In a recent announcement, the Federal Government has revealed that the HomeBuilder grant will be sticking around a little longer, with an extension until 31 March 2021.
With this exciting news, buyers looking to build a new home or existing home owners wishing to substantially renovate their home (with a minimum spend of $150,000) in the new year will be eligible for a $15,000 grant under the new grant terms. Alongside the reduced grant amount, there are some other changes the Government has made to the program.
We’ve broken these changes down below:
- The grant amount has been reduced from $25,000 to $15,000 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 (contracts signed between 4 June and 31 December 2020) and the new $15,000 grant (contracts signed between 1 January and 31 March 2021).
- An extension to the construction commencement timeframe 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.
- However, in all other States and Territories the existing new build property price cap of $750,000 will continue to apply.
- A change in licensing requirements and registration for builders and developers, as seen below:
- Where an eligible contract is signed on or after the 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 changes, the existing criteria applies and can be seen here.
Since applications opened for the HomeBuilder grant, a total of 23,877 applications have been made as at 20 November 2020*.
If you’re looking to build new or imagining more for your current home with a renovation, speak to one of our Home Loan Specialists today to help get you started.
*Source: Treasury (2020). Economic Response to the Coronavirus: HomeBuilder. https://treasury.gov.au/coronavirus/homebuilder