Applications for Australia's most generous housing grant scheme open today in the Northern Territory.

The NT government's new HomeGrown Territory and Fresh Start New Home programs include three different grants ranging from $10,000 to $50,000, encompassing both first home buyers and existing home owners.

Designed to help turn around the territory's net interstate migration deficit, the scheme was a key commitment of the Country Liberal Party (CLP) leading into the NT election in August. 

The government says it will also halt a downturn in the local residential construction sector.

Here's what we know about the program and how it will work.

What grants are available?

Under the scheme, first home buyers can either access a $50,000 grant if they build or buy a new home in the NT, or a $10,000 grant if they purchase an existing property.

In other jurisdictions, building grants for first home buyers vary between $10,000 and $30,000. 

On the other hand, people who already own property can access a $30,000 grant under the program, but only if they build or buy a new home in the territory.

Once the homes are built or bought, owners must live in them for a minimum of 12 months.

The NT government previously said the grants could not go towards a deposit, but on Tuesday Chief Minister Lia Finocchiaro confirmed the incentive could be used at various stages of the purchasing process – including for deposits.

On Monday, Attorney-General Marie-Clare Boothby said people accessing the grants could go to their financial institutions and "discuss how they can make [the grant] work".

"It's up to the financial institution," she said.

"The financial institutions will work with the customers, to be able to work out when that [grant] will be needed to be able to get them into their home."

She said the $50,000 grant would be payable "when the contract of the build happens".

Applications for the grants will be open for 12 months, although there is no time frame on when builds must start by.

Both Australian citizens and permanent residents are eligible.

Legislation for the program will be introduced when NT parliament resumes in two weeks, and is expected to pass in November. 

The government has confirmed that while people can apply for the grants from today, the money will only be distributed after the legislation passes.

The pool of money available for all three grants is $20 million, but the government has said that could increase depending on demand.

Where in the NT is land available?

The NT's minister for housing construction, Bill Yan, said he hoped the scheme would lead to "at least 300 or 400" houses being built.

He said there was sufficient land available to accommodate the builds.

"I think there should be enough [land], based on what's coming up in Darwin," he told ABC Radio Darwin.

"I know there's a heap of new lots coming up in [the Darwin suburb of] Holtze, and there's some other stuff out around that Palmerston area as well."

Mr Yan said vacant lots in the Alice Springs suburb of Kilgariff were also available, and there were plans to release land in Katherine and Tennant Creek. 

"There are a number of blocks in Kilgariff sitting there ready to go, and there's another stage about to come online," he said.

Are there enough builders in the territory?

In the year to July 2024, residential building approvals in the NT fell by 21.5 per cent, compared to a 5.7 per cent decrease nationally.

Considering the downturn, at the time of the CLP's policy announcement, concerns were raised about a likely increase in demand for builders.

Mr Yan admitted there was currently a "shortage" of construction workers in the NT, but said builders would "move from interstate" to fill the void.

"I think we'll probably see ... people come up here and work … with builders that are up here, to start producing some of the homes that we need in the territory," he said.

"Of course, there may be an opportunity for some of those [builders] coming up ... to [access] the grants [themselves]."