Can the HomeBuilder Grant Be Used as a Deposit?

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The HomeBuilder Grant Victoria is a new program announced by the Federal Government to help Australians build a new home or renovate an existing property. Eligible applicants will receive a $25,000 grant towards their build. It’s available to all eligible owner-occupiers, not just first home buyers.

This is good news for all aspiring homeowners, but many questions remain. One of these questions is: can the HomeBuilder Grant be used as a deposit?

In this article, I’ll discuss everything you need to know about using the HomeBuilder Grant Victoria as a deposit.

How Much Do You Need for a Deposit?

homebuilder grant Victoria

So, how much do you really need to put down for a house deposit?

There’s no simple answer to this question. It really depends on several factors – from how much a lender is willing to let you borrow, to whether you’re willing to pay a little more on the loan.

Normally, you’ll have to put down a deposit that’s equal to at least 5% of the sale price to buy a house. This is usually the lowest deposit value that lenders and banks will entertain. However, other lenders may demand more.  Check out this article

Using HomeBuilder Grant Victoria Towards Your Deposit

Now, the question is: can the homebuilder grant be used as a deposit?

At this time, it looks unlikely.

Most banks consider the HomeBuilder Grant in the same light as the First Home Owners Grant, meaning that they view it as a non-genuine savings. However, unlike the First Home Owners Grant which can be factored in as part of your bank deposit, the HomeBuilder Grant is not factored in as part of your savings or deposit.


This is because the government hasn’t exactly said when the HomeBuilder Grant Victoria is going to be paid. Because of this uncertainty, banks will not factor this as part of your deposit when assessing your loan application.

So, at this time, you will not be able to use the HomeBuilder Grant towards your initial deposit.

The Bottom Line

homebuilder grant Victoria

While the HomeBuilder Grant will be able to help you build or renovate your home, it is currently unknown when this grant will be paid. Plus, lenders haven’t updated their policies on whether the HomeBuilder Grant will be accepted as a deposit.

In the meantime, you can start saving up for your deposit. Good luck!

Will Bell Mortgage Broker is a mortgage and finance broker based in Melbourne specializing in residential home loans.  Will is all about the average Australian understanding just enough of the broader economy to take action on your own personal economy.  He is the host of the My Personal Economy Podcast which you can check out here.

Additionally, you can follow him on Facebook


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