Aussie welcomes Federal Government HomeBuilder Program

04 June 2020|4 minute read

Man and dog renovating house

Owner occupiers and first homebuyers could take advantage of a new 25k 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
  • Builders can apply when their principal place of residence is valued up to $750,000
  • Renovations need to be valued between $150,000 and $750,000
  • The dwelling value must not be more than $1.5 million prior to the renovation.

The $25,000 grant must be used towards the cost of building or renovating a property by the end of 2020.

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.

To learn more, you can read through the HomeBuilder Scheme Information on the Federal Government's Treasury website.

Speak to an Aussie Broker today