Government HomeBuilder Scheme

17 June 2020

Government HomeBuilder Scheme

Government HomeBuilder Scheme


What is the HomeBuilder Scheme?

Last week, Prime Minister Scott Morrison announced HomeBuilder Scheme. It’s a $25,000 tax-free grant that is designed to help eligible people to:

  • build a new home, or
  • to renovate their existing home.

The HomeBuilder grants are available between now and December 31, 2020. It’s a move to try and rebuild the Australia economy after the impact of the coronavirus restrictions.

As long as you’re an eligible applicant and you have a building contract in place by the end of this year, you’ll receive the $25,000 tax-free HomeBuilder grant. Your building work will need to commence within 3 months of your contract date.

Eligibility criteria for the HomeBuilder Scheme

To be eligible for the HomeBuilder Scheme, you need to meet the following criteria:


  • If you’re single, you need to be earning less than $125,000 per year.
  • If you have a partner (married or de facto), you need to have a combined income of less than $200,000.

Property value

  • If you’re building a new home, it needs to be valued at less than $750,000. Any type of home can be built (for example, a freestanding house, or an off-the plan unit/apartment or townhouse).
  • If you’re renovating your existing home, the value of the renovation needs to be between $150,000 and $750,000. The total value of your home must be less than $1.5 million.


You must be building or renovating a property to live in, not buying or renovating an investment property.

Age and citizenship

  • You must be aged over 18 and an Australian citizen.

Using the HomeBuilder Scheme with the First Home Owners Grant (FHOG)

The HomeBuilder Scheme can be used in conjunction with the First Home Owners Grant, provided you’re eligible for both. The FHOG in New South Wales is $10,000.

Using the Home Builder Scheme with the First Home Loan Deposit Scheme

The HomeBuilder Scheme can also be used in conjunction with the First Home Loan Deposit Scheme (FHLDS), as long as you’re eligible for both Schemes.

The FHLDS can help you to avoid the cost of lenders mortgage insurance (LMI) if you’re building a new home and you don’t have a 20% deposit. Lenders usually charge you LMI if you don’t. Avoiding LMI can help you to save more than $10,000 on an average-sized mortgage.

The FHLDS is available for the first 10,000 eligible applicants from July 1, 2020. You need to raise at least 5% of the deposit for your new home yourself, and the government will guarantee the difference between your deposit and the 20% that lenders require to waive the LMI requirement.

Using the Home Builder Scheme with the First Home Super Saver Scheme

You can also use the HomeBuilder Scheme in conjunction with the First Home Super Saver Scheme (FHSS) if you’re eligible for both Schemes.

The FHSS allows you to withdraw up to ,000 of voluntary additional super contributions as a deposit for your first home. Normally, you can’t withdraw your super until you’re at least 55 and you’ve met a condition of release, like retiring from the workforce.

You can apply for the HomeBuilder Scheme in New South Wales through Revenue NSW.

How we can help

At Wisebuy Investment Group in Newcastle, our experienced and licensed brokers can help you to take advantage of the HomeBuilder Scheme by getting a home or renovation loan.

As the best mortgage broker Newcastle has to offer, we’ll take the time to understand your individual situation before providing you with advice. We also understand the lending criteria of different lenders, so we can recommend an appropriate lender for your situation and help you with your loan application. And best of all, our service is free!