Queenslanders now have more time to take advantage of free cash bonuses for a new home that make now the best – and possible last – time to nab a great new-home deal.
The HomeBuilder grant is a government-funded scheme launched in June, 2020 to boost the construction industry during the onset of the Covid-19 pandemic.
The grants’ popularity exceeded expectation, offering new home builders and extensive renovators the chance to pocket an extra $25,000 towards their home.
Recently, the federal government announced exciting changes to the HomeBuilder grant that you should know if you’re looking at buying a new home in Queensland in 2021.
HomeBuilder grant extended to March, 2021
Pegged to end on December 31 last year, the government has recently issued an extension, meaning it’s not too late for hopeful Queensland-based new home buyers to enter the market with a significant dent already in their mortgage.
Now, you can sign a brand-new home contract in Queensland and be eligible for HomeBuilder up until March 31, 2021. You’ll have some extra time to submit the HomeBuilder application (a reputable property group will help you with the submission), until April 14, 2021.
The extension for applications also applies to contracts signed prior to January 1st, so if you missed the initial deadline, you’re still in the running for the HomeBuilder grant under the new guidelines.
Queensland HomeBuilder construction start extended
Previously, the HomeBuilder criteria included a 3-month timeframe to begin construction after signing of the contract. This has been extended to six months to accommodate the booming construction market.
The maximum value of the property you can purchase and still be eligible for the HomeBuilder grant remains the same at $750,000 in Queensland.
All these changes are good news for buyers who weren’t quite ready to buy in 2020.
HomeBuilder payout reduction
The one unfortunate change to the new HomeBuilder policy is the new payout amount of $15,000. And while it’s a shame to see a lower number, it’s still a significant boost for homebuyers, particularly those new to the market who can take advantage of many other government incentives as well.
All other eligibility requirements for the HomeBuilder grant remain the same.
How to bolster your new-home purchase with Queensland grants
Alongside the HomeBuilder grant, you may also be eligible for other government offers on the table for new home buyers in 2021
1. First Home Owners’ Grant
If you’re buying your first home, you may be able to nab another $15,000 cash boost. The bonus of the First Home Owners’ grant is that it counts towards your deposit, which is a huge stepping stone towards loan approval and a significantly smaller mortgage.
2. First Home Loan Deposit Scheme
The First Home Loan Deposit Scheme (FHLDS) was introduced in January 2020. The government is assisting homebuyers in avoiding costly Lenders Mortgage Insurance (LMI) by backing 15% of the deposit, meaning you only need to front 5% and you won’t be penalised with LMI.
As a side note, if you qualify for the First Home Owner grant as well, your deposit could be almost covered by government schemes.
The FHLDS is an application-based grant where you can apply and hope to be one of the successful applicants. The government initially offered this grant to only 10,000 homebuyers, but has since opened up another 10,000 openings for the 2020-21 financial year.
3. Stamp Duty Concession
Queenslanders buying a new home can also apply for the Stamp Duty Concession (also called Transfer Duty) on a home valued at under $550,000, which can offer extra savings of up to $8,750.
Low interest rates are perfectly positioned
The advantages for new homebuyers in Queensland aren’t just government grants. The current exceptionally low interest rates are prime for easier loan serviceability and faster paydown of your mortgage.
The new extension on the HomeBuilder grant is a huge bonus, but one that we can’t be sure will be repeated – so the clock is ticking.
If you’re thinking of buying a new home in Queensland, particularly a new build, make sure you’re getting all the cash boosts you can by using a specialist property team like Insignia Homes. We’ll guide you through your new home construction as well as navigating all the various grant applications to get you into your new home faster and easier.