---
title: House and Land Finance: Kalkallo & Donnybrook | GNT Finance
description: Financing a house-and-land package in Kalkallo or Donnybrook: land settlement, build stages, the $10,000 FHOG, First Home Guarantee and a $720,000 example.
url: https://gntfinance.com.au/blog/house-and-land-in-kalkallo-and-donnybrook-finance-guide/
author: Gorakh Timilsina
published: 2026-09-05
category: Melbourne north
---

# House and land in Kalkallo and Donnybrook: the finance guide

**In short:** Financing a house-and-land package in Kalkallo or Donnybrook means two contracts and one construction loan: the land settles first, then the build is funded in stages as the builder invoices. First home buyers pay stamp duty on the land only, can claim the $10,000 First Home Owner Grant on a new home up to $750,000, and can use the First Home Guarantee with a 5% deposit under the $950,000 Melbourne cap.

Kalkallo and Donnybrook are where a large share of Melbourne's new homes are being built, and where a large share of our clients are buying. The finance is more involved than an established purchase because the money goes out in pieces over many months, and the timing of land titles, builder invoices and grants all has to line up. This guide walks through it with a worked example, so you know what happens and when.

## Key takeaways

- A house-and-land package is usually two contracts: a land contract with the developer and a building contract with the builder.
- Stamp duty is charged on the land price only, and eligible first home buyers pay nothing on land up to $600,000.
- The construction loan is drawn in stages, and you pay interest only on what has been drawn.
- The $10,000 FHOG applies to new homes up to $750,000 and is usually paid at the first construction progress payment.
- The First Home Guarantee price cap for Melbourne is $950,000, comfortably above most packages in the corridor.

## Two contracts, one loan

A "package" is a marketing term. Legally you almost always sign a contract of sale for the land with the developer and a separate domestic building contract with the builder. The [contract of sale](/legal/contract-of-sale-victoria/) for land in a new estate often has a long settlement because the title has not yet been registered; "titled" land settles within weeks, "untitled" land can take a year or more and usually carries a sunset clause.

The lender assesses the whole project: land price plus build price plus any site costs and upgrades. A single [construction loan](/services/construction-loans/) then funds the land settlement first and the build progressively. If you are buying land now and building later, the same principle applies but with a separate land loan first.

## Worked example: a $720,000 package in Donnybrook

Assume a first home buyer couple, both citizens, buying a $340,000 block in [Donnybrook](/mortgage-broker/donnybrook/) with a $380,000 fixed-price build. Total $720,000.

| Item | Amount |
|---|---|
| Land price | $340,000 |
| Building contract (fixed price) | $380,000 |
| Total project value | $720,000 |
| Deposit under First Home Guarantee (5%) | $36,000 |
| Loan amount | $684,000 |
| Stamp duty (first home buyer, land only, under $600,000) | $0 |
| First Home Owner Grant (new home under $750,000) | $10,000 |
| LMI | Nil under the Guarantee |

Compare that with an established $720,000 house in [Craigieburn](/mortgage-broker/craigieburn/): the same buyers would pay about $30,616 in first home buyer duty (80% of the $38,270 general duty, because $720,000 is four-fifths of the way through the $600,001 to $750,000 taper) and would not receive the grant. Duty on land only is one of the quiet advantages of building. Check both scenarios in the [stamp duty calculator](/calculators/stamp-duty/).

If they were not eligible first home buyers, duty on the land would be $13,370 with the owner-occupier concession or $15,470 at the general rate, still far less than duty on a finished home.

## How the money flows

### Stage 1: land settlement

The land settles like any purchase. The lender advances the land portion of the loan, less your deposit, and you start paying interest on that amount. For illustration, at 6.00% p.a., interest-only on $304,000 (the land less the $36,000 deposit) is about $1,520 a month.

