The HomeBuilder program, a $25,000 grant, is available to eligible owner-occupiers (including first-home buyers) wanting to substantially renovate their existing home or build a new home. This grant is tax-free and is available for contracts signed between June 4 2020 and 31 December 2020 with construction to commence within 3 months of the contract date. The government hopes that this will lead to between 25,000 and 30,000 new builds or significant renovations as they anticipate that the housing industry will go through a tough period following the economic fallout from COVID-19.
As finance professionals we sometimes catch ourselves using jargon and acronyms that may inadvertently render our message useless to a person who is not familiar with the language of a lender.
With this in mind, we thought it was a good idea to put together a guide to help you make the most of your finances, by understanding some of the banking terms that are commonly used in the ever-changing world of finance.
On January 1st 2020, the government rolled out their First Home Loan Deposit Scheme (FHLDS). This scheme is designed to help millennials buy a home sooner by removing the extra cost of Lender’s Mortgage Insurance (LMI).
Ten thousand borrowers will be eligible for the scheme this financial year with 3,000 spaces having already been taken. Another 10,000 spaces will become available from July 2020.
The Reserve Bank of Australia has delivered its final cash rate announcement for the year with the decision to leave the rate unchanged at 0.75%.
In making the decision the RBA appears to be assessing the impact on the broader economy of the three previous cash rate reductions together with recent tax cuts, government spending on infrastructure and signs of improvement in the resources sector.
The RBA has decided to leave the official cash rate unchanged at 0.75% as it assesses the impact of its June, July and October cuts.