Everything You Need to Know About the New $25K HomeBuilder Grant

What is the HomeBuilder Grant?

HomeBuilder is a tax-exempt grant program started by the Federal Government to boost the home construction sector in light of the economic recession due to the COVID-19 pandemic. This new grant program will help eligible candidates with a $25,000 grant to renovate an existing home or build a new home. This grant is only accessible if building contracts are signed between 4th June 2020 and 31 December 2020. The HomeBuilder grant further states that the construction work must start inside 3 months of the agreement date.

This new grant program came into existence in the midst of the Reserve Bank of Australia’s (RBA) notice that the house development sector would confront an all-encompassing time of difficulties as Australia’s economy falls into a downturn – presumably the most noticeably terrible economic recession in 90 years. It has been estimated that this new grant program would support the constructions of at least 30,000 homes by December and also boost 200,000 jobs.

Are You Eligible for the HomeBuilder Grant?

To be eligible for the HomeBuilder grant, owner-occupiers have to meet the following eligibility criteria:

  • You are a normal individual (not an organization or trust).
  • Your age is 18 years or older.
  • You must be an Australian citizen.
  • You must fall under one of the following two income caps: a) $125,000 per annum for an individual candidate b) $200,000 per annum for a couple depending on both 2018-19 tax returns or later.
  • It is mandatory that you have to lock a building contract between 4 June 2020 and 31 December 2020.
  • You need to either build a new house as a primary place of residence with property estimation (house and land) not exceeding $750,000 or you need to renovate your current home as a principal spot of living, with the remodelling contract somewhere between $150,000 and $750,000. When it comes to renovating your existing home, the value of the current property (house and land) must not exceed $1.5 million.
  • Most importantly, the construction work must start within three months of the contract date.

It is important for you to understand that the new $25,000 HomeBuilder cash grant will be given to people on middle incomes. This scheme will be applicable only for new homes and major renovations within a range of $150,000 to $750,000.

In the event that you meet the above-mentioned criteria, you can submit an application for the $25,000 grant between now and December 31, with an obligation to start the construction work within three months of the contract date.

How to Spend the Grants?

  • You can build a new home as a primary place of residence esteemed at up to $750,000 (also including the land); or
  • You can renovate an existing house as a primary place of residence, with total renovation work esteemed at somewhere in the range of $150,000 and $750,000. The existing home must not have a value more than $1.5m before the renovation.

You need to understand that even in the most minimal renovation under this new scheme ($150,000), you will have to spend at least $125,000 of your own cash. This means that this new scheme is most favourable for individuals who have significant savings or are willing to borrow.

Do You Need to be a First Home Buyer to be Eligible for the HomeBuilder Grant?

No, there is no such obligation that you have to be a first home buyer to obtain the $25,000 HomeBuilder grant, provided you meet the above-mentioned eligibility criteria. However, it is mandatory that the property should be your primary residence and you need to live there in order to meet the criteria. This means that your application can be rejected if the funds are for an investment property.

Homes that are Eligible for HomeBuilder Grant

All home kinds are qualified for this new scheme, including apartments, houses, house and land packages and off-the-plan purchases, only if the owner-occupier is building a new house or substantially renovating an existing house. Most importantly, individuals need to meet the income eligibly criteria.

Gross Income or Net Income?

When it comes to the new HomeBuilder scheme, the income cap is like the First Home Loan Deposit Scheme, so your annual income needs to be under $125,000 and as a couple your consolidated income should be under  $200,000. You need to understand that the income limit is calculated on your gross income, before tax and excluding superannuation.

HomeBuilder Exclusions

The newly introduced HomeBuilder grant is just accessible for building contracts, so it isn’t accessible in the event that you are:

  • Renovating or building an investment property.
  • Building a new house that has a collective home and land value over $750,000.
  • Building a granny flat.
  • A visa holder, a New Zealand citizen or a permanent resident.
  • Building anything that is not associated with your home for instance, a tennis court, sauna, swimming pool, outdoor spa, garage, shed or granny flat.
  • An owner builder, or developing or remodelling through a registered or licensed builder.

