House and Land Package Finance

House and land package finance is structured in two parts. First, a standard land loan settles the purchase of the land. Once the land is registered in your name and the building contract is signed, the construction component activates and funds are drawn in progress payments as each build stage is completed: typically slab, frame, lockup, fit-out, and practical completion. Interest during construction is charged only on drawn funds.

Not necessarily. Many lenders offer a single facility that covers both the land purchase and the construction phase. The loan operates as a land loan initially, then transitions to a construction loan when the build begins. Some lenders offer this as one product with different drawdown mechanisms for each phase. SFG identifies the most efficient structure for your package and lender.

Yes. New estate purchases are a standard use case for house and land package finance. Lenders assess the land value, the registered builder's contract, and the end value of the completed home. Some lenders restrict which builders they will accept, so SFG checks whether your preferred builder is on each lender's approved panel before submitting your application.

Most lenders require a minimum 10% deposit based on the combined land and construction value. With lenders mortgage insurance, some lenders will accept 5%. The deposit requirement is calculated on the total end value of the completed property, not just the land purchase price. SFG compares lender deposit requirements across the panel and identifies the most accessible options for your equity position.

Yes. Investors purchasing house and land packages, whether in new estates or through custom land and builder combinations, access construction finance through the same lender panel as owner-occupiers. Investment house and land packages may have different LVR limits and interest rate tiers. SFG identifies investor-friendly lenders for your package and location.

Not all lenders publish approved builder lists, and those that do have different standards. If your preferred builder is not approved by one lender, SFG will identify other lenders on our 90+ panel where the builder qualifies. In some cases, SFG can facilitate the builder's registration with lenders who require formal approval. Joseph Farhat will advise on options for your specific builder and package.

Land settlement is typically coordinated with the developer's standard registration timeline, commonly 14 to 42 days from unconditional exchange. Construction finance approval needs to be in place before the land title registers. SFG begins the finance application early in the process to ensure approval is ready for land settlement, avoiding delays that could trigger penalty interest or rescission under the land contract.

Yes, some lenders accept low deposits for house and land packages, including first home buyer packages that may be eligible for government grants and stamp duty concessions. Lenders mortgage insurance may apply for deposits below 20%. SFG identifies which lenders have the most accessible deposit requirements for your package and whether any government schemes apply to your purchase.