In short: House and land package finance covers two contracts, one for the block and one for the build, under one construction loan that settles the land first, then pays the builder in stages. In Victoria you pay stamp duty on the land only, eligible first home buyers get the $10,000 First Home Owner Grant, and the First Home Guarantee allows a 5% deposit with no LMI up to $950,000 in Melbourne.
Estates in Mickleham, Kalkallo, Donnybrook, Wollert and Craigieburn release titled and untitled lots every month, and builders bundle them with a house design and a single headline price. The finance behind that price is more involved than an established-home loan, because the lender is funding vacant land today and a house that does not yet exist. GNT Finance is based in Mickleham, a few minutes from most of these estates, and structures house and land finance for first home buyers, upgraders and investors every week.
Two contracts, one loan
A "package" is a marketing bundle, not a legal one. You sign:
- A contract of sale for the land with the developer or land vendor. This is a standard Victorian contract with a Section 32 vendor statement, cooling-off rights for private sales, and settlement on title registration if the lot is untitled. See our explainer on the contract of sale in Victoria.
- A domestic building contract with the builder, fixed-price, with plans, specifications and a staged payment schedule.
Because the contracts are separate, land transfer duty is assessed on the land price alone. On a $330,000 lot rather than a $700,000 finished home, that saves a non-first-home-buyer around $22,000, and puts most first home buyers under the $600,000 full-exemption threshold.
Who buys this way
- First home buyers who want a new four-bedroom home for less than an established house in Epping or Greenvale costs.
- Nepali and South Asian families moving from rentals in Craigieburn or Roxburgh Park into the newer estates further north; we work with many of them in English, Nepali and Hindi.
- Upgraders using equity from an existing home to fund the deposit on a larger block.
- Investors targeting depreciation on a new dwelling and rental demand near new train stations and schools.
For a balanced view of new versus established, read house and land vs established homes.
Grants and schemes that apply to a new build
| Scheme | What it gives you | Key limits (Victoria, at the time of writing) |
|---|---|---|
| First Home Owner Grant | $10,000 cash towards a new home | Home valued up to $750,000; live in it 12 months starting within 12 months of completion |
| First home buyer duty exemption | No stamp duty on the land | Land price up to $600,000; sliding concession to $750,000 |
| First Home Guarantee | 5% deposit, no LMI, government guarantees the rest | Land plus build up to $950,000 in Melbourne; owner-occupier; citizen or permanent resident; no income cap |
| Help to Buy | Government equity of up to 40% of a new home; 2% deposit | Income caps $100,000 single / $160,000 couple; $950,000 price cap |
The grant and guarantee can be combined. Try the First Home Guarantee eligibility calculator and read the FHOG guide for the fine print.
What the process looks like with GNT Finance
Step 1: borrowing capacity on the full package. We assess land plus build plus extras, not just the land. This tells you which estates and which builders are realistic before you visit a display village.
Step 2: land contract. Once you pick a lot we review the price, title status and sunset date, and lodge for land approval.
Step 3: building contract. With a fixed-price contract, council-approved plans and the builder's insurance certificate in hand, we submit the construction side. The lender values the finished home on an as-if-complete basis.
Step 4: land settlement. The lender funds the land. Your deposit is applied here. Interest-only repayments start on the land portion.
Step 5: build and progress payments. Base, frame, lock-up, fixing and completion are paid to the builder as each stage is inspected. Our page on construction loans covers the mechanics.
Step 6: keys and conversion. At completion the loan switches to principal and interest.
Titled or untitled: why it matters for your loan
Titled lots can settle within 30 to 90 days. Untitled lots are sold before civil works finish, often at a lower price, with settlement 6 to 18 months away when the title registers. Lender approvals typically last 90 days, so an untitled purchase needs reassessment closer to settlement on the rates, income and policy of that day. The sunset clause sets the deadline for the developer to deliver title; if it passes, either party may be able to rescind. Tell us the expected title date so we can time the application.
Worked example: a first home in Kalkallo
Sujan and Anjali, both permanent residents renting in Craigieburn, choose a package in Kalkallo: a $330,000 titled lot and a $370,000 fixed-price four-bedroom build, $700,000 in total. They have $50,000 saved.
Deposit. Under the First Home Guarantee they need 5%, or $35,000, and pay no lenders mortgage insurance, which on a 95% loan would otherwise run into the tens of thousands.
