HomeBuilder Grant Extends Into 2021

The recent extension of the federal HomeBuilder Grant means that buyers can build the house of their dreams for less – but first, what do you need to know?  

As our nation is one of many to suffer from the economic fallout of the coronavirus, in turn the Australian economy has plunged into its first recession in almost thirty years. In an effort to minimise the damage, the government and Prime Minister Scott Morrison released a range of different grants earlier in the year to stimulate spending and keep our key sectors ticking over – one of which being the HomeBuilder Grant. 

Designed to keep the construction industry moving – which actually employs 1 in 10 Australians – HomeBuilder was announced on June 4, 2020. Along with tackling the predicted shortfall of new dwellings in the second half of 2020, the scheme was also designed to keep more people employed and to stop the building industry from collapsing. If applicants are able to meet the required criteria, they could pocket $25, 000 to go towards building a new home or undertaking significant renovations – so what do you need to know to access it?

Everything You Need To Know About The HomeBuilder Grant 

When it comes to building or buying a property, any monetary concession is usually a welcome one. The even better news? Depending on your individual circumstances, HomeBuilder can also be combined with other government funding such as the Regional Home Building Boost Grant or the First Home Owners Grant. 

If HomeBuilder sounds like something that may apply to you or perhaps spark your interest, then the key points to meet in terms of eligibility include the following:

• You must not have previously received a HomeBuilder Grant in any state or territory of Australia
• You must be at least 18 years of age (companies and trusts cannot apply)
• You must be an Australian citizen at the time of application 
• Your 2018-19 or 2019-20 annual taxable income must be below:
  • $125,000 for an individual
    or
  • $200,000 for a couple

• You will be the registered owner on the title
• The home will be your principal place of residence after completion or settlement
• The contract is signed between 4 June 2020 and 31 December 2020 to:
  • buy an off-the plan or new home valued at $750,000 or less (including GST) and construction had not started before 4 June 2020
    or
  • build a new home where the build amount and the value of the land (including any existing structures) is $750,000 or less (including GST)
    or
  • substantially renovate an existing home, where
    • renovations cost between $150,000 and $750,000 (including GST)
      and
    • value of property (home and land before renovation) is less than $1.5 million.

However, with 2021 rapidly approaching and the global pandemic not showing signs of slowing down anytime soon – the Morrison government have extended HomeBuilder, but there are some noteworthy changes to pay attention to before you apply. 

HomeBuilder Grant 2021: What’s Changed 

If you’re in the position to potentially build a brand new home next year, then the good news is that the HomeBuilder Grant is still available to you. Unfortunately, there have been some amendments though, and applicants should be aware of some of the more significant changes to the scheme before they apply. The primary changes made to the HomeBuilder program include:

• A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
• An extended deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
• An extension to the construction commencement time frame from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
• An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
  • The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
• A change in licensing requirements and registration for builders and developers, as below
  • Where an eligible contract is signed on (or after) 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
  • Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.

Other than the above, the existing program criteria applies – meaning that the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.

Where To Learn More About The HomeBuilder Grant 

Whether it’s your first or tenth home, obtaining the finance to do so can be a time consuming and stressful exercise. The good news is that it doesn’t have to be, so do yourself a favour and get your pre-approval sorted before you dive down the property rabbit hole. 

Since their inception in 2012, Madd Loans have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, George takes great pride in making the mortgage process both fun and educational – and he has a swag of awards to prove it. 

If thinking about navigating government grants, mortgages or even your overall financial future strikes a chord with you, then it might be time to speak to a professional. Whether you’re chasing mortgage solutions or a financial fairy godmother, the team at Madd work together as a collective to turn your goals into reality.