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House and Land Package Loans

Finance for Your New Build on the Gold Coast

If you’ve found an estate you love on the Gold Coast, understanding how that finance fits together before you sign anything can save you a real headache further down the track.

At Go Mortgage, we specialise in house and land package loans, also known as home and land package loans, for buyers right across the Coast. That means handling the land settlement, coordinating the construction draws as your build progresses, and managing the switch to a standard home loan once you get the keys. 

Our tailored approach to house and land finance ensures you’re set up for handover from day one, without any surprises along the way.

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How House and Land Package Finance Works (the Two Loans)

A house and land package is usually sold as one deal, but it’s financed as two separate contracts. In most cases, they’re bundled under one lender, so you’re only dealing with a single point of contact.

The first is a land loan. This one settles first, and your repayments on the land start as soon as you own the block, well before the builder turns up.

The second is a construction loan. Rather than handing over the full amount upfront, the lender releases funds to your builder in stages as work is completed: slab, frame, lock-up, fit-out, and completion. You only pay interest on the amount that’s drawn down, and once the build is finished, your construction loan converts into a normal principal and interest home loan.

Land loan

Construction loan

When it starts

On land settlement

Once building begins

How it’s drawn

Full amount, in one go

In stages, as the builder completes each milestone

Repayment type

Principal and interest

Interest-only on funds drawn

What happens at the end

Runs alongside the construction loan

Converts to standard principal and interest

Together, these two facilities are what people mean when they talk about house and land loans, and getting the sequencing right between them is most of the job.

For a full breakdown of how the staged payments and lender inspections work, our guide on how construction loans work goes through the process step by step. If you’re looking at rebuilding from scratch, learn more about knock down rebuild loans here.

Turnkey vs Non-Turnkey – What’s Actually Included

Not every house and land package is move-in ready, and this matters for your finances because it affects how much cash you’ll need on top of the loan.

Usually included in a standard package

  • The home design and structural build
  • Standard fixtures – kitchen, bathroom, and flooring inclusions as specified in the contract
  • A fixed-price building contract for the inclusions listed

Commonly excluded (budget for these separately)

  • Landscaping and turf
  • Driveway and concreting
  • Fencing
  • Site costs – these can shift once soil tests and contour surveys come back, and they’re not always known at contract signing
  • Upgrades beyond the standard inclusions, like premium tapware or flooring
A genuinely turnkey package folds most of this in upfront, which is worth asking about directly. If it doesn’t, that gap between the “advertised” price and what you’ll actually need at completion is exactly the kind of funding shortfall we help clients plan for before finance is even approved.
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The Stamp Duty Saving and New-Build Benefits

Because land and build sit under separate contracts, stamp duty is generally charged on the land only, not the build. On an established home, duty applies to the full price, so this structure can add up to a genuine saving. Queensland’s rates and thresholds change over time, so check current settings with our team or the Queensland Revenue Office.

New builds can also qualify for state First Home Owner Grants and the Australian Government’s low-deposit scheme, another perk of home and land package loans that’s easy to miss. Eligibility varies; see our first home buyers page for the current details.

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How Much Can You Borrow? Deposit and Valuation

Lenders will generally fund house and land loans up to 90–95% of the property value, with LMI applying above 80%, though every home and land loan is assessed a little differently by lender policy. Your loan is approved against the lower of your fixed-price contract or the bank’s “as if complete” valuation, not the advertised price.

You’ll also need funds to complete: the total cash across both loans, including anything outside the fixed-price contract. Existing equity can often cover this gap.

Lenders test your repayments at roughly 3% above the actual rate, per APRA guidance. See how much you can borrow, then estimate your repayments once you have a loan amount in mind.

home loan accountants

Watch Out for Split Contracts

A split contract looks like a normal house and land package, but is really one deal dressed as two, common in some multi-dwelling estates where the land has no standalone value. Because it can’t be valued independently, many lenders won’t approve house and land loans against it. Have a broker check the contract structure before you sign.
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Risks and Holding Costs to Plan For

Taking out house and land loans carries more risk than buying an established home, mostly because of the longer timeframe. Keep these on your radar:
  • Title registration delays
  • Builder insolvency
  • Cost variations outside the fixed price
  • Valuation shortfalls at progress stages
  • The jump to principal and interest at handover
  • Holding costs over 12–18 months
  • A 10–15% contingency buffer
Keep a subject-to-finance clause and get a solicitor to review both contracts before signing.
home loan accountants

How Our Gold Coast Brokers Help with House and Land Finance

Getting finance for house and land package deals sorted properly, before you sign anything, is where most of the risk above gets managed. Here’s how we work through it with you:
  • Work out your borrowing power and funds to complete both the land and construction loans
  • Check the actual contract structure, and flag it early if it turns out to be a split contract
  • Get pre-approval before you sign anything with the land seller or builder
  • Compare lenders whose construction loan policies actually suit your chosen builder
  • Coordinate the land settlement, then manage the progress draws as the build moves through each stage
  • Handle the switch to a standard home loan once the build is complete
Couple smiling and enjoying each other's company on a couch.

Get in Touch with Gold Coast Mortgage Brokers Today

Whether you’re building to live in or building as an investment, the starting point is the same: working out your borrowing power across both loans. If it’s the latter, learn more about property investment on the Gold Coast here. 

If you’d like to talk through your options, get in touch with Gold Coast mortgage brokers to find the right person for your situation. There’s no cost to speak with us, and our team is local, named, and based right here on the Gold Coast.

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Frequently Asked Questions

Do I need two loans for a house and land package?
Technically yes, a land loan and a construction loan. Most lenders bundle them into a single facility, so you’re only managing one account and one point of contact throughout.
Do I pay stamp duty on the whole package?
Generally no. Because the land and build are separate contracts, duty is usually calculated on the land value only, not the total package price. Confirm current thresholds with our team or the Queensland Revenue Office.
How much deposit do I need?
Most lenders will fund a home and land loan up to 90–95% of the property value with LMI, though your funds to complete also need to cover anything sitting outside the fixed-price building contract, like site costs or landscaping.
Can I use the First Home Owner Grant or the 5% Deposit Scheme?

Possibly, both can apply to new builds, including house and land packages, subject to eligibility. Our first home buyers page has the current details on caps and criteria.

What happens if the land isn’t registered yet?
You can’t settle until the title registers, which can take longer than expected in a new estate. We build this timing into your pre-approval and loan structure so it doesn’t catch you off guard.
What’s a split contract, and can I get finance for one?
It’s a package where the land has no standalone value, usually seen in some strata-style developments. Some lenders won’t finance it at all, so it’s worth having a broker check the contract structure before you sign.
Should I use a broker or my bank?
A broker compares your house and land loans across multiple lenders’ construction policies rather than just one bank’s, which usually means a better fit for your builder, your timeline, and your deposit position.

Start Your Home Loan Journey Today

Let’s get your home loan journey underway. Chat with our team and we’ll help you understand your options and map out your next steps.
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