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.
Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 14 July 2020. 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.
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 2019. They are (in descending order): Credit Union Australia, 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 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
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 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.
*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.
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