Melbourne Home Builder FAQs | Keycon Constructions

Question 1

How much does it cost to build a house in Melbourne?

Accepted Answer

Most new homes in Melbourne cost between $14,500 and $15,500 per building square for standard to mid-range construction, and $16,500–$18,500 per building square for genuinely custom, architect-designed homes. For a typical 200m² family home, that puts the build alone at approximately $322,000–$350,000, excluding land, site costs and stamp duty. At Keycon, single-storey homes typically range from $14,500 to $16,500 per building square, while double-storey homes range from $17,500 to $21,500 per building square. These rates include fixed site costs and many luxury inclusions.

Question 2

What is the cheapest way to build a house in Melbourne?

Accepted Answer

The cheapest approach is usually a single-storey home on a flat, easy-access block, built from a standard design with minimal upgrades. A single-storey build generally costs less per square metre because it avoids the additional steel, scaffolding and staircase required for a double-storey home. However, on a small or expensive block, building upward may still cost less overall than purchasing more land.

Focus on three decisions to keep costs down: choose a standard floor plan instead of a custom design, use a simple rectangular footprint, and finalise all selections before signing the contract. Changes requested after signing can add variation costs, extend the construction timeline and quickly push the project over budget.

Question 3

Why do builders' advertised prices never match the final cost?

Accepted Answer

Advertised “from” prices often differ from the final cost because they usually cover only the base build. They may exclude site costs, council fees, driveways, landscaping, fencing, window furnishings and upgrades selected during the colour appointment.

A house-and-land package advertised at $550,000 in Melbourne’s growth corridors can commonly cost an additional $50,000 to $80,000, bringing the ready-to-move-in total to approximately $600,000–$630,000. The gap typically comes from site costs exceeding the provisional allowance ($10,000–$30,000), common buyer upgrades ($20,000–$50,000), and expenses such as landscaping, fencing and blinds.

Ask every builder for a fully itemised tender rather than relying on a headline price. The tender should clearly identify what is included, what is excluded, which amounts are fixed, and which items remain provisional allowances or buyer-selected upgrades.

A more complete quote makes it easier to compare builders on a like-for-like basis. Look beyond the starting price and compare the site-cost allowance, standard finishes, appliances, heating and cooling, flooring, electrical provisions, external works and any items still listed as provisional sums or prime cost allowances.

Question 4

What are site costs and how much should I budget?

Accepted Answer

Site costs cover everything needed to make your block buildable: soil testing, excavation, retaining walls, rock removal, service connections and any extra engineering your soil classification demands.

Budget $10,000–$30,000 for a flat, easy-access block with good soil, and $60,000–$100,000+ for a steep block, reactive clay, rock, or difficult access. Melbourne's western suburbs sit on reactive basalt clay that can add tens of thousands to your slab; the bayside sandbelt is typically far cheaper.

Footing costs can vary by as much as $50,000 between Class H1/H2 and Class P sites. That is why arranging a soil test before committing to a contract price is a worthwhile investment.

Question 5

How much does a soil test cost in Melbourne?

Accepted Answer

For a standard new-home block in Melbourne, a residential soil test and AS 2870 site-classification report typically costs $500–$900 plus GST, although some basic tests are advertised from about $390–$490 plus GST. Larger, sloping or difficult-access sites, deep or uncontrolled fill, extra boreholes and specialised laboratory testing can increase the cost to $1,500–$3,000+. A full geotechnical investigation for a complex development generally starts from around $3,000.

The test involves drilling two to four boreholes and produces a geotechnical report classifying your soil under AS 2870. You legally cannot get a building permit without one, and your engineer can't design your footings until it's done. Standard turnaround is 5–10 business days.

Question 6

Should I add a contingency to my building budget?

Accepted Answer

Yes. As a practical rule, allow a contingency of 10–15% above the contract price. This buffer should cover expenses outside the building contract—unexpected costs that may arise during construction, such as additional rock removal, unforeseen site conditions, or upgrades and variations.

Keep this contingency separate from your deposit and planned upgrade budget, and avoid using it for discretionary selections early in the project. Labour and material costs can still rise before construction begins, so finalising selections early and securing a fixed price for as many items as possible will give you greater cost certainty.

Question 7

How long does it take to build a house in Melbourne?

