Government Building Grants – What Does It All Mean?
The Federal and West Australian Governments have recently announced stimulus packages whereby they will be providing building grants to homebuilders who enter into an eligible building contract between 4 June 2020 and 31 December 2020.
The Federal Government has announced that they will provide $25,000 and the State Government has announced that it will provide $20,000. The State Government Grant is in addition to the First Home Owners Grant and stamp-duty concessions for first home owners.
These grants are designed to provide stimulus to the residential housing construction industry and the economy, as well as give people a financial incentive to build a new home to achieve their dream of home ownership.
So how do the Grants work?
We have been advised that eligible homebuilders can apply for the grants when construction has started (foundations complete). We understand that the applications for the Grant are through the Office of State Revenue. More detail can be found in the following government websites:
Because the grants are only available after construction has started and the lenders are not able to control the funds (unlike the First Home Owners Grant). Lenders will not be able to use the grants towards the deposit and fees.
We would encourage customers to utilise all or part of these building grants as a payment towards their home loan as this could result in a considerable interest saving and reduce the loan term.
We strongly support these significant government initiatives because they will help with the economic recovery and help people into their new home,
For more information, why not drop in for a chat?