Article:

Everything you need to know about the homebuilder grant

01 December 2020

Marie Ryan, Associate Director and Accredited Finance Broker, Finance Solutions |

The Federal Government’s HomeBuilder grant provides eligible owner-occupiers and first home buyers with a grant to build a new home, or substantially renovate an existing home.

The grant has been extended to 31 March 2021, with the Federal Government making some changes to it. These changes are outlined below.

  • The grant has been reduced from $25,000 to $15,000 for building contracts signed 1 January 2021
  • The construction commencement timeframe is extended from three months to six months
  • The licensing and registration requirements for builders and developers have been updated so that:
    • Where a contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020
    • Where a contract is signed on or after 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.

For Queensland buyers, other than the above changes, the existing grant criteria applies, including availability of the current $25,000 grant for contracts signed before 31 December 2020.

To date, almost 6,000 Queenslanders have applied for the $25,000 HomeBuilder grant – the second highest number of applicants across all states and territories (behind Victoria). Of Queensland’s applications, 84% have been for new builds and the balance for substantial renovations.

What you need to know

We have prepared a guide that outlines the key information to help home buyers navigate the current concessions. These include:

  • First Home Owner Grant - $15,000
  • First Home Loan Deposit Scheme – Waived Lenders Mortgage Insurance
  • HomeBuilder Grant to 31 December 2020 - $25,000
  • HomeBuilder Extension Grant from 1 January 2021 to 31 March 2021 - $15,000
  • Regional Home Building Boost Grant - $5,000
  • Transfer Stamp Duty Concessions.

     

Queensland

home owner concessions

First Home Owner Grant

$15,000 ongoing

First Home Loan Deposit Scheme

New homes

Waived LMI (Limited places)

HomeBuilder Grant

$25,000 Building contracts between 4 June and 31 December 2020

HomeBuilder Extension

$15,000 Building contracts between 1 and 31 January 2021 ilding Contracts

Who it is for

First home buyer

who will live in the home

First home buyer with less than 20% deposit and who will live in the home Home buyer who will live in the home or home renovator Home buyer who will live in the home or home renovator
Assistance A grant of $15,000 Waived Lenders Mortgage Insurance A grant of $25,000 A grant of $15,000
Loan purpose To buy or build a new home1 (not previously occupied or sold as a place of residence) or an off-the-plan home. To buy or build a new home (not previously occupied or sold as a place of residence) or an off-the-plan home. To buy or build a new home (not previously occupied or sold as a place of residence) or an off-the-plan home, or substantially renovate3 an existing home. To buy or build a new home (not previously occupied or sold as a place of residence) or an off-the-plan home, or substantially renovate3 an existing home.
Maximum purchase Less than $750,000
  • $650,000 Brisbane, Sunshine Coast and  Gold Coast
  • $500,000 rest of Queensland
$750,000 $750,000
Applicant eligibility
  • Individual or couple
  • If joint - married or de facto
  • 18 years or older
  • Australian citizen or permanent resident (or applying with someone who is)
  • First home buyer/s2
  • No income test
  • Individual or couple
  • If joint - married or de facto
  • 18 years or older
  • Australian citizen/s (all)
  • First home buyer/s (all)
  • Max taxable income based on last financial year tax return of $125,000 pa for an individual or $200,000 pa for a couple
  • Individual or couple
  • If joint - married or de facto
  • 18 years or older
  • Australian citizen/s (all)
  • Max taxable income based on last financial year tax return of $125,000 pa for an individual or $200,000 pa for a couple
  • Individual or couple
  • If joint - married or de facto
  • 18 years or older
  • Australian citizen/s (all)
  • Max taxable income based on last financial year tax return of $125,000 pa for an individual or $200,000 pa for a couple
Extra information and exceptions
  • Paid per new home, not to each applicant for the same home.
  • You must move into the home as your principal place of residence within one year and live there for six months.

Exceptions

1May be an established home that has been substantially renovated before your purchase or a home moved from one site to another if the home has not been occupied since being moved.

2If owned interest in property since 1 July 2000 solely used for investment purposes, you may be eligible.

  • Genuine savings of 5% minimum.
  • Principal and Interest loans only (Interest Only allowed during construction period).
  • Available at participating lenders.
  • Fixed price building contracts only.
  • You must move into the home as your principal place of residence within six months of settlement or occupancy certificate issued, and continue to live there while your loan is covered by the scheme.
  • A contract of sale/building contract must be entered into prior to the expiry of the 90 day pre-approval period.
  • 3Renovate an existing owner-occupied home at a cost of $150,000 to $750,000, where the property value is less than $1,500,000 prior to renovation.

 

Not for:

  • Renovations adding to property (e.g. pool, tennis court, outdoor spa/sauna, sheds, garage).
  • Non-arm's length building or purchase contract (i.e. related party/special price).
  • 3Renovate an existing owner-occupied home at a cost of $150,000 to $750,000, where the property value is less than $1,500,000 prior to renovation.

 

Not for:

  • Renovations adding to property (e.g. pool, tennis court, outdoor spa/sauna, sheds, garage).
  • Non-arm's length building or purchase contract (i.e. related party/special price).
Important dates Ongoing scheme applying to contracts dated 1 July 2018 or later.
  • Limited availability – 10,000 places.
  • Newly built homes must be constructed after 1 January 2020.
  • For house and land and off-the-plan homes, the contract of sale must be dated later than 7 October 2020.

For contracts signed between 4 June 2020 and 31 December 2020.

If contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.

If contract is signed after 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.

Construction must commence within six months of the contract being signed and must not have started before 4 June 2020.

Applications can be submitted up until 14 April 2021.

For contracts signed between 1 January 2021 and 31 March 2021.

Builder or developer must have a valid licence or registration before 29 November 2020.

Construction must commence within six months of the contract being signed and must not have started before 29 November 2020.

Applications can be submitted up until 14 April 2021.

How to apply4 Through lender/Office of State Revenue Through participating lenders Apply online Apply online
Fact sheets Eligibility check Eligibility check Fact sheet Fact sheet
Regional If you are in regional Queensland, you may also be eligible for the $5,000 Regional Home Building Boost Grant.

Transfer

Stamp Duty Concessions

Calculated on purchase price

 

Calculate your stamp duty here

Owner-occupier home buyers (not first home) receive concessions of up to $7,175 (regardless of purchase price).

First owner-occupier home buyers pay no stamp duty if the purchase price is up to $500,000.

Discounted stamp duty applies for a purchase price between $501,000 and $549,999. No further discounts apply from $550,000.

Purchase price Owner occupied Investment or vacant land Purchae price Owner occupied Investment or vacant land
First home Not first home First home Not first home
$500,000 $0 $8,750 $15,925 $530,000 $6,300 $9,800 $16,975
$520,000 $4,200 $9,450 $16,625 $550,000 $10,600 $10,600 $17,775
Find out more

Contact Marie Ryan in BDO’s Finance Solutions team on 0432 831 474 or [email protected].

4Marie will help you identify the assistance you are eligible for and support you with the application process.

If you have any questions about these concessions, please contact Marie Ryan.

 

Marie is accredited with a wide range of lenders and can assist with applying for finance and relevant grants.

Marie Ryan is an authorised credit representative 519653 of BDO Corporate Finance Ltd (ACN 010 185 725) Australian Credit Licence 24551.

Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.