Government Stimulus, Grants, Rebates & Updates
The latest updates and announcements.
With so many options, a changing finance landscape, Covid-19 and Government announcements, the amount of information out there can be a little overwhelming. In summary – here are the options.
All Government Grants & Stimuluses
The West Australian Government unveiled a $125 million stimulus package for the State’s home building sector, providing cash grants to prospective Home Buyers on top of the Federal Governments existing stimulus & schemes.
Up to Eight different schemes are available:
- State Building Boost grant $20,000
- Federal Home builder grant $25,000
- First home buyer grant cashback $10,000
- First Home buyer Stamp Duty Relief up to $430k purchase price
- Home Buyer assistance account up to $2000 up to $400k purchase price
- 75% Stamp Duty Rebate – off the plan purchases
- First Home Low Deposit Scheme – Government guarantee Lenders Mortgage Insurance ($400k purchase price, existing or new properties)
- New Home Guarantee (NHG) – Government guarantee Lenders Mortgage Insurance ($550k purchase price – Perth Metro & $400k WA other – Recently completed, New or build)
As part of the 2020-21 Federal Budget, the Australian Government has committed an additional 10,000 First Home Loan Deposit Scheme (FHLDS) places for the 2020-21 financial year, specifically for eligible first home buyers purchasing new homes.
The ‘New Home Guarantee’ (NHG) has been established to support the Government’s economic stimulus measures and create jobs in the residential construction sector.
The additional 10,000 guarantees will be made available in 2020-21 for eligible first home buyers to build a new dwelling or purchase a newly built dwelling with a deposit of between 5 and 20 per cent of the property’s value (lenders criteria applies). A revised set of property price caps will apply specifically for eligible properties under the NHG.
What is a ‘new home’?
Eligible NHG properties include:
- Newly constructed dwellings (e.g. whether a freestanding house, townhouse or apartment)
- Off-the-plan dwellings (e.g. whether a freestanding house, townhouse or apartment)
- House and land packages
- Land and a separate contract to build a new home.
To be eligible, the borrower purchasing the newly built dwelling must be a First Home Buyer.
STATE GOVERNMENT EXTENDS BUILDING BONUS TIME FRAMES
Great news! With so many proposed new buildings – some Building companies were actually turning prospective customers away as they were unable to meet the demand. However, Premier Mark McGowan has announced an extension to the Building Bonus time-frame. The requirement to commence construction has been extended to the end of December 2021.
The deadline for entering into a building contract remains 31 December 2020.
So, our recommendation – talk to us – let us help you navigate all your options and look at your personal situation to tailor make the best way forward for your needs and plans, as well as walk you through the whole process.