The Home Builder Grant Victoria is a new program that has been announced by the federal Government to help Australians build a new home or put the grant towards renovating an existing home. To be eligible for this $25,000 Grant to build a new home or renovate is not just first the first home buyers, it is available to all eligible owner occupiers as well. 

The news of the Home Builder Grant has sparked excitement for all aspiring homeowners, but a question has been raised, that question is “Can the Home Builder Grant be used as a deposit”?
Within this article, I will explore and discuss everything you need to know regarding the Home Builder Grant and if using it as a deposit is in fact a possibility.

How Much Do You Need for a Deposit?

Buying your first home can be daunting, you have so much to think about. The first step you do is start saving your money. How much do you really need to put down for a house deposit? 

In Reality, there is no simple answer to this question, it really depends on several factors. How much are you looking to spend? How much is the lender willing to let you borrow? Are you willing to pay a little more on the loan?
Normally you would have to put down a deposit that is equal to at least 5% of the sale price you are looking to purchase. This is usually the LOWEST deposit value a lender and banks will entertain. However! Other lenders may request more.

Check out this article

Can the HomeBuilder Grant Be Used as a Deposit?

Using HomeBuilder Grant Victoria Towards Your Deposit

Now we have covered the basics, let’s get to the hard hitting question.Can the Home builder Grant be used as a deposit? 

At this point in time, it looks unlikely, most banks consider the Home Builder Grant in the same light as the First Home Owners Grant, meaning 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

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 have not 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


Services we offer:

  • First Home Buyer Loans
  • Property Investment Loans
  • Mortgage Consultation
  • Loan Prequalification
  • Debt Consolidation
  • Refinancing
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