Accepted Answer

Most standard Melbourne builds take 9–12 months from first appointment to handover — roughly 2–3 months of pre-construction (design, tender, colour selections, permits) and 5–7 months on site.

Custom homes typically run 9–12 months. Luxury and architecturally complex homes run 12–18 months. If your project needs a town planning permit — which most dual occupancies do, and some single dwellings — add several months to the front end, because that's where nearly all the variation lives.

Building permits alone take 6–10 weeks to process in Victoria.

Question 8

What are the stages of building a house?

Accepted Answer

Victorian residential builds follow five construction stages, and your progress payments are tied to them:

Base / slab — site prep, footings, concrete slab poured

Frame — timber or steel frame erected and inspected

Lock-up — roof, brickwork, external doors and windows in; home is weathertight, and rough electrical, plumbing and ducting go in

Fixing — internal linings, cabinetry, doors, skirting, tiling

Final / practical completion — final fit-off, painting, cleaning, inspections, handover

Before any of that, pre-construction covers design, tender, colour and electrical appointments, contract signing, permits and finance approval.

Question 9

What causes delays in a home build?

Accepted Answer

The most common causes of delays are developer, council and planning approvals; client-requested changes after the contract is signed; wet or extreme weather; long lead times for custom materials; and limited trade availability during peak periods. In Melbourne, winter conditions can particularly affect excavation, slab and framing work.

The delay you can control most is making changes after construction begins. Moving a wall may require demolition, revised drawings, new materials, additional labour and another inspection, potentially adding 4–8 weeks. Even a smaller change, such as relocating a power point, can require a return visit from a trade. Finalising your layout, electrical plan and selections during the tender and colour appointments helps keep the build on schedule.

Question 10

Can I make changes after signing the building contract?

Accepted Answer

Possibly, but only if your builder agrees and the contract allows it. Some volume builders do not permit changes after signing because selections, pricing, engineering and construction schedules have already been finalised. This is why the tender, colour and electrical appointments should be treated as your main opportunity to confirm every detail.

Custom builders may offer more flexibility, but any approved change should be documented in a written variation showing the additional cost and expected time impact before work proceeds. Variations may extend the building time, particularly when completed work, drawings, permits, engineering or materials must be altered. Changes also become more expensive and disruptive as construction advances. Finalising your design and selections before signing provides the greatest cost certainty and helps keep the build on schedule.

Question 11

Do I need a planning permit to build a house in Melbourne?

Accepted Answer

Not always. A single dwelling on a standard residential block may not require a planning permit if the proposal complies with the relevant planning controls and ResCode requirements, including setbacks, site coverage, overlooking and overshadowing.

A planning permit is more likely to be required if the land is affected by an overlay—such as heritage, significant landscape or erosion management—or if the proposal includes two or more dwellings on one title or does not comply with ResCode. Dual-occupancy developments commonly require planning approval and may involve neighbour notification, objections and additional assessment time.

A building permit is separate from a planning permit and is required before construction can begin. Where a planning permit is needed, it must generally be approved first so the building surveyor can assess the plans and issue the building permit.

Question 12

What's the difference between a planning permit and a building permit?

Accepted Answer

A planning permit, issued by the local council, assesses whether the proposed use and development of the land is appropriate for the site. It considers matters such as zoning, overlays, setbacks, neighbourhood character, overlooking and overshadowing. A building permit, issued by a registered building surveyor, confirms that the detailed plans and construction work comply with the National Construction Code and Victorian building regulations, including structural, fire-safety, health and amenity requirements.

Not every project needs a planning permit, but every new home requires a building permit before construction can begin. If planning approval is required, it generally comes first; the building surveyor then assesses the approved drawings and technical documentation before issuing the building permit.

Question 13

What should I look for when buying land to build on?

Accepted Answer

Before buying land, assess the block’s slope, soil conditions, orientation, easements, planning overlays and site access. A block with a lower purchase price can still cost $50,000 or more in additional site works once the footing design, excavation and retaining requirements are confirmed.Q

Before signing a land contract, work through this checklist:

Confirm the soil conditions — arrange a soil test where possible, or ask the developer for available geotechnical reports and the typical soil classification within the estate.

Measure the fall across the block — a slope of around one metre or more can result in additional excavation, retaining walls, split-level design work or specialised foundations.

Review the planning controls — obtain a planning property report and check the zoning and any overlays that may restrict the design, removal of vegetation or development of the land.

