Keypoints/summary

  • The Federal Government's June 4 announcement of the HomeBuilder Grant looks promising for people looking to fuild a new home or renovate an exiting home
  • Find out if you are eligible
  • Find out how it can make things easier for home builders and renovators
  • How we can help you

The Federal Government’s June 4 announcement of the HomeBuilder Grant looks promising, especially for people looking to build a new home. 

HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. 

Designed to support the construction industry, affected by COVID-19, the full process for getting the grant is yet to be made public however there are clear rules for eligibility.

Am I eligible? 
The criteria for eligibility are based on the value of your property, the cost of your renovation or build and your income. 

If you’re planning on building a new home or purchasing a home and land package you will need to make sure it’s your principal place of residence and that the total cost of the property, including land, does not exceed $750,000. 

Thinking about using the grant to renovate? Again, it will have to be your principal place of residence and will have to be a substantial renovation of between $150,000 and $750,000, as long as your existing property value doesn’t exceed $1.5 million. 

In terms of income, you need to earn below $125,000 individually or earn a maximum of $200,000 as a combined household income. 

The final eligibility criteria is time-based. To be eligible, building contracts must be signed between 4 June 2020 and 31 December 2020. The good news here is that it does apply from June 4, so even though not all details of the scheme are known existing contracts may be eligible.

More details to come… 
The Government has yet to announce details about how the scheme will be administered and if the grant can be viewed as savings or equity when applying for or refinancing a home loan.

Making it easier for home buyers and renovators 
People planning to purchase a home and land package or begin a build in the next 6 months may benefit from HomeBuilder. 

First home buyers could also be real winners here as they may be eligible to combine this grant with the Victorian State Government’s First Home-Owner Grant and Stamp Duty exemption. 

If renovating your current home has been on your mind you may have built up the equity in the property, which you could use to refinance your existing loan, opening up funds for a renovation.

We can help you
Even though there are some details to work out, we can help you begin the home loan process today. 

Whether you’re a first home buyer, or ready to extend your home to get some more space, we have a range of home loans to meet your needs, with competitive rates, and no ongoing monthly fees. Our Mobile Lenders and Home Loan consultants can help you every step of the way. So, if you’re thinking about taking advantage of HomeBuilder, contact us today on 13 63 73. 

For more information about Homebuilder visit: 
sro.vic.gov.au/news/homebuilder-grants-eligible-owner-occupiers 
treasury.gov.au/coronavirus/homebuilder

The information in this article is current as at 16 June 2020. Normal lending criteria applies to all loan applications. The information in this article is general in nature and does not take into account your personal situation or needs.. Please consider whether it is appropriate for you before acting on this information. Police Financial Services Limited ABN 33 087 651 661 – trading as BankVic AFSL 240293 Australian Credit Licence 240293.