All states now open for HomeBuilder applications
All states have now opened for applications for the federal government’s new HomeBuilder grants, with ACT the only government yet to launch an online application form.
The federal government recently reached an agreement with all states and territories to administer its $688-million HomeBuilder scheme, with all states and territories becoming signatories to the HomeBuilder National Partnership.
The scheme provides a $25,000 grant to owner-occupiers “substantially renovating” or building a new home from 4 June to 31 December 2020.
A national price cap of $750,000 has been set for new home builds, and a renovation price range of $150,000 to $750,000 applies to renovating an existing home with a current value of no more than $1.5 million.
All state governments have now launched their application process for the grants.
For all, except those in the ACT, applicants can lodge their applications via an online portal or by downloading a form and sending it through email or post.
Those wishing to access the HomeBuilder grant in ACT are not yet able to lodge a full application online. Instead, applicants are being asked to register their interest for the scheme by 31 December to be considered. Those who register their interest will then be advised of when the “comprehensive” application form – requiring detailed information about the applicant, their builder, type of construction, as well as detailed supporting documentation – is available to complete.
Borrowers wishing to access the grant are being urged to check their eligibility via the state government’s respective revenue office websites before lodging an application.
HomeBuilder construction period extended in Victoria
The federal government recently confirmed that HomeBuilder participants in Victoria will be given more time to commence residential construction due to its ongoing lockdown measures.
Federal Minister for Housing Michael Sukkar confirmed last week that the construction commencement time frame for Victorians participating in the scheme will be extended.
Under existing arrangements, participants are required to commence construction within three months of the settlement data; however, the exemption has been granted in light of newly imposed stage 4 lockdown measures aimed at curbing the spread of COVID-19.
Mr Sukkar noted that a provision included in HomeBuilder’s design allows states and territories to extend the time frame by up to three months “where commencement is delayed due to unforeseen factors outside the control of the parties of the contract”.
“Given the unique lockdown affecting Melbourne, as well as restrictions throughout regional Victoria, the decision to extend the commencement time frame made by the Victorian Commissioner of State Revenue provides certainty and confidence to applicants and builders alike,” Minister Sukkar said.
This means that all applicants for the HomeBuilder Grant in Victoria have six months from the signing of the eligible HomeBuilder contract to commence construction.
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Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.