HomeBuilder: All states and territories signed on, Tasmania accepting applications

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on July 08, 2020
HomeBuilder: All states and territories signed on, Tasmania accepting applications

Photo by Brett Jordan on Unsplash

The Federal Government has come to an agreement with each state and territory to begin the HomeBuilder scheme.

The $25,000 grant was announced on June 4 to those building a new home or undertaking significant renovations, subject to eligibility criteria. 

Several state politicians had expressed concerns with the schemes administration and implementation, but the Treasury announced all states and territories were now signatories to the HomeBuilder National Partnership. 

Looking to build your own home? The table below features construction loans with some of the lowest interest rates on the market for would-be home builders.

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
GET A DISCOUNTED GREEN RATE

Green Construction Home Loan (Interest Only)

  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
GET A DISCOUNTED GREEN RATE

Green Construction Home Loan (Interest Only)

  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
VariableMore details
FREE REDRAW FACILITY

Basic Home Loan (Principal and Interest) (LVR 70%-80%)

FREE REDRAW FACILITY
VariableMore details
AN EASY ONLINE APPLICATION
  • No application fee
  • Unlimited additional repayments
  • Unlimited free redraws
AN EASY ONLINE APPLICATION
VariableMore details

Rocket Repay Home Loan (Interest Only)

VariableMore details

Standard Variable Home Loan (Interest Only)

VariableMore details

Standard Variable Home Loan (Interest Only)

VariableMore details

Standard Variable Rate Home Loan (Principal & Interest)

VariableMore details
FAST TURNAROUND TIMES AND FLEXIBLE LOAN OPTIONS

Basic Investment Loan (Principal and Interest) (LVR < 60%)

FAST TURNAROUND TIMES AND FLEXIBLE LOAN OPTIONS

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of January 22, 2022. View disclaimer.

Tasmania has been the first to announce it was now accepting applications for the Federal grant, as well as the $20,000 Tasmanian HomeBuilder Grant, available to those building new homes. 

Queensland said an online application for the Federal grant would be available shortly for contracts signed between 4 June and 31 December 2020. 

The Australian Capital Territory said information on the application process for the grant would be available online from the week beginning 13 July. 

Information on eligibility and application processes for all other states and territories will reportedly be available shortly through their respective websites.

To be eligible for the HomeBuilder scheme, you must:

  • 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). 

Read up on how to finance your HomeBuilder construction here

HomeBuilder driving record new housing demand

Data from realestate.com.au (REA) has revealed enquiries for new developments have surged since the announcement of HomeBuilder. 

The new REA Insights New Homes Snapshot for July shows enquiries to developers nationally jumped by almost 63% in June, with land estate enquiries experiencing a 93% lift over the month.

REA Group Executive Manager – Economic Research Cameron Kusher said the spike in June followed a 53.9% increase in May, suggesting the announcement of HomeBuilder led to a further surge in the already increasing interest in new properties.

“I expect to continue seeing high levels of enquiry to developers as buyers look to capitalise on government incentives and historic low borrowing costs that are currently available,” Mr Kusher said.

“First home buyer activity increased 28.5% in June when looking specifically at email enquiry on realestate.com.au, and it’s likely some of this activity was a result of the HomeBuilder stimulus announcement.

“It’s no surprise that land estate new development is benefiting from HomeBuilder given the package is geared towards new builds, there are restrictions on construction timeframes that inhibit apartment development, and the Australian dream is to own a house.”


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Alex joined Savings.com.au as a finance journalist in 2019. He enjoys covering in-depth economical releases and breaking down how they might affect the everyday punter. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

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