HomeBuilder, and why September matters.
This week we’ll talk about HomeBuilder.
The HomeBuilder grant was established to act as a stimulus to the construction sector, with the Federal Government previously predicting, the scheme will support about 20,000 new home builds.
In reality, it’s had a very sluggish start, with applications opening online only recently. About 250 applications have been received, with majority from South Australian First Home Buyers.
That said, if you are an eligible first home buyer that has saved a deposit (or close enough), it’s $25,000 that’s there for the taking if you meet the criteria. You just have to be quick! There are some hoops to jump through to meet the deadline of 31 December 2020 – just 112 days away.
One of the biggest time consuming tasks will be the Home Loan approval process, which usually takes 4-6 weeks. This is why September is so important.
A mini case study if you will.
You have found your ultimate home and land package (with registered/titled land), you submit your home loan application to your lender/broker by the end of this week, finance approval may not come in until early-mid November. Then you need to sign your contracts, make payment(s) and the builder needs to commence work before 31 December. Please also note: usually the major builders close over the Holiday period, around the third week of December.
So like I said, you’ve got to be quick to get your hands on the money before it runs out!
Will HomeBuilder be extended? There has been no official word for the rest of Australia, however due to Victoria’s stage four restrictions, the deadline has been extended by three months for eligible Victorian builds.
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