Locate all easements — drainage, sewerage and utility easements can reduce the usable building area and limit where the house, garage or other structures can be positioned.

Read the developer’s design guidelines — many Melbourne estates set requirements for façade materials, roof design, setbacks, landscaping and minimum floor area, which may affect both your design options and budget.

Confirm the title and settlement timing — if the land is not yet titled, ask for the expected registration date and understand that delays can postpone finance approval, building permits and the construction start.

Question 14

How long does it take to get a building permit in Victoria?

Accepted Answer

For a straightforward new home in Victoria, allow approximately 6–10 weeks for a building permit once the building surveyor has received a complete set of drawings, engineering, energy documentation, soil and footing reports, and other required approvals. The assessment can take longer if information is missing, the design needs amendments, or further engineering is required.

If the project also requires a planning permit, that approval generally comes first and should be allowed for separately. A planning permit commonly takes 3–6 months, but the timeframe may extend if council requests further information, neighbour objections are received, or the matter proceeds to VCAT. The building-permit assessment can begin in full once the planning approval and endorsed plans are available.

Question 15

How do I check if a builder is registered in Victoria?

Accepted Answer

Check the builder’s details on the public practitioner register maintained by the Building and Plumbing Commission (BPC), which replaced the Victorian Building Authority on 1 July 2025. Search the individual practitioner or company name and confirm that the registration is current, the registration category covers the work being proposed, and the details match the name shown on the quotation and contract.

Under the Building Act 1993, domestic building work valued above $10,000 generally must be carried out by a registered builder. Certain specialised work—including re-stumping, re-blocking and demolition—requires an appropriately registered practitioner regardless of the contract value.

Before signing or paying a deposit, ask for the builder’s registration details and evidence of the required domestic building insurance or Home Warranty cover for your project. Using an unregistered or incorrectly registered builder may leave you without important statutory and insurance protections and can create problems with permits, finance and dispute resolution.

Do not rely only on a registration number supplied in advertising. Verify it independently on the BPC register, check that the registered name matches the contracting entity, and ask the builder to explain any conditions, limitations or recent disciplinary findings shown on the record.

Question 16

What questions should I ask a home builder before signing?

Accepted Answer

Before signing, ask questions that reveal how complete the price is, how the builder manages risk and communication, and what support you will receive after handover:

Is your registration current and appropriate for this project? Confirm the registration category and verify the details independently on the BPC register.

Is the contract price genuinely fixed? Ask which items are provisional sums or prime cost allowances, how those amounts were calculated, and what happens if the actual cost is higher.

Has the site been properly assessed? Confirm whether a soil test, feature survey and preliminary engineering have been completed, and whether site costs are fixed or only provisional.

What is included in the base price? Request a detailed inclusions schedule showing the standard finishes, appliances, heating and cooling, flooring, electrical allowance and external works, as well as the items likely to require an upgrade.

What is your realistic build timeframe? Ask for the expected site-start and completion periods, what may extend them, and how the builder’s recent projects have performed against those estimates.

Can I speak with recent clients? Ask for contact details for several clients whose homes were completed within the past 12 months, preferably with projects similar to yours.

Who will manage my project and communication? Confirm your main point of contact, how often progress updates will be provided, and how questions, decisions and variations will be documented.

What happens after handover? Ask about the defect-inspection process, maintenance period, response times and how warranty issues should be reported and resolved.

Question 17

What's the difference between a volume builder and a custom builder?

Accepted Answer

Volume (project) builders work from a catalogue of pre-designed floor plans and standardised selections. Their streamlined process can suit buyers who are comfortable choosing from established layouts, finishes and upgrade packages, but opportunities to adapt the design to a particular block or lifestyle are usually limited.

Custom builders design the home around your brief, lifestyle and land. They can respond to the block’s orientation, slope, views and planning constraints, while giving you greater freedom over the floor plan, façade, materials, finishes and energy-efficiency features. The process is more collaborative and personalised, with the design developed to suit how you want to live rather than adapting your needs to a standard plan.

A custom builder is especially well suited to clients who want a distinctive home, have a challenging or unusual block, or value close involvement throughout the design and construction process. The result is a home shaped around the site and the people who will live in it, with thoughtful details and a stronger sense of individuality.

Question 18

What are red flags when choosing a builder in Melbourne?

