Which states are offering their own HomeBuilder grants?

author-avatar By on June 08, 2020
Which states are offering their own HomeBuilder grants?

Photo by Kelly Sikkema on Unsplash

There's a federal $25,000 HomeBuilder grant up for grabs, but certain states have offered their own construction stimulus packages too.

Announced with much hype, the Morrison Government's 'HomeBuilder' grant was revealed in early June, and provides a $25,000 grant for home builders who meet certain criteria.

Housing Minister Michael Sukkar told The Australian that more than 8,000 households have already registered interest in the scheme as of 8 June, with more than half coming from Victoria and Queensland.

Tradie service directory hipages has already observed a spike in requests for renovations and home extensions.

Job numbers posted in its 'Renovations' category on 8 June were 4.4 times higher compared to listings on the previous Thursday.

It was 6.5 times higher in the 'Home Extensions' category.

However, the scheme has come under fire for only being offered to a fairly niche subset of people, while not addressing other issues such as social housing or housing affordability.

Now some states opened up their own coffers for their own 'HomeBuilder' grants to a much wider variety of people.

Click below to see what's on offer in your state.

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner-occupiers.

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

VariableMore details
LIMITED TIME 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%
LIMITED TIME 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%
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
FixedMore details
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

NO UPFRONT OR ONGOING FEES

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. Rates correct as of October 26, 2021. View disclaimer.

Tasmania home builder grant

On Thursday 4 June the Tasmanian Government announced it is expanding its first home builders 'construction blitz' scheme.

Now, the Government will commit $20,000 for any owner-occupier to build a house from 4 June until the end of the year, with the build to be completed within 18 months.

Previously, the plan was only open to first home buyers but now is open to all owner-occupiers.

The office of the Premier of Tasmania says the scheme will cost $20 million, with an estimated construction value of $400 million.

Tasmanian Premier Peter Gutwein outlined some criteria for those wishing to access the grant.

"You will need to sign a contract from today [4 June] until the end of December - you will need to be able to begin construction in three months," he said.

"Then you'll have two years to complete that construction."

Eligible owner-occupiers could access up to $45,000 if they use both the state and federal HomeBuilder grants.

More details and eligibility criteria for Tasmania's grant will be released on 9 June.

Western Australia 'Building Bonus' grant

On 8 June, the Western Australian Government announced a $125 million home building stimulus package. 

Part of this is a $117 million 'Building Bonus' scheme, with both owner-occupiers and investors building a new house eligible for a $20,000 grant.

Homebuyers who purchase a single-storey property already in construction - such as a new townhouse development - may also apply.

The scheme is not means-tested and there is no property value cap, unlike the federal HomeBuilder scheme.

Premier Mark McGowan said the scheme provides a 'pipeline' of work for local construction companies and tradies.

"As a result of our budget management over the last three years, we have the flexibility to respond to the COVID-19 pandemic and help support our local economy," he said.

"WA's residential building industry makes a significant contribution to our economy and community, so it's important we help protect, support and create new jobs in this space."

Grants are available from 4 June up until the end of the year.

Eligible homebuyers could access up to $45,000 if they use both WA's Building Bonus and the federal HomeBuilder grants.

Queensland extended first home owner grant

On 16 June the Queensland Government reaffirmed its $15,000 first home owner's grant (FHOG).

The Government also introduced a new $5,000 additional FHOG for those building in regional areas.

The FHOG applies to any first home buyer purchasing a new home worth less than $750,000.

Those living in or moving to a regional area could get up to $20,000 if they build their first home. 

Queensland Premier Annastacia Palaszczuk said the grant forms part of a wider $6 billion stimulus package focused on jobs creation.

“It is already kick-starting Queensland by bringing forward greater and significant investment in infrastructure and my government is joining with Queenslanders to unite and to recover and finish the job of economic rescue together," she said.


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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