First Home Buyers Reap the Benefits of the new HomeBuilder Grant

First Home Buyers Reap the Benefits of the new HomeBuilder Grant

The federal government has announced a new $700 million housing stimulus package called HomeBuilder, in an attempt to rescue the economy from its Covid-19 induced recession.

The $25K grant will be for new home builds and refurbs of existing houses but you will only qualify if you meet the following criteria:

  • Be an Australian citizen aged 18 years or older and be an individual, not a company or trust.
  • You are spending $150,000 – $750,000 on a renovation for a home that has been previously valued at less than $1.5 million.
  • Your new home build has to be worth less than $750,000 (including land value)
  • You satisfy the income test:
    • Singles must be earning $125,000 or less based on their 2018/19 tax return or later
    • Couples must have a combined income of less than $200,000 based on their tax returns

Also, the works must improve the accessibility, safety and liveability of the dwelling. So, no grants for additions to the property that are unconnected to the residence such as tennis courts, outdoor spas and saunas, sheds or garages.

The HomeBuilder grant will be available for any contracts entered into between 4 June 2020 and 31 December 2020.

This new grant is open to owner-occupiers (not just first home buyers), however First Home Buyers will reap the biggest rewards, with the ability to add HomeBuilder to existing Commonwealth and state incentives already on offer like the:

First Home Loan Deposit Scheme

This guarantees mortgages for first home buyers who have as little as a 5 per cent deposit. The government stands as guarantor for the remaining 15 per cent, which effectively helps them buy sooner without paying lenders mortgage insurance premiums, which can add up to $10,000.

First Home Super Saver Scheme (FHSS)

The FHSS scheme allows you to save up to $30,000 for your first home inside your super fund.

Depending on the state, a First Home Buyer could receive grants and incentives totalling as much as $55,000. We’ve outlined below the potential benefits: 

QLD - Access up to $50K

State first homeowner’s grant: $15,000
First Home Loan Deposit Scheme: Up to $10,000

NSW - Access up to $45K

State first homeowner’s grant: $10,000
First Home Loan Deposit Scheme: Up to $10,000

VIC - Access between $45K & $50K

State first homeowner’s grant: $10,000 – $20,000
First Home Loan Deposit Scheme: Up to $10,000

ACT - Access up to $35K

Territory first homeowner’s grant: None, the ACT has the Homebuyer Concession Scheme instead
First Home Loan Deposit Scheme: Up to $10,000

SA - Access up to $50K

State first homeowner’s grant: $15,000
First Home Loan Deposit Scheme: Up to $10,000

TAS - Access up to $55K

State first homeowner’s grant: Up to $20,000 First Home Loan Deposit Scheme: Up to $10,000

WA - Access up to $45K

State first homeowner’s grant: $10,000
First Home Loan Deposit Scheme: Up to $10,000

NT - Access up to $45K

Territory first homeowner’s grant: $10,000
First Home Loan Deposit Scheme: Up to $10,000

To take advantage of this new grant, speak to one of our finance consultants today.  We have access to over 40 lenders Australia wide and with interest rates at an all time low, there’s plenty of options available!

Source: www.news.com.au

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