Accepted Answer

Requests for an excessive deposit for domestic building contracts valued at $20,000 or more, the deposit should not exceed the 5% legal limit.

Insurance evidence after payment be cautious if the builder will not provide the required Home Warranty or Domestic Building Insurance documentation before accepting a balance of deposit.

A quote that is significantly lower than comparable quotes check whether site costs, essential inclusions, realistic allowances or required works have been omitted.

Unclear provisional sums or prime cost allowances the builder should explain how each allowance was calculated and who pays if the actual cost exceeds it.

Pressure to sign before you are ready allow time to review the contract, inclusions, plans and allowances and, where appropriate, obtain independent legal advice.

No clear written programme the contract or supporting documents should identify the expected site-start period, construction timeframe and circumstances that may extend it.

Question 19

How much deposit can a builder ask for in Victoria?

Accepted Answer

Deposits are capped by law under the Domestic Building Contracts Act 1995: 5% of the contract price if the price is $20,000 or more, and 10% if it's under $20,000. Asking for more is illegal.

Question 20

Is there a cooling-off period on a building contract in Victoria?

Accepted Answer

Yes — five business days from the day you receive the signed copy of a major domestic building contract. If you withdraw within that window, the builder may keep $100 plus any out-of-pocket expenses genuinely incurred before you pulled out.

Question 21

How do progress payments work on a building contract?

Accepted Answer

Progress payments are made at agreed construction milestones rather than according to the builder’s general cash-flow needs. A typical Victorian schedule includes the deposit, base, frame, lock-up, fixing and completion stages. Each payment should become due only after the relevant stage has been completed in accordance with the contract, and you should receive a written claim identifying the stage and amount payable.

The Domestic Building Contracts Act regulates how these payments are structured. If a contract uses a progress-payment schedule that differs from the statutory schedule, the required notice and acknowledgement must be completed before the contract is signed. Before making any payment, confirm that the claimed stage is complete and that the amount matches the contract. Because Victorian deposit and progress-payment rules have recently changed, ask your builder or legal adviser to confirm which requirements apply to your agreement.

Question 22

What are provisional sums and prime cost items?

Accepted Answer

A provisional sum (PS) is an allowance for work that can't be exactly priced when the contract is signed — most commonly site costs, where the real number depends on what's found during excavation. A prime cost item (PC) is an allowance for a product you haven't chosen yet, like tapware or appliances.

Both are estimates, not fixed prices. If the actual cost exceeds the allowance, you pay the difference. The number of PS and PC items in a contract is a good proxy for how much price risk you're carrying — a quote with many large provisional sums isn't really a fixed price at all.

Ask any builder: how many provisional sums are in this contract, and what's your track record of coming in over them?

Question 23

What grants are available for building a new home in Victoria?

Accepted Answer

The main grant available to eligible first home buyers in Victoria is the $10,000 First Home Owner Grant (FHOG). It applies when you buy or build a brand-new home with a total value of $750,000 or less. The property must not have been previously sold as a home, occupied, leased or used for short-term accommodation, so established homes are not eligible.

Applicants must be individuals aged 18 or over, and at least one applicant must be an Australian citizen or permanent resident. The State Revenue Office also considers whether each applicant—and their spouse or partner—has previously owned and lived in a residential property. Previous ownership does not always prevent eligibility if the property was held only as an investment and was never occupied by the applicant. At least one applicant must move into the new home within 12 months of settlement or completion and live there continuously for at least 12 months.

Most buyers apply for the grant through their bank or credit union as part of the finance process, especially when the funds are needed at settlement or for an early construction payment. If your lender is not lodging the application, you can apply directly to the State Revenue Office within 12 months of settlement or construction completion. Always confirm the latest eligibility rules with the State Revenue Office before including the grant in your budget.

Question 24

Do I pay stamp duty when I build a new home?

Accepted Answer

Yes, but the amount of land transfer duty—commonly called stamp duty—depends on how you buy the property. If you purchase vacant land under a separate land contract and then enter into a separate building contract, duty is generally assessed on the value of the land only; the value of the building contract is not included.

Eligible first home buyers may pay no duty when the dutiable value is $600,000 or less, or receive a reduced amount when it is between $600,001 and $750,000. For vacant land, the dutiable value used for this test is the land value, not the cost of the future building contract. Eligibility and occupancy requirements apply, so confirm the relief with your conveyancer before settlement.

