A house and land package is financed as a land purchase and a construction contract, usually with one lender and two settlements. The valuation is done on the plans before a brick is laid, progress payments go to the builder in stages, and the timing between land settlement and build completion is where the risk sits.
The package price in the brochure is two contracts. The land is bought from the developer and settles first, often within weeks of registration.
The house is a fixed-price building contract with a builder, drawn down in stages as the work is done.
A lender values the finished home from the plans and the contract, then lends against that figure, so the valuation on paper has to stack up before anything is built. Most of the questions Charles answers on packages are about timing: when the land settles, when the build starts, what you pay in between, and what happens if the build runs long.
Part of the construction loans guide.
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A huge thank you to Charlie for his exceptional support and expertise throughout the process of securing finance for my first home.
As a first home buyer, I was pretty overwhelmed at the start, but Charles made everything much easier. He explained the process step by step and helped me understand my borrowing options. His professionalism and responsiveness were excellent.
Charles Touma from Links Property Finance was a great help with buying my first home. I had plenty of questions and he took the time to explain things clearly without making me feel rushed. He kept me updated throughout and made the process much less stressful. Really appreciated his patience and would happily recommend him to other first home buyers.
Charles Touma, Mortgage Broker.
What to budget for between signing and moving in.
| Land deposit | At land contract. Often 5 to 10 per cent of the land price. |
|---|---|
| Builder deposit | At building contract. Commonly 5 per cent, paid before the slab. |
| Land settlement | When the lot registers. Can be months after contract; interest starts here. |
| Progress payments | Over the build. Drawn by the lender in stages after inspection. |
Timing depends on the estate and the builder. Fixed-price contracts limit, but do not remove, cost changes. Builders also sell display homes with a lease back to them; see display home leaseback.
New builds attract the most generous help. The grant guide and the schemes guide set out the conditions.
In NSW the First Home Owner Grant of $10,000 applies to a newly built home within its price caps, transfer duty for a first home buyer is charged on the land value alone when the house contract is separate, and the 5% Deposit Scheme covers house and land packages within the Sydney price cap.
The catch is timing. Scheme places and pre-approvals have expiry dates, and a build that runs twelve months can outlast both. Charles times the application so the approvals cover the build, and keeps the lender informed when the builder runs late.
Each one is manageable if it is known at the start.
As a land loan that settles first and a construction loan drawn in stages as the house is built, usually with one lender. The finished home is valued from the plans and contract before approval.
Usually on the land only. When the land and building contracts are separate, NSW transfer duty is charged on the land; a completed new home bought under one contract pays duty on the full price. First home buyer exemptions and concessions still apply within their thresholds.
Yes, for an eligible first home buyer, provided the combined land and build price is within the Sydney cap of $1.5 million and the build meets the scheme’s timing rules.
Interest starts when the land settles. During the build you pay interest on the land and on each progress payment as it is drawn. Full principal-and-interest repayments begin at completion.
The lender lends against the valuation, so the difference comes from your deposit. It is why the valuation is done before the building contract is unconditional, and why some packages are renegotiated at that point.
Commonly eight to fourteen months after land settlement, and land registration can add months before that. Pre-approvals and scheme places need to be timed to cover the whole period.
The construction loans guide covers progress payments in detail, the vacant land guide covers buying the block first, and the document checklist lists what the lender needs.
Send Charles the land contract and the building contract. He checks the valuation on the plans, the builder’s terms and the timing, and sets the loan up so the progress payments run without delay. Free, no credit check.
Prefer a callback?Charles calls back within one business day. No documents needed yet.
General information only, not credit or financial advice. Lender policies on property types change and differ between lenders, and the examples are illustrations rather than quotes. Links Property Finance holds an Australian Credit Licence authorisation and can confirm how a specific property would be assessed.
Official sources for the figures on this page: Revenue NSW, transfer duty · Housing Australia, 5% Deposit Scheme · Revenue NSW, First Home Owner (New Homes) Grant. Scheme rules change; the official pages are the final word. Checked against these sources on 12 October 2026.
