HomeBuilder Program Extended
HomeBuilder Program Extended by the Morrison Government
On 29th November 2020, the Morrison Government announced an extension of the HomeBuilder Program until 31 March 2021.
According to Prime Minister Scott Morrison, the HomeBuilder Program is highly effective and is driving demand in the construction sector of Australia and protecting jobs by supporting the construction of new homes and home renovations.
The Prime Minister said: “HomeBuilder is a key part of my government’s Economic Recovery Plan for Australia. We’re keeping people in jobs and putting Australians’ dream homes within reach.”
“It’s critical we keep the momentum up for Australia’s economic recovery.”
“Extending HomeBuilder will mean a steady pipeline of construction activity to keep tradies on the tools.”
Minister for Housing and Assistant Treasurer, Michael Sukkar, said that HomeBuilder program would also be adjusted for the building and housing market’s conditions.
Therefore, for another 3 months, the HomeBuilder Grant will be extended, from 1 January 2021 to 31 March 2021.
Until 31 December 2020, the HomeBuilder grant will remain $25,000.
However, for all new build contracts signed between 1 January 2021 and 31 march 2021,
- Eligible owner-occupier purchasers will receive a $15,000 HomeBuilder Grant; and
- The property price caps for new builds in Victoria & New South Wales will be increased. $950,000 for NSW and $850,000 for Victoria, while the property price cap for other states and Territories will remain $750,000.
- The construction commencement deadline will be extended from three months to six months for all eligible contracts signed on or after 4 June 2020.
Minister Sukkar said that the most recent data showed HomeBuilder had already had around 24,000 applications, on track to exceed expected take up levels.
“This has been a highly effective program that’s delivering real results for home buyers and has kept tradies in work throughout the COVID pandemic,” Minister Sukkar said.
The latest Housing Industry Association’s new home sales data shows sales are 31.6 percent higher in the three months to October 2020 when compared with the same time last year. And according to Minister Sukkar, this is proof that the HomeBuilder Program is a success.
“This is a temporary and targeted program and we want to give buyers the confidence and support to enter the market right now at a time when the economy needs it most.”
This announcement builds upon the extension of the First Home Loan Scheme (announced in the Budget). The Scheme itself delivered thousands of guaranteed loans to allow first home buyers to obtain a home loan to build a new home or purchase a newly built home, with a deposit of as low as 5%.
Together, this represents an unprecedented level of Federal Government assistance for home buyers and the construction industry alike.
With the record Low-Interest Rates at the moment, wouldn’t it make sense to buy your new home right now?
Want to take advantage of the HomeBuilder Grant and Buy a New Home or Off the Plan Property? We have a variety of New Homes available that are Eligible for the HomeBuilder Grant.