If you buy an eligible property off the plan before construction is complete, an off-the-plan concession may reduce the dutiable value by excluding eligible construction costs incurred after the contract date. Victoria’s temporary concession has been extended to 31 October 2026 and is available for eligible apartments, units and townhouses in strata subdivisions with common property; it does not generally apply to a standalone house-and-land package outside a strata subdivision.

This is general information only, not financial or legal advice. Duty depends on the contract structure, property value, intended use and buyer eligibility. Confirm your position with your conveyancer and check the current rules with the State Revenue Office.

Question 25

How does a construction loan work?

Accepted Answer

A construction loan funds the project progressively rather than releasing the full amount upfront. After the land settles, the lender releases payments at agreed building milestones—typically base, frame, lock-up, fixing and completion once the builder submits a progress claim and the lender is satisfied that the relevant stage has been completed.

During construction, interest is generally charged only on the amount already drawn, so repayments usually begin lower and increase as more funds are released. When the build is complete and the final drawdown has been made, the loan converts to the lender’s standard home-loan repayment structure.

Plan for two practical issues. First, interest may start from land settlement, even if construction does not begin for several months. Second, each progress payment usually requires lender review or inspection, which can take around 3–7 business days and may take longer during busy periods. Some lenders also charge a drawdown or inspection fee of about $200, so confirm the process, fees and required documents before construction starts.

Question 26

How much deposit do I need to build a house?

Accepted Answer

A 20% deposit of the combined land and construction cost is generally the benchmark for avoiding Lenders Mortgage Insurance (LMI). Some lenders may approve a construction loan with a smaller deposit—potentially up to a 95% loan-to-value ratio—but LMI, lending criteria and additional conditions may apply.

Eligible first home buyers may be able to build with as little as a 5% deposit without paying LMI through the federal First Home Guarantee, with the government guaranteeing up to 15% of the loan. Since October 2025, the scheme has had no income caps and unlimited places. For Melbourne, the combined value of the land and completed home must be within the $950,000 price cap.

The deposit you need will depend on your income, existing debts, credit history, land value, construction contract and lender policy. Speak with a mortgage broker or lender before signing contracts to confirm your borrowing capacity, required contribution and eligibility for any guarantee scheme. This is general information only, not financial advice.

Question 27

Do new homes in Victoria have to be 7-star energy rated?

Accepted Answer

Yes. New homes in Victoria must meet a minimum 7-star thermal performance rating under the requirements that took effect on 1 May 2024. They must also achieve a Whole-of-Home score of at least 60 out of 100, which assesses the expected energy use of fixed systems and appliances, including heating, cooling, hot water, lighting and pool equipment.

A well-designed 7-star home should be more comfortable throughout the year and require less energy for heating and cooling than a comparable 6-star home. Actual savings will vary depending on the home’s orientation, size, construction quality, appliances, energy tariffs and how the occupants use the home.

Seven stars is the minimum standard, not the design limit. Good orientation, effective shading, quality insulation, high-performance glazing, careful air sealing and efficient all-electric systems can improve comfort and energy performance beyond the minimum requirement. Ask your builder to explain the proposed rating and the features included to achieve it.

Question 28

Do new homes in Victoria have to be all-electric?

Accepted Answer

In most cases, yes. Since 1 January 2024, new homes and apartment buildings in Victoria that require a planning permit must be designed as all-electric. This generally means using electricity for space heating, hot water and cooking rather than installing new mains-gas appliances.

The requirement does not generally apply to homes covered by a planning permit issued before 1 January 2024, new dwellings that do not require a planning permit, existing homes with a gas connection, or renovation and extension projects.

An all-electric home can work particularly well with rooftop solar and efficient appliances such as heat-pump hot water and reverse-cycle heating and cooling. These features can reduce reliance on purchased energy and contribute positively to the home’s Whole-of-Home assessment.

Question 29

What inspections happen during a build?

Accepted Answer

Mandatory inspections are carried out by the appointed building surveyor at key stages of construction. These commonly include the footings before concrete is poured, slab reinforcement before the slab pour, the frame before it is covered, and the final inspection before an occupancy permit is issued. The building surveyor not the builder must confirm that each required stage complies with the approved plans and relevant building requirements.

