The government had been offering $25,000 grants for building contracts for new builds and substantial renovations but last week extended the scheme for three months at a lower level of $15,000.

Wagga Affordable Homes operations manager Amanda Hallcroft said the scheme had "definitely" helped lift the construction industry in Wagga and extending the deadline would keep up the benefits.

"With everybody that is taking advantage of the scheme, there has been a backlog with lenders due to the workload so [the extension] should help with that," she said.

"Time is the thing. Even though the amount is going down, it's still a great benefit to people looking to build a home.

"For us as a business, this has been the busiest we have ever been for new builds, mainly the new suburbs: Lloyd, Estella, Gobbagombalin and Boorooma."

The federal and NSW governments have not published figures for HomeBuilder grants below the statewide level, but other statistics suggest that Wagga homeowners have been keen to cash in.

A NSW Revenue report showed that Wagga's postcode had the 11^th highest use of the state government's First Home Owner grants for new homes during October.

During that month, there were 13 grants given in the 2650 postcode for a total value of $130,000.

Hotondo Homes builder Craig Keogh also said the scheme had definitely helped the construction industry in Wagga.

"We're definitely busier than normal. We only deal in new homes so I can't speak to the renovations side of things," he said.

"Everybody who comes in is aware of the grants and mentions them."

Mr Keogh said the grant extension would help keep up demand up for builders over the next few months.

"It's made a big difference to our workflow and how much we have got on the books," he said.

Riverina MP Michael McCormack said the HomeBuilder scheme's extension "had been welcomed by those in the Riverina building industry" and would protect jobs in construction and the supply chain.

"I have spoken to locals in the building industry since Sunday's announcement and they have told me how much this scheme has helped keep the sector alive and well.

"When the HomeBuilder Scheme was announced in June, Wagga builder Wayne Carter spoke of the benefits such a package would mean to local tradies picking up the tools and getting back to work.

"The nationwide figures are proof that Wayne was spot-on in his judgement. He said people would be dancing in the streets at the news and this extension means they will continue to dance well into the New Year."

Labor housing spokesman Jason clare said the changes to the HomeBuilder Scheme were "too small to bridge the difference" for the slowdown in home building across the nation.

"More needs to be done to save tradies' jobs," h e said.

"The Morrison spin machine says they are extending the HomeBuilder Scheme because it has been so successful.

"The fact is they have to extend it because the original scheme was too small and was badly designed."