How Can You Access the HomeBuilder Grant?

To get proper clarity on when and how to apply, you have to contact the relevant authority in the state or territory. You can apply for the HomeBuilder grant in the state you currently live or plan to live once it signs or approves the National Partnership Agreement with the Federal Government.

What Documents or Proof You Need To Provide When You Apply for the HomeBuilder Grant?

You will need to provide the following documents when you apply:

  • Identity proof.
  • A copy of the agreement signed and dated by the applicant and the designated licensed/registered builder.
  • Depending upon the state or territory you live, you need to provide a copy of your builder’s license or registration.
  • To elucidate your income eligibility (and your partner’s), you need to provide a copy of your 2018-2019 tax return or later.
  • You need to provide documents, for example, building contracts, occupation certificates, council development approvals and evidence of land value.

Using Multiple Grants

If you match the criteria of both schemes, you can easily apply for the First Home Owners Grant in your state, and furthermore obtain the HomeBuilder Scheme.

First Home Buyer Schemes – State by State

Victoria: $45,000 for first home buyers

  • First Home Owners Grant in VIC:$10,000 urban, $20,000 regional
  • HomeBuilder Scheme in VIC: $25,000

More info: Go to the Victorian Government’s first homeowner website.

 

Northern Territory: $35,000 for first home buyers 

  • First Home Owners Grant in NT:$10,000
  • HomeBuilder Scheme in NT: $25,000

More info: Go to the NT Government’s homeowner assistance website.

 

South Australia: $40,000 for first home buyers 

  • First Home Owners Grant in SA:$15,000
  • HomeBuilder Scheme in SA: $25,000

More info: Go to the SA Government’s first homeowners website.

 

New South Wales: $35,000 for first home buyers 

  • First Home Owners Grant in NSW:$10,000
  • HomeBuilder Scheme in NSW:$25,000

More info: Go to the NSW Government’s first homebuyer website.

 

ACT: $25,000 for first home buyers 

  • First Home Owners Grant in ACT:None

HomeBuilder Scheme in ACT: $25,000

More info: Go to the ACT Government’s home buyers assistance website.

 

Tasmania: $45,000 for first home buyers

  • First Home Owners Grant in TAS: Up to$20,000
  • HomeBuilder Scheme in TAS: $25,000

More info: Go to the Tasmanian Government’s first homeowners website.

 

Queensland: $40,000 for first home buyers

  • First Home Owners Grant in QLD:$15,000
  • HomeBuilder Scheme in QLD: $25,000

More info: Go to the Queensland Government’s first homeowner grant website.

 

Western Australia: $35,000 for first home buyers 

  • First Home Owners Grant in WA:$10,000
  • HomeBuilder Scheme in WA: $25,000

More info: Go to the WA Government’s first homeowner grant website.

The government believes that the HomeBuilder Grant will fund about 27,520 projects (at $25,000 each).

How A Mortgage Broker May Help You With Loans and Mortgage Deals Post-Covid-19 issues?

Mortgage Brokers in Australia

Mortgage Brokers in Australia
A large majority of the Australian population is finding it difficult to repay their home or mortgage loans as the Corona Virus is taking its toll. To deal with such hardships, mortgage lenders have restructured the loan repayment and refinancing policies to help such borrowers with mortgage relief and hardship support policies.

In the current situation, majority of the Australian lenders will allow you to pause or defer your mortgage repayments for upto 3 to 6 months, which is also called, mortgage repayment holiday. You can temporarily halt your repayments however; you need to pay the full amount back at a later date, when the situation clears out. In most cases, you might be charged with an interest rate during the deferred period, which too you can payback over the remaining loan period.

Then again your bank may let you expand your credit terms, keeping your reimbursements lower yet asking you to compensate the advance for longer to cover the additional premium.