Stamp duty. Assessed on the $330,000 land only, and as first home buyers under $600,000 they pay nothing. Confirm your own figures with the stamp duty calculator.
FHOG. The home is new and under $750,000, so the $10,000 grant is paid by the lender at the base stage and reduces what they draw.
Loan. $665,000, which is 95% of the $700,000 as-if-complete valuation. Their remaining $15,000 covers conveyancing, lender fees, and a buffer for site costs.
For illustration, at 6.00% p.a. the repayments look like this:
| Stage | Loan drawn | Monthly repayment |
|---|---|---|
| Land settlement (interest-only) | $295,000 | $1,475 |
| After lock-up (interest-only) | $535,000 | $2,675 |
| Completion (P&I, 30 years) | $665,000 | $3,987 |
They keep renting at $2,200 a month during a ten-month build, so their tightest month is around $4,875 in rent plus interest just before completion, which we built into the servicing check. Explore your own scenario in the mortgage repayment calculator.
Documents lenders want for a package
Beyond identification, income evidence and bank statements, expect to provide:
- The signed land contract and Section 32, including the plan of subdivision and expected title date.
- The fixed-price building contract, plans, specifications and colour selections.
- Quotes for anything outside the contract you want funded, such as fencing, landscaping or solar.
- First Home Guarantee and FHOG declarations if applicable, plus proof of citizenship or permanent residency.
- Evidence of genuine savings, typically 5% held for three months.
Costs to budget for beyond the package price
| Item | Typical range |
|---|---|
| Site costs, if not fixed in the contract | $10,000 – $35,000 |
| Landscaping, fencing, driveway, letterbox | $15,000 – $35,000 |
| Conveyancing (two contracts) | $1,500 – $2,500 |
| Lender valuation and progress inspections | $500 – $1,500 |
| Rent during the build | 9 – 15 months |
| Developer covenants (fencing or facade requirements) | Varies by estate |
Our home-loan service is at no cost to you in most cases; the lender pays us a commission, which we disclose.
Traps in the fine print
A "turnkey" that is not. Compare inclusion lists line by line, not headline prices.
Assuming the grant counts as deposit. The FHOG is paid at base stage, after land settlement, so you still need your own deposit for the land.
Why use a mortgage broker for a house and land package
Builders and developers often have a preferred lender or in-house finance referrer. That is convenient, but it means one lender's policy on untitled land, progress payments and guarantee eligibility. Policies differ: some lenders will not lend on untitled land at all, some cap the build at 90% without the guarantee, some are slow to release progress payments. GNT Finance compares the panel, checks that your package fits the First Home Guarantee and FHOG rules before you sign, and times the application around the title date. Gorakh Timilsina's years as a senior credit officer mean the two-contract file is prepared the way an assessor expects.
We serve buyers across Mickleham, Kalkallo, Donnybrook, Wollert and Craigieburn, and by phone and video anywhere in Victoria.
Frequently asked questions
Is stamp duty really only charged on the land?
Yes, where the land and building contracts are separate and construction has not started at the date of the land contract. For eligible first home buyers, land up to $600,000 is fully exempt and a concession runs to $750,000. Buying a completed spec home is different: duty applies to the full price.
Can I use the First Home Guarantee for a house and land package?
Yes, provided the combined land and build price is within the $950,000 cap for Melbourne, you are an Australian citizen or permanent resident aged 18 or over, you will live in the home, and you have not owned property in Australia in the past ten years. There are no income caps.
When is the First Home Owner Grant paid on a build?
For a house and land package the $10,000 grant is usually paid through the lender at the first progress payment, most often the base stage, once the builder has started. It is not available at land settlement, so your own deposit must cover that step. You must move in within 12 months of completion and stay for 12 continuous months.
What if the land is untitled and titles are delayed?
Your finance approval generally lasts 90 days, so a long delay means reassessment on current income, rates and policy, and the builder's fixed price may also expire. We track the expected title date, refresh the approval in time, and check the sunset clause so you know your rights if the developer cannot deliver.
Can investors finance a house and land package?
Yes. Investors do not receive the FHOG, the guarantee or the first home buyer duty exemption, but they still pay duty on the land only and benefit from depreciation on a new dwelling. Lenders discount the rental income and usually require a 10% to 20% deposit. See investment property loans.
Talk to GNT Finance
Bring us the package flyer or the lot number and we will tell you within a day what the finance looks like, which grants you qualify for and what the true all-in cost is. Book a free consultation or call Gorakh on 0426 403 703.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.