Updated 1 December 2020.

The Victorian Government has announced there will be a three month extension to the HomeBuilder program as a result of the Stage 3 and 4 COVID-19 restrictions across the state.

The HomeBuilder program, announced on 4 June 2020, provides all eligible owner-occupiers (not just first home buyers) with a grant of $25,000 for those who enter into a contract before 31 Dember 2020 to build a new home or substantially renovate an existing home or a grant of $15,000 for those who enter into a contract before 31 March 2021.

The program aims to support the residential constructions sector including businesses and sole-traders, contractors, property developers, construction materials manufacturers, engineers, designers and architects.

The grants are available to those building a new home for less than $750,000, or renovating an existing one for a budget of between $150,000 and $750,000, who have a taxable income of less than $125,000.

Extension to 31 March 2021

It was recently announced that the HomeBuilder program will be extended until 31 March 2021 with a reduced grant.

The changes for the extension include:

• A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
• An extended deadline for all applications to be submitted, including those applying for the $25, 000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
• An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
• An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
  • The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
• A change in licensing requirements and registration for builders and developers, as below
  • Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
  • Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.

Other than the above, the existing program criteria applies. That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.

For full details of the scheme see our previous blog HomeBuilder Program – all you need to know

After a home loan or finance for a home renovation?

The team at Endeavor Finance can assist with all of your mortgage needs, from finding out how much you can borrow, securing your first home loan, re-financing an existing loan, seeking an increase or simply getting a new one for that dream renovation.

Visit www.endeavorbendigo.com.au for more information.