Aussie welcomes Federal Government HomeBuilder Program

31 December 2020|4 minute read

Man and dog renovating house

Owner occupiers and first homebuyers could take advantage of a $25,000 or $15,000 Federal Government HomeBuilder grant to renovate or build a home

Here is some of the base criteria:

  • A single applicant for the grant cannot earn more than $125,000
  • A couple’s income is capped at $200,000 a year
  • Building contracts signed between 4 June - 31 December 2021 may be eligible for a $25,000 grant as long as the property value does not exceed $750,000
  • Building contracts signed between 1 January - 31 March 2021 may be eligible for a $15,000 grant as long as the property value does not exceed $950,000 in NSW, $850,000 in VIC or $750,000 in all other states and territories
  • Renovations need to be valued between $150,000 and $750,000
  • Construction must commence within six months of the contract being signed
  • The dwelling value must not be more than $1.5 million prior to the renovation.

Applications must be submitted by 14 April 2021 and further details regarding the scheme criteria can be found on The Treasury website.

James Symond's response to the announcement

CEO of Aussie, Mr James Symond said, “We welcome the $688 million government program and encourage owner occupiers seeking the grant, to get guidance from a broker to help them understand their options.

“Those eligible will need to carefully assess how to finance their build or renovation to take advantage of the HomeBuilder scheme."

“The government scheme comes with a range of conditions, timelines, and a limited number of grants available so it’s important for Australians not to hesitate, but also not to rush in without understanding their financing options. Taking up the scheme could involve refinancing, which a broker can help you navigate.”  

Aussie is receiving many inquiries from customers seeking to take advantage of the lower rates now being rolled out by lenders, with fixed and variable mortgage rates now below 3 per cent.

“A decision to see a broker could save borrowers money and years off their repayments over the life of the mortgage, while taking advantage of the HomeBuilder grant program,” Mr Symond added.  

Refinancing to renovate

Almost 70 per cent of Australian mortgage holders believe now is a good time to refinance their home loan, according to recent research commissioned by Aussie. The research also found almost 80 per cent of mortgage holders are confused about refinancing.

What to discuss with your Aussie Broker

There are a range of considerations refinancers should address when applying for the grant and financing their build or renovations, including:

  • Am I eligible for the grant including income thresholds and total value of renovations?
  • Can I access other state government grants or incentives to run in parallel?
  • Are there savings to be made by switching to another loan to finance my renovation or build?
  • What is the benefit of switching from a principal and interest to an interest only loan to finance the build or renovation?

Aussie Brokers have access to a range of lenders and can provide home loan help for those looking to take advantage of the scheme.

Speak to an Aussie Broker today