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Buying a home

Federal and State building stimulus packages


Roisin Broderick, Content Specialist, Keystart

4 mins

There have been some recent announcements from both the Federal and Western Australian State governments in relation to stimulus packages designed to deliver a boost to our national and state economy and help the residential construction market to get through the Coronavirus pandemic. Great news if you are planning on building a new home!

If you are eligible for either the Federal and Western Australian Government building grants, you can apply to the relevant authority when the construction of your home has started, that is when the foundations are complete. You'll be able to find out more about how and when to apply on the WA Gov website.

Contact your preferred builder to find out more about the options available to you.

As Keystart will not be administering the grants, unlike the current $10,000 First Home Owner Grant (FHOG), these additional grants won't be available to use towards your deposit and fees.

We encourage customers to utilise all or part of these building grants as a contribution towards your home loan as this may result in a considerable saving in interest paid and reduce your loan term. This may also reduce your loan-to-value ratio (LVR).

You can still find out how much you may be eligible to borrow using our how much can I borrow tool. You can also start an application enquiry to see if you would be eligible for a Keystart home loan, based on our existing policies.

How to apply for stimulus packages 

How much can I borrow

Apply for a Keytart loan

- Announcement: Keystart income limits extended and home renovation campaign released

Federal government $25,000 Homebuilder grant and renovations package

For a limited time, the Homebuilder grant of $25,000 will be available for eligible Australians to help the residential construction industry recover from the COVID-19 crisis. Under this scheme, eligible owner-occupiers, including first home buyers, will receive this payment to build a new home or substantially renovate an existing one.

Eligibility conditions for Homebuilder grant

  • You must build a new home.
  • You must be earning less than $125,000pa for a single applicant, $200,000pa for a couple or family.*
  • This grant is available for both first home buyers and subsequent homebuyers.
  • The construction is for owner-occupation purposes only.
  • Purchase price of a new home must not exceed $750,000.*
  • Contract to build must be signed between 4 June 2020 and 31 December 2020.
  • Construction of the home must commence within three months of the contract date.
  • The money can be put towards renovations worth between $150,000 and $750,000 that will result in the property being priced at $1.5million or less.
  • This grant cannot be used on investment properties or to construct things outside the home such as swimming pools, tennis courts, outdoor spas etc. and the work must be carried out by a licensed builder.

* Note: These are the eligibility criteria for the grant. Keystart has eligibility criteria for our loan products, including income limits and a maximum purchase price. Refer to our loans for specific eligibility information about Keystart home loans. 

Read more about the Homebuilder grant

Federal government media statement

Homebuilder Fact Sheet (with examples)

Homebuilder FAQs

WA Building Bonus scheme - $20,000 home building cash grant

The WA State government has announced that Western Australians looking to build a new home will get a $20,000 grant as part of the State’s $117m Building Bonus package. This grant scheme is in addition to the $25,000 Homebuilder payment being provided by the Federal government. Eligible first home buyers will also receive the $10,000 First Home Owners Grant and stamp duty concessions meaning you may be eligible to receive a total of up to $69,440 in grants and concessions.

Eligibility conditions for the Building Bonus grant

  • There are no income limits, it is not means-tested.*
  • There are no purchase price limits.*
  • Can be used to purchase a new property in a single-tier development such as a townhouse prior to completion of construction.
  • This grant is available for both first home buyers and subsequent homebuyers.
  • This grant cannot be used towards renovations.
  • Contract to build must be signed between 4 June 2020 and 31 December 2020.
  • Construction of the home must commence within twelve months of the contract date.

* Note: These are the eligibility criteria for the grant. Keystart has eligibility criteria for our loan products, including income limits and a maximum purchase price. Refer to our loans for specific eligibility information about Keystart home loans.

Read more about the Building Bonus grant

State government media statement

Updated Building Bonus Media Statement (Tuesday 20 October 2020)

Building Bonus FAQs

Department of Finance updates

FAQs

How will the grants work?

If you are eligible for either the Federal and Western Australian Government building grants, you can apply to the relevant authority when the construction of your home has started, that is when the foundations are complete. You'll be able to find out more about how and when to apply on the WA Gov website.

How to apply for stimulus packages

As Keystart will not be administering the grants, unlike the current $10,000 First Home Owner Grant (FHOG), these additional grants won't be available to use towards your deposit and fees.

We encourage customers to utilise all or part of these building grants as a contribution towards your home loan as this may result in a considerable saving in interest paid and reduce your loan term. This may also reduce your loan-to-value ratio (LVR).

 

Can I use the grants towards my deposit?

As Keystart will not be administering the grants, unlike the current $10,000 First Home Owner Grant (FHOG), these additional grants won't be available to use towards your deposit and fees.

We encourage customers to utilise all or part of these building grants as a contribution towards your home loan as this may result in a considerable saving in interest paid and reduce your loan term. This may also reduce your loan-to-value ratio (LVR).

Can I apply now?

You can apply for the grants through RevenueWA, on the Gov WA website. 

How to apply for stimulus packages

 

More about Keystart loans


Keystart recommends that you seek your own independent financial advice prior to making any decisions about your financial needs. Any examples given in this post are provided for illustrative purposes only.