The Home Builder Grant

You can now bootstrap your way to buying your home with a whopping $35,000 from the Australian government. The payment includes the following:

• Homebuilder grants of $25,000, plus
• First home buyers grant of $10,000

What is the homebuilder grant

The Homebuilder grant is an uncapped grant, meaning there is no limit to how many people can apply. It is tax free and time limited, designed to help the residential construction market to get through the Coronavirus pandemic. It 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. The grant will be available for building contracts signed between 4 June 2020 and 31 December 2020, where construction or renovation commences within three months of the contract date. Where eligibility criteria is met, the grant is accessible in addition to all the following other State grants:

• First Home Owner Grant
• Stamp duty concessions
• Commonwealth’s First Home Loan Deposit Scheme
• First Home Super Saver Scheme

What is the eligibility criteria?

To access Homebuilder, you must meet the following eligibility criteria:

• you are an owner occupier
• you are a natural person (not a company or trust)
• you are aged 18 years or older
• you are an Australian citizen;
• you meet one of the following two income caps: 

• $125,000 per annum for an individual applicant based on your 2018-19 tax return or later or
• $200,000 per annum for a couple based on both 2018-19 tax returns or later
• you enter into a building contract between 4 June 2020 and 31 December 2020 to either:
  • build a new home as a principal place of residence, where the property value does not exceed $750,000 or
  • substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million.

• construction must commence within three months of the contract date.

The programme will be accessed through your Local State Revenue Office like NSW office of State Revenue.

How much do I personally need to save up to buy property?

Sydney Metro: minimum of $35,000 

Central Coast| Hunter: minimum of $23,200

Brisbane: minimum of $20,000

Melbourne: minimum of $25,000

The amount you need depends on whether or not you qualify for the government’s First Home Deposit Scheme (FHDS). The FHDS is a scheme that allows first home buyers to buy property with only a 5% deposit without paying lenders mortgage insurance (LMI).  (LMI) is a one-off insurance premium paid by you with a purpose of protecting the lender if you default on your mortgage. Lenders usually take out this insurance when they are lending more than 80% of the value of the property and it enables them to take on this higher risk.

Table A below summarises that amount you need if you qualify for the First Home Deposit Scheme. If you don’t qualify for the First Home Deposit Scheme, refer to Table B.

Table A – FHDS available
Purchase price	$750,000	$700,000	$650,000	$500,000
Deposit you need if you qualify for the First Home Deposit Scheme	$51,889	$48,202	$36,684	$27,584
Amount you get from the government	$35,000	$35,000	$35,000	$35,000
Amount to be funded by you – Shortfall/(Surplus)	$16,889	$13,202	$1,684	-$7,416
Note: no stamp duty is assumed on purchase price of $500,000all examples based on house and land packages costing excludes LMI

Table B – FHDS not available
Purchase price	$750,000	$700,000	$650,000	$500,000
Deposit you need if you don’t qualify for the First Home Deposit Scheme	$80,604	$75,002	$61,584	$42,309
Amount you get from the government	$35,000	$35,000	$35,000	$35,000
Amount to be funded by you – Surplus(Shortfall)	$45,604	$40,002	$26,584	$7,309
Note:no stamp duty is assumed on purchase price of $500,000all examples based on house and land packages costing includes LMI

How can we help you?

We can help you to:

• Get a loan.
• Help you get the government grants.
• Help you to source property from a wide list of our external development contacts and
• And be there with you, helping you with everything you need to do until you get your keys.

Call us now. Sekou 0432 674 668 | Sabin 0468 755 418