Unfortunately, HomeBuilder cannot be used as a repository. A major bank has confirmed that the HomeBuilder grant cannot be used as a genuine 5% savings. You will still need a 5% to 10% deposit for a construction loan, unless you apply for a guarantor or have equity in an existing property. ABC understands that NAB customers will be able to allocate HomeBuilder grants to a depot, but the total deposit required will not change.
According to ABC News, NAB customers can use the grant as a deposit, but the total deposit required will not change. ANZ customers can use the funds as part of the capital contributed to construction costs as long as a loan is not subject to LMI. The Commonwealth Bank said that “normal loan terms would apply for construction loans, but noted that it was still working on the details of the scheme. Generally, the NSW homeowner grant is not available for the purchase of an existing home.
As the name suggests, first-time homebuyer grants are available to individuals or couples who have not previously purchased a home. This is a big win for people who have been struggling to get a deposit and who have been turned down by lenders who were not previously considering homebuilder eligibility. Home builders and renovators should also be able to use the grant for their deposit in Tasmania and South Australia, and the Northern Territory is expected to introduce it as well, bank sources said. Homebuilders in the country's two largest states are still unable to use the scheme unless they have the money in the first place.
In essence, prospective First homebuilders will still need to have saved 5% of genuine savings for most lenders to qualify for a loan, but their deposits have now strengthened substantially. Especially if you buy on a budget, the homeowner grant can make a real difference to your home purchasing power. The federal government's announcement of its stimulus package for homebuilders was met with enthusiasm and enthusiasm from many homeowners and potential homebuyers.