Before Your Homebuilder Extension: Read These 3 Tips

Planning a homebuilder extension? Before you sign any contracts or pour a single dollar into your dream renovation, you need to hear this. Too many Australian homeowners have made the same avoidable mistakes: leaving them with blown budgets, delays, and sometimes, legal battles. So what’s the truth behind your next homebuilder extension? Let’s break it down.

Here are 3 expert tips that could save you thousands and hours of stress.

1. Your Builder’s Quote Might Be Too Good to Be True

You’ve likely heard: “If it sounds too good to be true, it probably is.” That applies more than ever in the world of homebuilder extensions. Some builders underquote to win the job, only to hit you with hidden extras later.

Expert Tip: Always request a fully itemised quote and compare it with at least two other builders. Ask: What’s not included in this quote? If they hesitate, walk away.

2. Don’t Underestimate Council Approval

Many homeowners assume their builder will ‘handle it’. But the reality is, homebuilder extensions often run into council red tape that can delay or derail your plans.

Expert Tip: Before engaging a builder, speak with your local council or a private certifier to confirm what’s allowed on your property. Don’t leave approvals to chance—it could cost you months and thousands.

3. Poor Planning = Budget Blowouts

One of the biggest traps is rushing into the build without solid planning. That dream open-plan kitchen or extra bedroom can turn into a nightmare if your budget hasn’t factored in structural changes, material delays, or unforeseen site issues.

Expert Tip: Work with a builder who includes a pre-build planning phase. This includes soil testing, architectural plans, and fixed-cost contracts that limit surprise expenses. It might cost more upfront but saves you in the long run.

Why was the Homebuilder Scheme extended?

It was not anticipated just how successful the original HomeBuilder Scheme would be and within a matter of months, an estimated 27,000 new homes were contracted to be built as a result of the offering.

At its announcement, it was estimated that the HomeBuilder Scheme Extension would contribute to a further 18,000 new home builds, which would mean approximately 42,000 new homes were built off the back of the Scheme and the Extension combined.

How does the HomeBuilder Extension Scheme compare to the initial Scheme?

It is important to remember that the HomeBuilder Scheme Extension differs from the original HomeBuilder Scheme. Major differences include the original HomeBuilder Scheme offering a grant of $25,000 compared to the Extension, which allows a grant at a reduced amount of $15,000. This $15,000 is payable on the same types of arrangements for new home builds or renovations, subject to the applicant meeting the other criteria.

The Extension also offers a more lenient deadline, and works are able to be commenced within a six month period from the date of signing the builder’s contract, compared to the three-month timeline of the initial Scheme. This means that under the terms of the HomeBuilder Extension Scheme, homeowners who sign a builder’s contract by 31 March 2021 will have up to 30 September 2021 for the works to commence.

Am I eligible for the HomeBuilder Extension Scheme grant?

You may be eligible for the grant if you are:

• renovating your existing home; or
• purchasing a yet-to-be-built home, including off-the-plan properties.

To receive the grant, the property’s value must not exceed the caps allocated. For new home builds, the sale price must not exceed:

• $950,000 in NSW;
• $850,000 in Victoria; or
• $750,000 in all other States and Territories

and in all states, the value of an existing property cannot exceed $1.5 million prior to the renovation.

You must also meet the income test, meaning that individuals wanting to access the grant must earn under $125,000 and couples who share a household must earn less than $200,000 combined.

Additionally, to apply for the Extension you must not have received the first HomeBuilder Scheme grant in any state or territory of Australia.

Before any work begins, engage a solicitor familiar with property and construction law. We’ll help you review your proposed plans against local council regulations, ensure the right permits are in place, and protect you from future legal complications.