While the government’s newly announced HomeBuilder scheme has been largely applauded, some have noted that the eligibility criteria will keep the grant out of reach for many homebuyers.
Mortgage broker Aussie was among those to welcome the $688 million program which will give select owner occupiers $25,000 towards the cost of building or renovating their property by the end of 2020.
Given the parameters around eligibility, CEO James Symond has highlighted how valuable a broker's guidance is sure to be to those seeking the grant.
“Those eligible will need to carefully assess how to finance their build or renovation to take advantage of the HomeBuilder scheme,” Symond said.
“The scheme comes with a range of conditions, timelines, and a limited number of grants available so it is important for Australians not to hesitate, but also not to rush in without understanding their financing options.”
A single applicant for the grant can earn no more than $125,000 a year, and a couple’s joint income is capped at $200,000. The renovations need to be valued between $150,000 and $750,000, with the dwelling value not exceeding $1.5 million before the new work.
Symond has also encouraged eligible home owners and their brokers to consider if there are other state government grants or incentives which can be utilised in parallel with HomeBuilder, in addition to calling for the exploration of the savings available from switching loan products, or moving from principal and interest to interest only, in order to finance the renovation or build.
“[I] encourage owner occupiers seeking the grant to receive guidance from a broker to help them understand their options,” he concluded.