What will be the condition of the property market and the home and mortgage loan situations?

According to the executive manager of economic research at REA Group, Cameron Kusher, property exchanges and rental seeking have dropped off significantly as of late. However, he recommends that there is a “decent chance for a solid recuperation”. When the current situation brought to us by the COVID-19 is over, low loan costs, modest funding opportunities and lowered demand will improve house sales and the overall market condition.

Kusher says, “at the point when we do begin to come out of this situation, the expense of borrowing will be extremely low, and it will motivate an increasing number of people to have their home redesigned, shift to another property or construct their dream home. It could likewise empower individuals who are leasing to get into property too,”

However, keep note of the fact that numerous banks and private lenders are presently upholding brief loan in grestrictions for the potential purchasers from specific ventures like the travel, tourism, hospitality, retail, sports, entertainment and recreation industries which have been hit hard by the pandemic.

How to benefit from the changes in the financial industry caused by the covid-19 epidemic?

Refinancing your current mortgage

As new loaning rules are being enforced upon by the banks during thisperiod of emergency, it might be hard to secure refinancing if you are unemployed or is employed in the negatively affected industries. However, In any case, if you are in a position where moneylenders will take you on, the present home loan rates are ready for the picking and banks are consistently searching for clients interested in home or mortgage loans.

Getting into the property market during or post Corona Virus

Apart from that, the drop in the interest rates for home loans (generally fixed interest rates) implies that this might be a perfect time to put resources into your first pad–if you have the right amount of deposit stored. While things have gotten increasingly complex – live auctions and inspections have been restricted, and so, plenty of banks have balanced their loaning models as on account of refinancing – there are ways that first-time home purchasers can excel, similar to the extended loan approval period under the First Home Loan Deposit Scheme.

Choosing a suitable financial support that will not cost you down the line 

For people who are encountering financial hardships due to sudden unemployment or wage cuts, this may mean applying for government assistance as opposed to applying for a new line of credit or credit card to finance a secure living. For entrepreneurs, this is tied in with evaluating government and bank relief eligibility. There’s the Job Keeper scheme available to keep the organisations sailing and Australians employed by means of a financial support in case of salary cuts; struggling businesses can also avail half or full rent payment waivers or deferrals and, many other fee waivers and credit rebuilding or holidays being provided to organisations by the banks.

How will the mortgage brokers be able to help you during this epidemic?

Majority of the mortgage brokers in Australia are still fully active during this time of epidemic. They will be able to find you a suitable and appropriate loan product and a reliable lender in this situation. A few moneylenders are being very cautious and observing a few industries that have been severely affected by the COVID 19 epidemic.

One of the significant changes to the process of application from lenders because of social disengagement has been the way that home loan agents check personal identification. Before the  COVID-19 issues, a broker would be required to have an up close and personal meeting with the client and verify all the proper identification proofs, for instance, visa, drivers permit and Medicare card. However, moneylenders understand that now majority of the clients will not, be able to have a face to face communication and so, have adapted their practices accordingly. Bank of Melbourne, for instance will currently use electronic verification process such as video conference to verify new clients. These new adaptations will demonstrate that ID is no longer an obstruction to a home, personal, car or even mortgage loan application process during the novel Corona Virus epidemic.

If you are having any issue with your mortgage or home repayment or is looking for a way to refinance or borrow personal or car loans during or post covid-19 epidemic, feel free to contact Tassie Mortgage Broker today! We will walk you through the complete process to successfully apply for your home or other loans without any issue.

Business Loan Providers in North Hobart and South Hobart

Business Loan Providers

Looking to grow your business? Are you looking for reliable business loan providers across Hobart, North Hobart and South Hobart? Don’t look further than Tassie Mortgage Broker. With a team of highly experienced business loan specialists and brokers, we will not only help you understand the business loan options available but also handle all the legal work needed to seek the perfect business loan for your needs. We work in tandem with well-reputed lenders to offer a wide range of business loans to match all business needs.

