This morning WA Premier Mark McGowan announced an additional boost to WA’s builders and those wanting to build a new home. Following on from Prime Minister Scott Morrison’s announcement of the $25K building and renovation boost, Premier Mark McGowan has added an additional $20K grant to West Australians who enter into a build contract.
The Premier reinforced his message that Covid restrictions have eased but still remain in place, he focused on the impact of the building industry where the pipeline of new projects has significantly eased “putting local jobs at risk in the coming months.”
The Premier’s announcement on Facebook continued “To help get new homes under construction, we’re introducing $20,000 Building Bonus grants for any Western Australia to build a new house or purchase a property in a single-tier development already under construction.
The grants will be available until the end of the year, and will not be means tested and have no cap on property value.”
For first home buyers this increases incentives to a total of $55,000 plus the waiver of first home stamp duty.
For those looking at getting into your first home, or taking advantage of building it’s important to get some advice regarding your financial position.
Lenders are yet to announce their policies regarding utilising these grants and incentives as a deposit for your first home. Lenders have already made changes to their policies due to the potential financial impact that Covid-19 may have or has had on applicants..
The current requirement is generally that you require 5% genuine savings if borrowing over 90% of the value of the property. In many cases this stimulus will allow first home buyers to have in excess of 10% deposit waiving that current policy.
We will keep you updated with the lender changes and how these grants are applied for as we get the information.