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FAQs: WA building bonus

Resolve Finance
FAQs: WA building bonus

I’ve heard there are grants of up to $55,000 if I want to build a new home, is that right?  

YES! If you’d like to build a new home in WA there are three construction grants available. Depending on your eligibility criteria you could access one or all of the following grants: 

  • $10,000 First Homeowners Grant 
  • $25,000 HomeBuilder Grant – a Federal Government initiative  
  • $20,000 Building Bonus – a WA State Government initiative  

I’m interested in accessing the $25,000 HomeBuilder Grant – am I eligible?  

To access the Federal Government HomeBuilder Grant you will need to:  

  • Be over 18 years of age.  
  • Be an individual and not a company or trust.  
  • Be an Australian citizen.  
  • Earn less than:  
    • $125,000 per annum as an individual or 
    • $200,000 per annum as a couple 
  • And fulfil the following criteria:  
    • You will need to sign a contract with a builder between 4th June and 31st December 2020 to:  
      • Build a home that is valued at no more than $750,000 for the house and land in total 
        • Substantially renovate your existing home with renovations valued at between $150,000 and $750,000, with the dwelling not valued at more than $1.5 million before you commenced the renovation 
        • Construction must commence within 6 months of the date of the contract. 

Is the $25,000 grant available if I’m not a first homebuyer?  

Yes, the great news is the HomeBuilder Grant is available to first and subsequent homebuyers!  

What about if I’m an investor?  

No, the HomeBuilder grant is not available for investors.  

I’m interested in accessing the $20,000 Building Bonus – am I eligible?  

To access the WA State Government Building Bonus Grant you will need to:  

  • Be over 18 years of age.  
  • Be a natural persons, corporation or trustee.  
  • Be an Australian citizen, permanent resident or Foreign Persons. 
  • And fulfil the following criteria:
    • You will need to sign a contract with a builder between 4th June and 31st December 2020 
    • Your new home will need to start construction within 6 months of signing your building contract.  

Is the $20,000 grant available if I’m not a first homebuyer?  

Yes, the great news is the Building Bonus Grant is available to both first and subsequent first homebuyers!  

What about if I’m an investor?  

Yes, the Building Bonus grant IS available for investors.  

If I’m a first homebuyer do I still get the First Homeowners Grant as well as Home Builder and / or Building Bonus grants?  

The good news is, first homebuyers also qualify for the First Home Owners Grant, which is $10,000 in WA. So you will receive this in addition to the HomeBuilder and/or Building Bonus grant if you are eligible. To qualify for the First Homeowners Grant you will need to:  

  • Be over 18 years of age  
  • Be an Australian citizen or permanent resident  
  • Start living in your home within 12 months of completion. Once you’ve moved in and started living in your home, you must live there as your principal place of residence for a continuous period of at least six months. 
  • Have never owned a residential property in Western Australia or anywhere else in Australia  
  • Have never received the grant anywhere in Australia before  

I’m not an Australian citizen but my partner is, are we eligible?  

If you are a permanent resident, you will be eligible for the $10,000 First Home Owners Grant and the $20,000 Building Bonus Grant. Only Australian citizens can apply for the $25,000 HomeBuilder Grant.  

Can I use HomeBuilder and/or the Building Bonus towards my deposit?  

This depends on the policy of the lender. We recommend contacting our trusted partners at Resolve Finance here who will talk you through your options. 

When do I apply for the grants?  

  • Applications for the HomeBuilder grant must be made no later than 31st December 2020.
  • Applications for the WA Building Bonus grant must be made by 31st December 2021. This application can only be made once construction has commenced (when foundations have been laid).

When do I receive the grant money from the Government?  

The documentation we have to hand from the Government indicates that both grants will be paid once confirmation has been received that construction has commenced. 

I was thinking about knocking down an old home and building a new one, can I do that and receive the grant/s?  

Yes, great news you can. So long as the property you knock down was not valued at more than $1.5 million prior to commencing your new build, you spend between $150,000 – $750,000 and you meet the eligibility criteria above you can access both grants.  

If your home is worth more than $1.5 million prior to commencement and/or you wish to spend more than $750,000 you could only access the $20,000 Building Bonus – providing you meet the eligibility criteria mentioned previously.  

I’m looking at buying a display home, can I apply for the grant? 

No, unfortunately not. If the display home is already built you will not be able to access the HomeBuilder or Building Bonus grants. If the home has not commenced and you plan to purchase the display home as an investment, you also will not be eligible for the grant.  

For the HomeBuilder Grant, you mention our new build must start within 6 months. What does that mean?  

Your build must commence within 6 months of executing your building contract. 

For the Building Bonus grant, you mention our new build must start within 6 months. What does this mean? 

Your build must commence within 6 months of executing your building contract.  

What if there are delays? 

In choosing a builder and finance partner it will be really important to select one who is upfront and transparent with all the information you need to feel really comfortable your builder has the capability to get your new home to site within 6 months and a finance partner who can process your application to formal approval with plenty of time to get your home to slab down stage so you can access the grant. Choosing a block of land which will be ready to build on within the required timeframe is also vital to meet the eligibility requirements as delays in your block being ready to build on could affect overall timelines. 

Does the $750,000 building contract limit include variations?  

Yes, it’s important to know that you will not be able to make variations to your building contract that would exceed the total limit of $750,000. However, stamp duty is excluded from this.  

Why is now a good time to build?  

Interest rates are at historic lows and the WA Building Bonus and HomeBuilder grants are available for a limited time – you need to sign up for both by 31 December 2020, so now is a great time to understand your options for building your dream home.  

What if I’ve already signed a building contract, can I still access the grant?  

Unfortunately not. The Government advice is very clear that any contracts signed before June 4th 2020 will not be eligible for the grants.  

 

*Information on this page does not consider your personal needs and financial circumstances and you should consider whether it is appropriate for you. Lenders terms and conditions apply and may vary. Eligibility is at the discretion of State and/or Federal Government, further Federal information here and State here (WA). All Financial services provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN: 65 079 545 378 Australian Credit Licence No. 385487. Please refer to the relevant State Government media statements.  

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