How to use the government’s new grant to buy your dream home

Homebuyers can now access $25,000 from one of the federal government’s key COVID-19 stimulus packages to buy off-the-plan apartments.

The new HomeBuilder scheme is aimed at boosting industry activity in the building and construction industry. But it also opens the door for prospective buyers to purchase their dream home.

Treasury, the federal government department responsible for management of national finance, has confirmed off-the-plan sale contracts are eligible for HomeBuilder grants.

This clarification came after Treasury initially indicated applicants for the grants would need to sign a building contract. That is no longer the case.

This now means apartment and townhouse homebuyers can put the $25,000 HomeBuilder grant towards the cost of their off-the-plan purchase, provided you meet the eligibility criteria.

This could bring your home purchasing dreams much closer to reality, whether you are a first-home buyer, a family looking to upsize or even a couple considering downsizing. No homebuying group is exempt from the scheme.

That $25,000 boost could be enough to allow you to put the deposit down on your new home.

Housing Industry Association chief executive for industry policy Kristin Brookfield said the HomeBuilder clarification was a big boost for homebuyers in the current market.

“Buyers of off-the-plan apartment or townhouse projects will now have a better ability to access the scheme,” Ms Brookfield told realestate.com.au.

“The clarifications ensure that a sales contract is also eligible, not just a building contract.

“The recognition that specific actions need to be completed before work can legally start on a project is also key and will provide scope for some projects to now be eligible.”

You can buy an off-the-plan apartment with the help of the $25,000 HomeBuilder grant.

State governments, who are responsible for distributing the grants, have the discretion to extend the applicable timelines for the HomeBuilder scheme, which has the potential to make it accessible to even more homebuyers looking to buy off-the-plan.

“Equally the changes will ensure people already looking to take up the grant now have certainty that their project can meet the requirements and can move forward with greater confidence,” Ms Brookfield said.

The HomeBuilder scheme does have a number of criteria applicants have to meet if they are eligible for the grant. The main one of these is that your household must have a combined income of less than $200,000.

There is no limit on the number of homebuyers who can be granted the $25,000. However there is a time limit on the HomeBuilder scheme. Contracts must be entered into by December 31, 2020. There is the possibility in certain circumstances for these agreements to be backdated, depending on the state government’s discretion.

Here’s hoping this will put you further on that path to buy your new home.

To view our current projects at Toplace as you search for your new home, click here, or for help in your search contact us here.

You can read all about the HomeBuilder scheme here.

Frequently Asked Questions in relation to the scheme are answered here.

Good luck from Toplace in your search for your new home!