at buying your first home it's worth knowing what Government help is available. This guide will walk you through all the grants and schemes to help you save.


Download now