Homebuyers grant: Full details of $25k HomeBuilder scheme announced

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on June 04, 2020
Homebuyers grant: Full details of $25k HomeBuilder scheme announced

Photo by Troy Mortier on Unsplash

The full details of the Morrison Government's highly anticipated new HomeBuilder grant have been revealed.

UPDATE: HomeBuilder has been extended, but reduced, until 31 March 2021.

It has been revealed the $25,000 HomeBuilder grant for new home builds and renovations will commence from midnight tonight. 

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). 

Crucially, the tax-free grant will apply to all owner-occupiers - not just first home buyers.

All dwelling types (house, apartment, house and land package, off the plan, etc) will be eligible under the HomeBuilder scheme.  

The scheme will not apply to owner-builders or those who are planning to build a new home or renovate an existing home as an investment property.

Looking to build a new home? The table below features construction home loans with some of the lowest interest rates on the market.

Lender

Variable
More details
GET A DISCOUNTED GREEN RATE
  • 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
Variable
More details
FREE REDRAW FACILITY
  • Pay more to reduce the amount of interest you pay
  • Easily access additional funds in your redraw
  • Great rates and low fees
FREE REDRAW FACILITY

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

  • Pay more to reduce the amount of interest you pay
  • Easily access additional funds in your redraw
  • Great rates and low fees
Variable
More details
BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS
  • Pay more to reduce the amount of interest you pay
  • Easily access additional funds in your redraw
  • Great rates and low fees
BUNDLE YOUR HOME LOAN AND YOUR INVESTMENT LOAN FOR MORE SAVINGS

Yard Investor Bundle Loan (Bundled with Home Loan)

  • Pay more to reduce the amount of interest you pay
  • Easily access additional funds in your redraw
  • Great rates and low fees
Variable
More details
100% FULL OFFSET ACCOUNT
100% FULL OFFSET ACCOUNT

Offset Package Home Loan (Principal and Interest) (LVR < 60%)

    Variable
    More details
    100% FULL OFFSET ACCOUNT
    100% FULL OFFSET ACCOUNT

    Offset Package Home Loan (Principal and Interest) (LVR 60%-70%)

      Variable
      More details
      AN EASY ONLINE APPLICATION
      AN EASY ONLINE APPLICATION

      Yard Investment Loan (Principal and Interest) (LVR < 80%)

        Variable
        More details
        GREAT FLEXIBLE LOAN OPTIONS
        GREAT FLEXIBLE LOAN OPTIONS

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

          Variable
          More details

          Yard Investment Loan (Principal and Interest) (LVR > 80%)

            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 be 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 May 25, 2022. View disclaimer.

            The grant also 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.

            The grant will be offered for contracts entered into between 4 June 2020 and 31 December 2020. Construction must be contracted to begin within three months of the contract date to be eligible.

            The program will be uncapped but the government expects it will cost $680 million, which roughly equates to around 27,000 grants.

            HomeBuilder complements 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.

            Prime Minister Scott Morrison said the scheme aims to spark a 'tradie-led' recovery to help spark the economy, which has just entered its first recession in 29 years.

            Lender

            Variable
            More details
            UNLIMITED REDRAWSSPECIAL OFFER
            • Fast turnaround times, can meet 30-day settlement
            • For purchase and refinance, min 20% deposit
            • No ongoing or monthly fees, add offset for 0.10%
            UNLIMITED REDRAWSSPECIAL OFFER

            Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

            • Fast turnaround times, can meet 30-day settlement
            • For purchase and refinance, min 20% deposit
            • No ongoing or monthly fees, add offset for 0.10%
            Variable
            More details
            AN EASY DIGITAL APPLICATION
            • No ongoing fees - None!
            • Unlimited additional repayments
            • Easy online application, find out if you're approved quick!
            • Redraw- Access your additional payments if you need them
            • Use the app to get loan insights to help you pay off your home loan faster
            AN EASY DIGITAL APPLICATION

            Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

            • No ongoing fees - None!
            • Unlimited additional repayments
            • Easy online application, find out if you're approved quick!
            • Redraw- Access your additional payments if you need them
            • Use the app to get loan insights to help you pay off your home loan faster
            Variable
            More details
            100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
            • No upfront or ongoing fees
            • 100% full offset account
            • Extra repayments + redraw services
            100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

            Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

            • No upfront or ongoing fees
            • 100% full offset account
            • Extra repayments + redraw services
            Variable
            More details
            NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
            • No upfront or ongoing fees
            • 100% full offset account
            • Extra repayments + redraw services
            NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

            Variable Home Loan (Principal and Interest)

            • No upfront or ongoing fees
            • 100% full offset account
            • Extra repayments + redraw services

            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 be 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 May 25, 2022. View disclaimer.

            “Our JobMaker program is backing a tradie-led recovery to help spark the economy as Australia emerges from the effects of COVID-19,” Prime Minister Scott Morrison said.

            “If you’ve been putting off that renovation or new build, the extra $25,000 we’re putting on the table along with record low interest rates means now’s the time to do it.

            “This investment isn’t just about helping Australians bring their dream home to life, it’s about creating jobs and helping support the more than one million workers in the sector including builders, painters, plumbers and electricians across the country.”

            Master Builders Australia welcomed the news, saying that it will provide a massive relief to thousands of tradies around the country.

            “HomeBuilder will be a lifeline for an industry facing a valley of death in the coming months. It will mean more new homes, more small businesses and jobs are protected and provide a stronger bridge to economic recovery for our country,” Denita Wawn, CEO of Master Builders Australia said.

            “Based on the Government’s estimated 27,000 grants, we think the scheme will be used for $10 billion in building activity, supporting the viability of 368,000 small builders and tradies – the businesses which employ 800,000 people in communities around Australia.

            “The lag effect of building activity means that HomeBuilder comes just in time for builders and tradies staring out at a valley of death with forward work for the next 6 -12 months fast evaporating."

            Tasmanian government increases grant 

            The Tasmanian state government has topped up the Morrison government's $25,000 HomeBuilder grant with an extra $20,000.

            "This will be open for the next six months from today and I am so very pleased that the Federal Government are making a $25,000 injection as well, meaning that there will be for those who qualify, $45,000 available if you're going to build a home in Tasmania," Tasmanian Premier Peter Gutwein said.

            "That $45,000, you'll need to sign up to a contract from today and before the end of December, you will need to be able to begin construction within three months and then you'll have two years to complete that construction.

            "There has never been a better time to build a house in Tasmania ever."

            The state government will also commit $100,000 to deliver an additional 1,000 new social houses. 


            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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            author-avatar
            Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

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