Read more on the Federal Government HomeBuilder Grant...

Posted in: Insights, News

23/06/2020

For those interested in the HomeBuilder grant, we continue to recommend a level of caution if the HomeBuilder Grant is required as part of the deposit to make a project work. We expect further clarification on HomeBuilder once Revenue SA are ready to start processing applications. Because of this the majority of Lenders currently seem unwilling to assess any pre-approval applications that are reliant on the $25K HomeBuilder Grant being utilised as funds to complete.

The HomeBuilder Grant initiative was introduced by the Federal Government on the 4th June 2020 to assist the building industry during the COVID-19 crisis. The Grant allows for a payment of $25,000 to eligible applicants who enter into a contract after the start date to either build a new home, or substantially renovate an existing home. Unlike other Grants which are generally targeted at First Home Buyers, the HomeBuilder Grant is available to anyone who meets the criteria.

More information about eligibility can be found in our previous article here.

When the Grant was initially announced, it resulted in a lot of interest. However, there was some important information missing, particularly the finer details around eligibility, timing of the payment and how the payment would be administered by each state’s Revenue Office.

An update recently provided by Treasury has sought to provide more detail and clarification around some of these issues. A copy of the updated FAQ’s can be found on the Treasury website by clicking here. However, at this stage, Revenue SA remains unable to process applications and has not provided any guidance on particular issues that Treasury has passed responsibility to them.

Should you have any questions regarding your borrowing capacity, suitable loans, or whether you may qualify for the HomeBuilder Grant we encourage you to chat with one of our experienced Mortgage Brokers on 8300 8300 or you can email us at info@bernielewis.com.au