Most Trusted Business Loan Providers in North Hobart and South Hobart
We understand that businesses of all sizes need funding to grow. Tassie Mortgage Broker can help you obtain the best business loan and finance options when banks can’t assist. Running a business is not a walk in the park. As an owner of a business organisation, you already have a lot to handle – from planning, accounting and strategizing to marketing, sales, legal work and many other tasks. A financial crisis or cash flow problem could ruin all the hard work you put in every day. Once you hire us, you can focus more on your business as our highly experienced team of business loan brokers will do everything possible to get you out of the financial turmoil.
As the most trusted business loan providers in Hobart, North Hobart and South Hobart, we work with well-reputed financial institutions and mainstream lenders to get competitive rates and flexible options for our clients. With decades of experience in the business loan and financing sector, we can help you get the right business loan option to fund your business needs. No matter what your business finance needs are; we can help. Whether you need business cash flow loans, commercial property loans or business start-up loans, our brokers can find the solution that best suits your needs. From business loans secured by either commercial or residential property to low-doc loans for the self-employed – we will help you find the right business loan and finance solution that best suits your requirements.
Our Business Loan Brokers Make Things Fast, Easy and Hassle-Free
We take immense pride in providing excellent customer service and a hassle-free and fast application-to-settlement process. You can rest assured that our team of highly experienced business loan specialists and brokers will bring you the best loan options that match the funding needs of your business. Based on your unique set of requirements, we will help you get the best interest rates available.
We Will Find the Most Suitable Business Loan Option for You
At Tassie Mortgage Broker, our highly efficient team of business finance experts work with top financial institutions and mainstream lenders to identify the right loan at the best market rates.

We pay special attention to every minute detail and negotiate with the lenders in a bid to seek market leading finance terms for our clients. After assessing your financial situation, business needs and goals, we will do everything possible to find the best business loan solution for you.
Contact us today if you are looking for reliable business loan providers across Hobart, North Hobart and South Hobart

What Exactly is a Mortgage Broker and Why Should I Use One?

 

Are you undecided about using the services of a mortgage broker or skeptical as to what a mortgage broker can do for you? The purpose of this article is to clarify the many advantages and benefits you will receive when using the services provided by local mortgage broker in Tasmania. I am optimistic that after reading this article Tasmanian will have a much better understanding about the services provided by a mortgage broker, and will consider using a mortgage broker for their mortgage financing needs.

What exactly is a mortgage broker?

Basically, a mortgage broker is a representative for all of the Tasmanian lending institutions in Tasmania. Their function is very similar to that of an insurance broker. A bank representative that works in one particular lending institution is employed by that bank and is aware of every mortgage product that their bank offers. Therefore, when you go into your bank for a mortgage the representative analyzes your situation and chooses the best product their bank offers for your needs. Mortgage brokers act as agents for all Tasmania banks, Credit Unions, Trust Companies, finance companies and individual private lenders. Subsequently, when you visit a mortgage broker for mortgage financing, they analyze your specific situation and choose the best product from one of the 50 Tasmanian lending institutions at their disposal.

In Ontario, mortgage brokers are educated professionals who are licensed and regulated by the Financial Services Commission of Ontario (FSCO). FSCO is merely one of the government agencies that monitors the business practices of mortgage brokers, each province has an agency that provides the same service to Tasmanian. As a result, these agencies certify that Tasmanians are being given reliable protection, a thorough comprehension of mortgage products, and a standard of service to meet their individual needs.

So, how exactly will you benefit by using a mortgage broker?

Save time: Many people try to shop around their own mortgage by traveling to the 5-6 major Tasmanian retail banks, which can be very time-consuming. A mortgage broker will meet you where it’s convenient for you and they will shop your mortgage for you saving you a lot of valuable time.

