I’m interested in accessing the $25,000 construction grant – am I eligible?
To access the Federal Government HomeBuilder Grant you will need to:
- Be over 18 years of age.
- Be an Australian Citizen.
- Be an individual and not a company or trust.
- Earn less than:
- $125,000 per annum as an individual or
- $200,000 per annum as a couple
Are there any restrictions on eligibility I need to be aware of?
- You will need to sign a contract with a builder between 4th June and 31st December 2020 to:
- Build a home that is valued at no more than $750,000 for the house and land in total
- Substantially renovate your existing home with renovations valued at between $150,000 and $750,000, with the dwelling not valued at more than $1.5 million before you commenced the renovation
- Your new home will need to start construction within 3 months of signing your building contract.
How do I apply?
The application process is still pending the Victorian State Government response on how the State Revenue Office (SRO) will facilitate the application process so get in touch with our partners at Resolve Finance who will be able to help you prepare for moving through the process smoothly.
When do I apply?
Applications must be made no later than 31st December 2020.
Is the $25,000 grant available if I’m not a first homebuyer?
Yes, the great news is the HomeBuilder Grant is available to first and subsequent homebuyers!
What about if I’m an investor?
No, the HomeBuilder grant is not available for investors.
If I’m a first homebuyer do I still get the First Homeowners Grant too?
The good news is first homebuyers also qualify for the First Homeowners Grant which is $10,000 in metropolitan Melbourne and $20,000 in regional Victoria. So you will receive this in addition to the HomeBuilder grant. To qualify for the First Homeowners Grant you will need to:
- Be over 18 years of age
- Be an Australian Citizen or Permanent Resident
- Be planning to live in your home for the next six months
- Have never owned a residential property in Victoria or anywhere else in Australia
- Have never received the grant anywhere in Australia before
I’m not an Australian Citizen but my partner is, are we eligible?
To access the First Home Buyer Grant, at least one applicant must be an Australian citizen or permanent resident. To access the HomeBuilder grant, all applicants must be Australian Citizens.
Can I use HomeBuilder towards my deposit?
This depends on the policy of the lender. We recommend contacting our trusted partners at Resolve Finance here who will talk you through your options.
When do I receive the grant money from the Government?
The documentation we have to hand from the Government indicates the grant will be paid at slab down, which is once the concrete pad is laid for your new home.
I was thinking about knocking down an old home and building a new one, can I do that and receive the grant?
Yes, great news you can. So long as the property you knock down was not valued at more than $1.5 million prior to commencing your new build, you spend between $150,000 – $750,000 and you meet the eligibility criteria above.
I’m looking at buying a display home, can I apply for the grant?
No, unfortunately not. If the display home is already built you will not be able to access the HomeBuilder grant. If the home has not commenced and you plan to purchase the display home as an investment, you also will not be eligible for the grant.
You mention our new build must start within 3 months of signing the contract. What does that mean?
At this stage what we understand is it means you must have a building permit issued & temporary fencing around the site, but we are seeking clarification on this at this time. We recommend getting in touch with our team to be the first to know the detail once we have this information to hand.
What if there are delays?
In choosing a builder and finance partner it will be really important to select one who is upfront and transparent with all the information you need to feel really comfortable your builder has the capability to get your new home to site within 3 months and a finance partner who can process your application to formal approval with plenty of time to get your home to slab down stage so you can access the grant. Choosing a block of land which will be ready to build on within the required timeframe is also vital to meet the eligibility requirements as delays in your block being ready to build on could affect overall timelines.
What if my land title is delayed?
Delays in titles will jeopardise your ability to access the grant and are out of our control. We can however help you source titled land through our developer networks to give you best chance of meeting the deadlines.
Does the $750,000 building contract limit include variations?
Yes, it’s important to know that you will not be able to make variations to your building contract that would exceed the total limit of $750,000. However, stamp duty is excluded from this.
Why is now a good time to build?
Interest rates are at historic lows and the HomeBuilder grant is available for a limited time so now is a great time to understand your options for building your dream home.
What if I’ve already signed a building contract, can I still access the grant?
Unfortunately not. The Government advice is very clear that any contracts signed before June 4th 2020 will not be eligible for the HomeBuilder grant.
*Information on this page does not consider your personal needs and financial circumstances and you should consider whether it is appropriate for you. Lenders terms and conditions apply and may vary. Eligibility is at the discretion of State and/or Federal Government, further Federal information here and State here (VIC). All Financial services provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN: 65 079 545 378 Australian Credit Licence No. 385487. Please refer to the relevant State & Federal Government media statements using the below links:
WA State Government
https://www.mediastatements.wa.gov.au/Pages/Default.aspx
VIC State Government
https://www.premier.vic.gov.au/category/media-release/