Construction Loans › How does a house and land package loan work?

How does a house and land package loan work?

A house and land package is usually financed as two connected parts: a loan to buy the land first, then a construction loan to fund building the home. The land settles, then drawdowns fund the build stage by stage.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

Splitting the finance into land then build is what makes a house and land package work. You settle the land, then the construction loan releases funds as the home goes up. Stamp duty generally applies to the land value, not the build, which can make these packages cost effective for first home buyers.

The key points

Financed as a land purchase then a construction loan.
The land settles first, then build drawdowns begin.
Stamp duty generally applies to the land, not the build.
Often cost effective for first home buyers.

Free, no obligation

Finance your build the right way

Answer a few quick questions and we can structure a construction loan around your contract and timeline across a panel of more than 70 lenders.

Check Your Options

A few quick questions, no obligation.

What is your goal?

Buy a home or investment property First home, next home, or adding to your portfolio Build a house or develop land New build, renovation, duplex, or subdivision project Lower my current repayments Better rate, release equity, or restructure existing debt Finance an established commercial property Business premises or commercial investment asset

Tell us a bit more about the plan

How do you earn your income?

Standard salary or wage Full-time, part-time, or casual employment (PAYG) Self-employed or business owner Sole trader, company director, or contractor

How is your credit score?

This helps us match you to the right lender from the start.

Healthy No issues that I am aware of A few small marks A couple of late payments, now caught up Not sure, or it is complicated We work with specialist lenders for these situations

Last step. Where should we send your options?

Your information is private and we will never share it.

First Name

Last Name

Email Address

Australian Mobile Number

By submitting, you agree to be contacted by one of our team of licensed mortgage brokers. No obligation. No spam.

You're all set.

We've received your details. One of our friendly brokers will reach out within 1 business day to help guide you through your options.

More construction loans questions

Back to the full Construction Loans guide

Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.