The federal government has just announced that the HomeBuilder Scheme will be extended to March 31, 2021. That’s good news for home buyers and renovators!
In case you missed it, the HomeBuilder Scheme was one of the key government initiatives to boost the economy after the impact of the COVID-19 restrictions. If you’re eligible, it’s a tax-free cash grant you can receive if you sign a contract to:
- build a new home, or
- substantially renovate your existing one.
Here are the FAQs for the extended Scheme.
What are the extended dates for HomeBuilder?
The Scheme was due to finish on December 31 this year, which meant that time was running out to sign your building or renovation contract. That deadline has now been extended to March 31.
Construction must commence within six months from the date the contract to build or renovate is signed.
Will the grant be the same after December 31?
No, it will reduce.
From January 1, the HomeBuilder cash grant for signed contracts will reduce from $25,000 to $15,000.
Will the property price caps for new builds change after December 31?
Yes, in New South Wales and Victoria. The cap will increase to $950,000 in New South Wales and $850,000 in Victoria.
Up until December 31, the new build price cap is $750,000 for all Australian States and Territories.
Are the renovation criteria the same after January 1?
Yes, your renovation work must be valued at between $150,000 and $750,000. The value of your home must also be less than $1.5 million.
What are the eligibility requirements for HomeBuilder?
In addition to meeting the new build or renovation value requirements, you must:
- be an Australian citizen,
- be over 18, and
- have a taxable income less than $125,000 if you’re single or a combined income of less than $200,000 if you have a partner (married or de facto).
Can you get HomeBuilder if you get the First Home Owners Grant?
Yes, if you meet the eligibility criteria for both. The First Home Owner Grant in New South Wales is $10,000. You can also apply for it through Revenue NSW.
How many people have signed up for HomeBuilder?
The most recent statistics available show that nearly 20,000 Australians have applied for HomeBuilder new home builds, while just under 5,000 have applied for substantial renovation grants.
How do you apply?
You can apply to your State or Territory’s revenue office. For example, in New South Wales you apply to Revenue NSW. Applications close on 14 April, 2021.
How we can help
At Wisebuy Investment Group mortgage brokers Newcastle, NSW, our experienced and licensed brokers can help you to take advantage of the HomeBuilder Scheme by getting a home or renovation loan.
We’ll take the time to understand your individual situation before providing you with advice. We understand the lending criteria of different lenders, so we’ll recommend an appropriate lender for your situation. We’ll also help you with your loan application. And best of all, our service is free!
Contact us today for an obligation-free chat!