15 Jun, 2020
Facts about the home builder grant
First Home Buyers Loan,Home Loans Comments Off on Facts About The Home Builder Grant $25,000


The HomeBuilder Grant is a time-limited, tax-free grant to help stimulate the residential construction market during the Coronavirus Pandemic. HomeBuilder will provide eligible owner-occupiers (Including First Home Buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. HomeBuilder will be available for applicants who entered into a building contract, with a licenced or registered builder, between the 4th of June 2020 and 31st of December 2020. The construction or renovation must commence within three month of the contract date.


To access the Grant, owner-occupiers must meet the following eligibility criteria:

1) You are a natural person (not a company or trust);
2) You are aged 18 years or older;
3) You are an Australian Citizen;
4) You meet one of the following two income caps:

a) $125,000 per annum for an individual applicant;
b) $200,000 per annum for a couple

5) You enter into a building contract between 4/6/2020 & 31/12/2020 to either:

a) Build a new home as a principal place of residence, where the property value (house & land) does not exceed $750,000; or
b) Substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 & $750,000, and where the value of your property (house & land) does not exceed $1.5 million.

6) Construction must commence within three months of the contract date.

For those of our clients that had reached out, you would have heard our team advising that we are still yet to hear or get confirmation regarding a few areas which play an important role with regards to the implications of this Grant to your individual situation. The three things we are waiting to hear more about are:

1. At what point the Grant is paid during the build contract?
2. Where/How to access the Grant?
3. How Lenders will treat this Grant (More Specific For First Home Buyers)?


As individual States and Territories are yet to sign the National Partnership Agreement with the Commonwealth Government, we are yet to know an exact start date when the grant applications can be submitted. However, have comfort in knowing that whilst the actual application process has not been finalised yet, our interpretation is that the State or Territory authority will have the ability to backdate acceptance of the HomeBuilder grants to the 4th of June 2020, once the National Partnership Agreement is signed.


Currently, certain lenders allow the ability for FHOG to be considered as a deposit when completing a land and build (and when purchasing a Brand New or Substantially Renovated property). As FHOG is paid at Base Stage, clients will never really see the funds as it will usually get paid straight to the builder.

Generally speaking, applicants will still need to have savings of around 5% deposit in order to proceed with some of the mainstream lenders.

So what we are waiting to find out more from lenders is;

Will they consider the HomeBuilders grant in the same way as how they treat FHOG; & Will the Lenders still want First Home Buyers to have the minimum 5% deposit in order to meet their policies?
We are hoping in the next couple of weeks we can get a bit more understanding from both the Federal and State/Territory level authorities and from our lender partners regarding some of the above questions.

As always, once we find out more details regarding how the above grant may benefit or influence your situation, we will let you know promptly.


There has been considerable interest in this National Grant, and it will be important to get in early as the allocations are limited at this point.

The Specialist at Brisbane Home Loans can review your financial position and advise you if are eligible for a loan and the grant.

If you are ready to go, we will assist you to prepare an application ready to be lodged once the applications for the Federal Grant are ready. We will also assist guide you with details of the State Grant which collectively can provide you with a $40,000 contribution to your dream home. Call Jordan or Dan on 3889 9250 to make an appointment.