Is Builder Home Grant for First home buyers?
Are banks considering Builder Home Grant as a deposit?
Builder Home Grant - VIC
Jayson12 on 14/08/2020 - 16:03
Comments
LOL FIFO worker on 50% tax rate and can't buy a house in Perth. WTF!?
Divorced and paying child support…. so i am not shocked he is struggling
About to build myself. Broker called me yesterday and said that it doesnt count as deposit
If you're buying land and building, most banks won't release more than 80% of land value at settlement and will expect you to tip in your deposit at this point. However the Builder Home Grant, from my understanding, isn't available until later in the process (slab down stage, I believe -same as FHOG.). So while you might be getting these funds, they won't be available when you need them. Check with your lender / broker as to their policy re release at land settlement stage.
I am in a similar situation, I recently changed jobs after Corona Hit and due to the lower income my borrowing capacity got reduced. I was able to borrow for the land and I have 20% deposit saved for the construction as well but the banks want an extra 25K as my borrowing capacity isn’t high and I have been fighting to get the Grant to be used as a Deposit but the bank have said no.
Now I am not sure if I should wait a year to get a pay rise at the current job or try to get 25K from someone as a loan and pay them back once the money comes.
https://www.abc.net.au/news/2020-06-11/question-can-homebuil…
Good old Google.