The $25,000.00 homebuilder grant was a post Covid grant founded by the Australian Government to help stimulate the property market, specifically the building industry and therefore the economy.
The $25k is a welcome grant for both First home buyers and existing buyers but there seems to be a slight issue when it comes to First home buyers and how they can use these funds.
The other First Home Buyer grants are, or can be, controlled by the Banks and lenders. This means, the bank can apply for the grant, collect the grant and forward the grant funds to pay onto the builder when the time comes. The issue with the new grant is there is no ability for the Banks and Lenders to control the funds on behalf of the client, making them nervous to include them as funds to complete in your build.
The good news is , when I do a building loan for a client I always prefer to leave some funds left post build to put towards the little things that may not be included in the build contract but are necessary to make your house a home.
The other great option for the grant funds is to pay it back directly onto the loan. This will save you money on interest for the life of the loan!
If you want to chat more about your options you can book an appointment with me here
If you’re wanting it get into the property market but have no idea where to start make sure you check out The First Home Buyer Program here
To find out more about the Grant, if you qualify and the details head here