Have you heard about the $25,000 tax-free Australian Government’s new HomeBuilder grant?
If you have you might want to start getting your finances in order to see if you’re eligible. During this process, a mortgage broker will be your best friend, as you may need to take out an extra loan for the entire renovations or start a brand new home loan application to build a new home.
But first, here’s the low down on the HomeBuilder grant:
- The grant is available for first home buyers and existing homeowners. It’s not available to investors or owner builders
- The grant can be used to build a new home or renovate an existing home
To qualify for the HomeBuilder grant:
- You must spend at least $150,000 (and up to $750,000) on home renovations
- The value of the property you’re renovating must not exceed $1.5 million pre-renovation.
- For new builds, the value of the property must not exceed $750,000.
- You must be 18 years or older.
- Only Australian citizens can apply. (Companies and trusts are not allowed).
- The construction must start within three months of the building contract date.
- You have to enter the HomeBuilder scheme between 4 June 2020 to 31 December 2020.
What are the HomeBuilder income caps?
- Singles must be earning $125,000 or less
- Couples must have a combined income of no more than $200,000
Can I use HomeBuilder with other state grants?
Yes, the HomeBuilder grant can be used with existing state grants like First Home Owners Grant and even the First Home Loan Deposit Scheme.
In Queensland the following grants are also available:
- First Home Owners grant – $15,000
- First Home Loan Deposit Scheme – LMI waived for first home buyers
Are there any exclusions if I decide to undertake a renovation?
Yes, your renovation must “improve the accessibility, liveability and safety of the property”. Therefore the following additions are not allowed:
- swimming pools
- tennis courts
What documents do I need to provide for my application for the grant?
- Proof of identity
- Copy of contract that is signed and dated by you and the registered or licenced builder
- Copy of builder’s registration or licence
- Copy of your 2018-19 tax return to demonstrate income cap eligibility
- Potentially other documents like council approvals, building contracts, evidence of land value
At Sunshine Coast Financial Solutions we are happy to help you determine if you’re eligible for the HomeBuilder scheme.
Once we’ve established your eligibility we can organise a pre-approval so you can be confident when engaging a builder for your renovation plans or new home project.
If you’re unsure whether to approach a mortgage broker or go directly to a bank, this helpful article can assist you with your decision.
We look forward to speaking with you about your exciting plans.