Credit Score: One of the most important considerations for Tasmanians when shopping around at different banks is their credit score. Each time you go to a bank and apply for a mortgage, they will make a credit inquiry, too many inquiries will negatively affect your credit score. A mortgage broker only requests one credit inquiry and then forwards that to the banks they are shopping.

Save Money: Many people are under the false assumption that it is expensive to use a mortgage broker. In fact, most brokers do not charge any fees because they are paid by the banking institutions for bringing them in business. That’s the best part, you receive unbiased advice about your mortgage and it doesn’t cost you any money.

Best Rates: Using a mortgage broker guarantees you that you will get the best rates available, independent mortgage agents rely on repeat business so they do not play games, they always find their clients the best rates possible. Additionally, as a reward for bringing them millions of dollars per year in business, many banks will offer special rates only available to mortgage brokers for their clients.

Fast Approvals: Usually, a mortgage broker will have your mortgage approved within 24 hours, at the very best interest rates. Even if the retail banks do approve a person’s mortgage fast, it can sometimes take weeks to negotiate them down to their best rate.

Feel At Ease: A mortgage agent will take the time to explain the entire process to the mortgagee, this is especially comforting for first time homebuyers. They will take the time to explain all of the terms and conditions of a mortgage commitment so there are no surprises later. They will usually present more than one option for clients, and be able to explain the differences between each bank, this will help consumers make educated choices about which banks they would rather use.

Where will your next mortgage financing experience be?

Today, it is no longer necessary for Tasmanians to place their trust blindly in their bank for their mortgages. There is now a vast amount of information available to consumers, with all of the available information it is advantageous for consumers to use the services of a Tasmanian mortgage broker to help them analyze which products will best suit their needs. Tasmanians should realize that by using a mortgage broker they are not choosing between a broker and their bank. A mortgage broker can place your mortgage with your bank if that’s what you ultimately decide. What you should ask yourself though is if you are a client at TD Bank do think the bank representative will tell you if Scotia bank has a better interest rate? Your mortgage broker will.

Why You Should Use a Mortgage Broker?

Who Should Use a Mortgage Broker? Everyone!

What is a mortgage broker?

There are still a lot of misconceptions and misunderstandings out there when it comes to mortgage brokers and what they do.

A mortgage broker is a professional who is licensed with the Real Estate Council. In order to obtain this credential, a mortgage broker is required to meet educational and professional conduct requirements, and complete background security checks.

How is a mortgage broker different from a bank?

A mortgage broker should never be compared to your local financial institution. The purpose and function of each is very different. An independent mortgage broker is just that-independent-meaning they have no association with any one lender. That means it’s their job to offer you unbiased advice.

Essentially, they’re experts who are trained and licensed in the business of mortgage financing. Their primary function is to work for you-not the lender! They shop the mortgage market for the best rate, term, and product for the consumer, but they also offer more than this-providing debt consolidation solutions and credit recovery strategies.

Best of all, a mortgage through a broker operates in the same way as the one you would get through your local financing institution. Online banking, accelerated payments, and pre-payment options are all available. It’s easy and hassle-free.

MYTH#1: Interest rates through a mortgage broker are high.
TRUTH: The industry’s lowest interest rates are only available through a mortgage broker.

Why should I use an independent mortgage broker?

It pays to work with a broker who will represent your interests and ensure the mortgage you get is the one that’s best suited to your needs. Mortgage brokers have direct access to every major lender across Canada. Whether it’s a chartered bank, trust or insurance company, or private lender, each offers different rates and product features. Most important for you to know is that many of these lenders are only accessible through a mortgage broker. You will want to ensure you get the one that’s right for you.

Once you have decided where to apply, obtaining mortgage approval is often dependent on the way your application is presented and who it gets sent to. A mortgage broker is trained to present your application so it will get an immediate, positive result. The turnaround time for a broker to get a response from a lender and secure you financing can be within just 1-3 days, depending on the workload of the lender.

Who pays the mortgage broker?