If you have a construction loan, the lender may also arrange an inspection before releasing each progress payment. This inspection is primarily for the lender’s valuation and funding purposes and is not a substitute for a detailed quality inspection.

Before signing, ask your builder how quality is monitored throughout construction, who conducts internal checks, how issues are recorded and rectified, and whether you will receive inspection reports or photographs at key stages. Independent inspections can provide additional reassurance, particularly before work is covered and before the final payment is made.

Question 30

How much does a knockdown rebuild cost in Melbourne?

Accepted Answer

A knockdown rebuild in Melbourne commonly requires an overall budget of $450,000–$900,000+, including demolition, design, approvals, construction and the main costs associated with moving out and completing the site. Premium custom homes on complex inner-suburban blocks can exceed $1 million.

A typical budget may include:

Demolition: typically $15,000–$45,000, with a standard single-storey home often costing $18,000–$30,000. If asbestos is present—which is common in homes built before 1990—allow an additional $5,000–$15,000.

Design and permits: allow approximately $12,000–$35,000 for design documentation, consultants and required approvals.

Council fees: commonly $2,500–$6,000, with some inner-Melbourne councils and more complex applications falling toward the higher end.

Construction: approximately $2,100–$3,900 per square metre for a standard to mid-range home, and $5,000 per square metre or more for a premium custom build.

Temporary accommodation: allow approximately $15,000–$40,000, as you may need to live elsewhere for 9–15 months.

Removal and storage: typically, $3,000–$6,000, depending on the volume of belongings, storage period and number of moves required.

Landscaping, driveway and fencing: often overlooked and frequently $30,000 or more, depending on the site, materials and extent of external works.

The construction contract is only one part of the total project cost. Before committing, prepare a complete budget that also covers demolition, approvals, temporary accommodation, site works, external works and a contingency for unexpected conditions.

Question 31

Is it cheaper to knock down and rebuild, or renovate?

Accepted Answer

It depends on the condition of the existing home and how much of it you'd actually keep. Renovation within an existing building runs roughly $1,600–$3,900/m² in Melbourne — cheaper per square metre than new construction, but only if the bones are sound.

Rebuilding tends to win when the existing home has structural problems, poor orientation, an unworkable layout, or would need re-stumping, rewiring and re-plumbing anyway. It also gives you a 7-star energy-efficient home with a full builder's warranty, which a renovation won't.

Rebuilding on land you already own also avoids stamp duty and agent fees entirely — a saving that often runs to $50,000+ against buying an equivalent established home elsewhere.

Question 32

How long does a knockdown rebuild take?

Accepted Answer

A typical knockdown rebuild in Melbourne takes 12–18 months from the initial consultation to moving back into your completed home. While every project is different, the timeframe generally includes design, approvals, demolition, construction and final handover.

A realistic timeline looks like this:

Design, documentation and permits: 3–6 months

Demolition and site preparation: 1–2 months

Construction: 8–14 months

Final inspections and handover: 2–4 weeks

The approval stage often has the greatest impact on the overall timeframe, particularly where planning permits, overlays or complex site conditions are involved. Weather, material lead times, client-requested variations and council processing times can also affect the schedule.

As a practical guide, homeowners should plan for 9–15 months of alternative accommodation while the project is underway. Working with an experienced builder who manages the design, approval and construction process under one roof can help minimise delays and provide greater certainty throughout the build.

Question 33

What warranty do I get on a new home in Victoria?

Accepted Answer

Two layers of protection.

When you build a new home in Victoria, you benefit from two important layers of protection: statutory warranties and Home Warranty cover. These protections are designed to provide peace of mind during and after construction.

Statutory warranties are automatically included in every domestic building contract under the Domestic Building Contracts Act 1995. They require your builder to carry out the work with reasonable care and skill, use suitable materials, comply with approved plans and specifications, and meet all relevant building laws and standards. These warranties apply regardless of whether they are specifically written into the contract.

For eligible domestic building work valued above $20,000, Home Warranty provides an additional level of protection. Introduced on 1 July 2026, it replaced the former Domestic Building Insurance (DBI) scheme for new contracts signed on or after that date. Home Warranty can provide up to $400,000 in assistance per home and includes cover for major defects for up to six years.

If your building contract was signed before 1 July 2026, your project remains covered by the existing DBI policy and its original terms and conditions. These policies continue to operate separately from the new Home Warranty scheme.