### Stage 2: construction progress payments

Victorian domestic building contracts set the maximum progress payment schedule by law. For a standard build it is:

| Stage | Percentage of contract | On a $380,000 build |
|---|---|---|
| Deposit | 5% | $19,000 |
| Base | 10% | $38,000 |
| Frame | 15% | $57,000 |
| Lock-up | 35% | $133,000 |
| Fixing | 25% | $95,000 |
| Completion | 10% | $38,000 |

At each stage the builder invoices, the lender (often after an inspection) pays the builder directly, and your interest-only repayment rises with the drawn balance. By lock-up the loan is around $551,000 drawn and the interest-only repayment about $2,755 a month. The full mechanics are in [construction loan progress payments](/guides/construction-loan-progress-payments/), and Consumer Affairs Victoria's [building contract rules](https://www.consumer.vic.gov.au/housing/building-and-renovating) set out the legal limits.

### Stage 3: completion

After the final payment the loan converts to principal and interest on the full $684,000. At 6.00% over 30 years that is about $4,101 a month. Budget for the rent you are paying during construction plus the growing interest bill; the overlap is the hardest part of the cashflow.

## Grants and schemes on a house-and-land package

### First Home Owner Grant

The $10,000 [FHOG](/guides/first-home-owner-grant-victoria/) applies because the home is new and the total value (land plus build) is under $750,000. For a build contract, the State Revenue Office usually pays the grant when the first progress payment falls due, so it reduces the amount you need to fund at that stage rather than at land settlement. You must live in the home for 12 continuous months starting within 12 months of completion. Full conditions are on the [SRO website](https://www.sro.vic.gov.au/first-home-owner).

### First Home Guarantee

The [Guarantee](/guides/first-home-guarantee-5-percent-deposit/) covers house-and-land packages as long as the total price is under the cap, which is $950,000 for Melbourne, and there is no income cap and no limit on places. Lenders will want the building contract signed and, usually, construction to start within a set period. A 5% deposit on $720,000 is $36,000, and lenders may still apply their own genuine savings rules.

### Help to Buy

The federal shared-equity scheme contributes up to 40% of a new home's price, with a 2% deposit, subject to income caps of $100,000 single or $160,000 couple and a Victorian price cap of $950,000 at the time of writing. Where a couple's income fits, it can dramatically cut the loan. See [Help to Buy explained](/guides/help-to-buy-shared-equity-scheme/).

## What to check before you sign

1. Is the land titled? If not, what is the expected title date and the sunset clause?
2. Is the build price fixed, and what does it exclude (site costs, landscaping, driveways, fencing)?
3. Does the builder hold domestic building insurance for your contract?
4. Will your pre-approval still be valid when the land settles, and what happens if it lapses?
5. What are your rent and interest costs, month by month, over the build?

The [house and land vs established](/guides/house-and-land-vs-established/) guide compares the two paths honestly, and our [house-and-land packages](/services/house-and-land-packages/) service page explains how we coordinate developer, builder and lender so the settlements land on time.

## Frequently asked questions

### Do I pay stamp duty on the house or just the land?

If the land and build are separate contracts and construction has not started at land settlement, duty is charged on the land only. Eligible first home buyers pay nothing on land up to $600,000. If you buy a completed new home from a builder, duty applies to the full price. The [SRO](https://www.sro.vic.gov.au/) has the detail on which contracts qualify.

### Can I use the First Home Guarantee for house and land in Kalkallo?

Yes, provided the total of land and build is under the $950,000 Melbourne cap, you are a citizen or permanent resident, you will live in the home and you have not owned property in Australia in the last 10 years. [Kalkallo](/mortgage-broker/kalkallo/) packages typically sit well inside the cap.

### What if the build runs over budget?

Variations to the contract are your cost unless the lender agrees to increase the loan, which requires a fresh assessment. A genuine fixed-price contract limits this risk, but exclusions and provisional sums are where budgets blow out. Hold a contingency of at least a few per cent of the build price outside the loan.

### How long does a construction loan take to approve?

Slightly longer than a standard loan because the lender reviews the building contract, plans and builder details and orders an "as if complete" valuation. Allow two to three weeks from a complete application. Delays usually come from missing builder documents, not the lender.

## Talk to GNT Finance

Our office is in Mickleham, ten minutes from the Kalkallo and Donnybrook estates, and construction finance is a large part of what we do. If you are looking at a package, [book a free consultation](/contact/) or call Gorakh Timilsina on 0426 403 703 and we will map the cashflow from land settlement to keys.

*This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.*