A step-by-step process on the government building grants
Building Advice, Recent News
TLDR:
Government grants can make building your first home more affordable if you follow the right steps. Understand what grants you’re eligible for, get your finance sorted, secure your land, choose a builder who knows the process, sign your contracts on time, and make sure your build starts within grant deadlines. Stay on top of paperwork and communication, and you’ll be on your way to unlocking support and getting into your new home sooner.
Need more help? Read on below for our step-by-step guide to walk you through the whole process.
Whether you’re building your very first place or planning a home that fits your growing crew, understanding how government grants work can make a massive difference to your budget and how quickly you get the keys. In Australia, there are a variety of government building grants, first home owner grants, and other incentives designed to help first home buyers get into the property market sooner.
This step-by-step guide walks you through the whole process, from finance and land to design, contracts and grant approval, so you know exactly what’s ahead and how to make the most of the support available.
Step 1: Understand the grant options for first home buyers
Before jumping into construction, you need to get familiar with the various support programs available for first home buyers and building projects. In Australia, the federal and state governments offer different incentives:
- The federal government provides schemes like the First Home Guarantee and the 5% Deposit Scheme, which support first home buyers with lower deposits and smaller loans.
- Each state and territory has its own first home owner grants, stamp duty concessions and sometimes building‑specific grants for new homes.
- For example, in Western Australia, the previous federal program HomeBuilder Grant has closed, so you’ll need to check what current programs apply in your state.
Why this matters: Knowing what you qualify for sets your expectations, shapes your budget, and ensures the timing of your build works in your favour.
Step 2: Check your finance & eligibility
Once you know what grants are available, it’s time to look at your finances and eligibility.
Chat to a mortgage broker or lender about:
- How much you can borrow
- How much deposit you need
- Your repayment comfort zone
Confirm whether you qualify for first home owner grants or building incentives in your state.
Pro tips:
- Keep your documents handy: your payslips, savings, proposed build contracts, and land purchase details if applicable.
- Ask your broker for a “letter of eligibility” or pre-approval to strengthen your position when you choose a block or sign with a builder.
Step 3: Secure your block of land or site
Before building, you’ll need your land locked in where the new home will go before anything else.
- Choose a location that aligns with your lifestyle, budget and grant eligibility. Read more about what to look for in a House & Land package here.
- Make sure the land is eligible for the grants you’re applying for.
- Sign a land contract if required, so you hold the site and can proceed to building.
Why it matters: Many building grants require your land to be secured and your building contract to be signed within certain timeframes. Delays in this step could disqualify you from grant access.
Step 4: Select your home design & builder
With land secured, you can now move into selecting your home design and choosing a builder. Since grants for building often depend on building a new home (rather than buying an existing house), you’ll want to be clear on the build contract.
Check:
- What’s included in your design
- Any upgrades you want and overall costs
- Whether the builder is licensed, experienced, is aware, and meets grant requirements (such as commencement timeframes, value limits, etc.).
- Verify whether your total land + build costs stay within any threshold required for the grant.
Why it matters: If your build doesn’t fit the criteria, you may lose access to the grant or have to pay more than planned.
We’ve put together a helpful guide for some questions to ask your builder before you start.
Step 5: Sign the building contract & meet key timeframes
Signing your building contract is a big milestone, and it often triggers grant deadlines.
Before signing:
- Finalise your working drawings, site plan, engineering reports and builder quotation.
- Confirm all inclusions
- Ensure your contract is compliant with grant requirements (e.g., for first home owner grants or building grants in your state).
- Confirm when construction must start and complete as per grant rules.
Pro tip: Delays here often cost eligibility. Make sure you understand your contractual obligations and grant conditions, and have your build start on schedule.
Step 6: Arrange unconditional finance approval
With the contract signed, now it’s time to submit your full application to the bank.
You’ll provide:
- Land and building contracts
- Savings evidence, like your deposit proof
- Any required and supporting documents to the lender
Once approved, you’ll be ready for settlement of land (if applicable) and hand over of build site.
Why it matters: Without finance in place, you cannot proceed to settlement or building commencement, both of which may be required by the building grant.
Step 7: Settlement & building commencement
After settlement:
- For land purchase: You’ll settle on the land and take legal ownership.
- For building: You’ll apply for relevant permits (building permit, local council approvals), hand over the site to the builder, then construction starts (often slab down).
- Many building grants require the build to commence (or slab laid) by a certain deadline to remain eligible.
Why this matters: Grants often require construction to begin by a certain date. Hitting this milestone keeps your eligibility intact.
Step 8: Claim your grant & manage construction
Having met the criteria (land secured, contract signed, build started), you can now apply or claim your grant (if not already lodged).
During construction:
- Monitor builder progress, maintain communication, and keep records.
- Understand what happens if changes or delays occur and how that might affect your grant eligibility.
- Keep every document.
- Keep budgeting for potential variations and ensure you still meet the loan repayments.
Important note: Some old grants (like the original HomeBuilder grant) are now closed. Always confirm current programs for your state.
Step 9: Handover & moving in
When construction wraps up:
- Complete your final inspections and obtain builder handover documents.
- Make sure you understand any final grant conditions (like living in the home for a minimum period)
- Move in and start enjoying your new home!
Why it matters: Following through on all conditions ensures you don’t face future issues with lenders, grants or state audit checks.
Step 10: Ongoing Ownership and Compliance
After you’re in:
- Meet any “owner-occupier” requirements
- Keep your loan in good standing
- Stay aware of future schemes that could benefit you later
Final Thoughts
For first home buyers looking to build, leveraging government building grants in Australia and first home owner grants can dramatically reduce your cost and shorten your path to home ownership. By following this clear step‑by‑step process, understanding the incentives, securing land, selecting a home design and builder, signing contracts, obtaining finance, commencing construction, and applying for grants, you position yourself for a smoother journey.
Reach out to us if you’d like assistance reviewing your eligibility, preparing your application or selecting the best builder. Let’s take the first step to get you moving into your new home sooner with confidence.
Explore more blogs
Building Advice, Recent News
Questions to ask your builder before you start
Building your first home is a big moment; exciting, a little overwhelming, and full of “I hope I’m doing this right.” Don’t stress, we’ve put together a ...
Building Advice, Recent News
What to look for in a house and land package
Choosing a house and land package is an exciting way to lock in your dream home and the perfect block in one go. From location to inclusions and build quality, ...
Building Advice, Recent News
9 benefits of single-storey homes for first-home buyers
If you're building a house for the first time, the decision between a single-storey or double-storey home can feel overwhelming. You're probably thinking about your lifestyle, budget, location, and the long-term. For many solo individuals, couples, and young families, a single-storey home offers the perfect balance of practicality, affordability, and future-readiness.