Question 34

What's the difference between Home Warranty and the old DBI scheme?

Accepted Answer

The biggest difference between Home Warranty and Domestic Building Insurance (DBI) is when homeowners can access protection. Under the old DBI scheme, cover was generally only available if the builder died, disappeared or became insolvent. Home Warranty is a first-resort protection scheme, meaning homeowners can seek assistance when a covered defect or issue is identified, without first waiting for the builder to become unable to complete the work.

Home Warranty can provide protection for issues such as lost deposits, incomplete work, and defective or non-compliant building work. It also offers a higher level of cover, with assistance of up to $400,000 per home, compared with the previous DBI limit of $300,000. The scheme is administered by the Building and Plumbing Commission (BPC), which became the sole provider from 1 July 2026.

However, Home Warranty does not apply to every project. Certain residential buildings, including those over three storeys containing more than two homes, are excluded. The scheme also does not protect homeowners who engage an unregistered builder for work that legally requires registration.

Question 35

What happens if I find a defect after moving in?

Accepted Answer

If you identify a defect after handover, the first step is to notify your builder in writing and as soon as reasonably possible, ideally with photographs and a clear description of the issue. Most builders provide a maintenance or defects liability period, commonly around three months after handover, during which they will assess and rectify items that fall within their contractual and statutory obligations.

It's important to recognise that not every concern will necessarily be considered a building defect. Minor settlement, material movement, shrinkage and normal wear and tear can occur as a new home adjusts to seasonal conditions and occupancy. Both homeowners and builders should approach any concerns reasonably and work together to determine whether an issue requires rectification under the contract, statutory warranties or applicable building standards.

If an issue cannot be resolved directly, homeowners can seek assistance through Domestic Building Dispute Resolution Victoria (DBDRV). Under Victorian legislation, most domestic building disputes must first go through the DBDRV conciliation process before they can proceed to VCAT. The Building and Plumbing Commission (BPC) may also investigate certain matters and has powers relating to rectification and compliance.

For both builders and homeowners, good record-keeping is essential. Keep copies of emails, photographs, inspection reports and any correspondence relating to the issue. Clear communication and early engagement often help resolve concerns quickly and avoid unnecessary disputes.

FAQ Page — Home Builder, Melbourne

Cost questions

Timeline questions

Land, permits and site questions

Choosing and vetting a builder

Contracts, deposits and legal protections

Grants, finance and stamp duty

Energy, compliance and quality

Knockdown rebuild

After handover

Contact us

FAQ Page — Home Builder, Melbourne

Cost questions

01How much does it cost to build a house in Melbourne?

02What is the cheapest way to build a house in Melbourne?

03Why do builders' advertised prices never match the final cost?

04What are site costs and how much should I budget?

05How much does a soil test cost in Melbourne?

06Should I add a contingency to my building budget?

Timeline questions

07How long does it take to build a house in Melbourne?

08What are the stages of building a house?

09What causes delays in a home build?

10Can I make changes after signing the building contract?

Land, permits and site questions

11Do I need a planning permit to build a house in Melbourne?

12What's the difference between a planning permit and a building permit?

13What should I look for when buying land to build on?

14How long does it take to get a building permit in Victoria?

Choosing and vetting a builder

15How do I check if a builder is registered in Victoria?

16What questions should I ask a home builder before signing?

17What's the difference between a volume builder and a custom builder?

18What are red flags when choosing a builder in Melbourne?

Contracts, deposits and legal protections

19How much deposit can a builder ask for in Victoria?

20Is there a cooling-off period on a building contract in Victoria?

21How do progress payments work on a building contract?

22What are provisional sums and prime cost items?

Grants, finance and stamp duty

23What grants are available for building a new home in Victoria?

24Do I pay stamp duty when I build a new home?

25How does a construction loan work?

26How much deposit do I need to build a house?

Energy, compliance and quality

27Do new homes in Victoria have to be 7-star energy rated?

28Do new homes in Victoria have to be all-electric?

29What inspections happen during a build?

Knockdown rebuild

30How much does a knockdown rebuild cost in Melbourne?

31Is it cheaper to knock down and rebuild, or renovate?

32How long does a knockdown rebuild take?

After handover

33What warranty do I get on a new home in Victoria?

34What's the difference between Home Warranty and the old DBI scheme?

35What happens if I find a defect after moving in?

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