Mortgage brokers get paid a “finder’s fee” for residential mortgages from the lender once the deal has been completed and funded. Therefore, most brokers do not charge clients for their services. To ensure there are no misunderstandings, make sure you ask your mortgage broker upfront if the lender will be paying their fee.

MYTH #2: A mortgage broker only deals with people who have bruised credit
TRUTH: Whether you have good credit or poor credit, a broker can be a valuable asset.

Independent statistics tell the story… the use of mortgages brokers continues to grow in leaps and bounds each year as people get a better understanding of what they do.

If you’re considering using a broker, ask your neighbors or friends who they know or have dealt with in the past. Get to know the broker you’ve selected. Are they affiliated with a lender? How do they go about finding a mortgage? If you’re a busy person, ask if they will come to your office or home to talk about a lender’s offer. Most importantly, ask to review your credit bureau with the broker.

Remember, going through a big bank that offers you only one “posted” rate could cost you thousands of dollars. Why shell out extra money when you don’t have to?

Secret Tips To Increase Your Chances Of Getting A Personal Loan Approved!

In today’s competitive market, it is difficult to get a personal loan without hassle. You need to follow a few certain procedures to solidify your likelihood of getting approval on the funds that you are seeking. You may want to take out a personal loan for many reasons. Maybe you are interested in buying a car, consolidate your debt, renovate your house, finance your dream holiday or get married. Regardless of the reason, a personal loan is a great way to help achieve your dream sooner.

Here are a few tips that you can follow to improve your chances of getting the funds that you are seeking:

How To Choose The Right Professional Mortgage Broker?

Purchasing a home can be a daunting task and if it is your first time, you might not be aware of all the ins and outs that are involved in taking out a home loan too. Hiring a mortgage broker to purchase a home can be more beneficial than you can think, when dealing with a lender or bank. Mortgage brokers are available to understand your needs and help match your needs with the appropriate home loans form a wide selection of lenders. However, it is important to choose the right brokers to get the job done right. You need a professional who is knowledgeable, accredited and are affiliated with a wide range of lenders to help you out effectively.
Without further ado, let us look at some points to help you understand the process of choosing the right professional broker for your next purchase:

Advantages and Disadvantages of Hiring A Mortgage Broker

Mortgage brokers can help you find the perfect loan deal that suits your needs. However, it is still necessary to weigh your potential downsides before hiring one.
When you are searching for a mortgage, we all tend to enlist the services of a mortgage buyer to find the best terms and rates available. However, ever since the global real estate market crash in 2008, the business practices of the brokers have come under scrutiny. While an experienced mortgage broker can help you find the best mortgage options for you, there are the ones who can rip you apart for their own good! Before committing to the services of one mortgage broker it is necessary to know all their advantages and disadvantages to help make up your mind on choosing the right broker for your services.

Small Business Loan Myths Debunked

Over the course of time, there has been a drastic change in contemporary lending standards, especially with the advent of non-bank lenders across various markets. There are plenty of misconceptions regarding how to secure a small business loan. These small business loan myths can mislead people when they look for business finance. Here we have debunked some of the most common small business loan myths while explaining why they don’t stand up.

Things To Do Before Applying For A Home Loan That Can Maximise Your Chance Of Approval

Buying or building your dream home is one of the biggest investments you will make in a lifetime. Applying for a home loan is one of the first things to do when purchasing a property or building a house from the ground up. You need to have proper clarity about your finances and options to make sure the loan approval process goes without major hiccups along the way. The loan application-to-approval process is not a walk in the park and a single wrong decision can make you less desirable to a lender.
Will I get the dream home? Will my home loan be approved? Such questions can flood your mind unless you follow the proper guidelines before applying for a home loan. There is so much you can do to maximise the chance of your home loan getting approved – from checking your credit rating to being completely honest about your work and financial situation. Lenders pay special attention to every minute detail when making a decision about your home loan.
Here are some of the things you can do before applying for a home loan to make your application more desirable to a lender.