First Home Buyer House and Land Packages: Finance Guide

First home buyer house and land packages need finance that matches when the buyer acquires the land and when the builder must be paid. Start with the contracts, then put every payment and approval deadline on one timeline. A package price alone doesn’t show how much cash the buyer needs before the construction loan starts paying invoices.

For a first-home buyer building a house, the broker coordinates funding with the buyer’s conveyancer and builder. The steps below start at package selection. The broader first-home loan guide covers the earlier mortgage journey.

Classify the Package and Contracts

Classify the package by its legal commitments and payment terms before selecting a house and land package loan. The word “turnkey” describes the promised finished property or inclusions. It doesn’t establish the finance structure.

Contract structure	Commitment and timing	Funding consequence
Single contract for a completed home	Buyer contracts with the vendor for the finished property. Deposit and completion settlement follow the sale contract.	The purchase loan generally funds completion settlement. Identify any earlier payment obligation separately.
Separate land and build contracts	Buyer settles land with its vendor, then pays the builder under a construction schedule.	Land funding and staged construction funding must cover different payment dates.
Package with linked contracts or different suppliers	Developer, land vendor and builder can have separate obligations, even when marketed together.	Establish what happens to each commitment if the other contract or finance falls through.
Land purchased before a builder is appointed	Buyer commits to land before the final build price and evidence exist.	Land approval doesn’t establish approval for the later construction funding.

Have the conveyancer identify the parties, land title status, finance clauses, deposit refund terms and settlement triggers. Record the builder’s start and completion obligations separately. A finance clause in the land contract cannot be assumed to protect the build contract.

For each contract, record the last date to satisfy finance and the action required to request more time. The conveyancer handles extensions and notices. A lender approval or an expected grant cannot change those legal deadlines.

The distinction also controls valuation. A completed-home purchase assesses the finished security, while staged finance needs enough value and funding at land settlement and through construction. Use the off-the-plan and house-and-land finance comparison when choosing between purchase structures.

Map Deposits and Funds to Complete

Map each deposit to its recipient and due date, then reconcile it against the total buyer contribution. A holding deposit counts towards a later payment only where the written terms credit it. Keep a separate line for refundable amounts and the conditions for repayment.

Distinguish the contract deposit from the lender’s required contribution. Money already paid to the vendor or builder can form part of that contribution when the lender accepts the evidence.

Counting it again as an additional cash requirement overstates the buyer’s remaining funds.

The following fictional timeline assumes separate contracts, a $300,000 land purchase and a $400,000 fixed-price build. All figures are Australian dollars. Assume $630,000 approved funding, split into $270,000 for land and $360,000 for construction, subject to the lender accepting that allocation.

The buyer has $100,000 savings. They contribute $70,000 towards the $700,000 package and reserve another $10,000 for costs outside the contracts.

The remaining $20,000 is their contingency. This example uses neither a grant nor a government guarantee.

Fictional date	Payment or funding event	Buyer cash movement	Savings remaining
5 October 2026	Holding payment, credited against land deposit	$1,000 paid	$99,000
12 October 2026	Complete the assumed $30,000 land deposit	$29,000 paid	$70,000
2 November 2026	Assumed build deposit	$20,000 paid	$50,000
30 November 2026	Land settles with $270,000 lender funds and the deposit already paid	$0 additional purchase contribution	$50,000
Before first lender-funded build claim	Remaining buyer build contribution	$20,000 paid against construction costs	$30,000
Across settlement and building	Assumed legal, lending and other outside-contract costs	$10,000 paid	$20,000
Later construction stages	Remaining contract funding	$360,000 lender funds paid progressively	$20,000

The build funding reconciles to $400,000: $20,000 deposit, $20,000 further buyer funds and $360,000 lender funding.

The total package reconciles to $630,000 lending plus $70,000 buyer funds. The dates and payment amounts are assumptions, not deposit limits or a loan offer.

Duty, grants, concessions and scheme treatment differ by jurisdiction and contract. Replace the $10,000 allowance with the conveyancer’s duty assessment and actual quotes.

Include valuation and draw fees, inspections, insurance, site works, utility connections and exclusions from the builder’s price.

Also budget rent alongside interest on drawn funds. Keep these ongoing costs separate from the purchase contribution. A delayed build can consume the $20,000 contingency even when the construction contract price stays fixed.

Coordinate Valuation and Approval

Coordinate the valuation instructions with the exact land, plans and build scope being financed. A land valuation supports the security at land settlement. An as-if-complete valuation estimates the finished property’s value using the proposed construction.

Progress inspections or valuations support staged releases under the selected lender’s conditions.

Collect the signed contracts, approved plans, specifications and inclusion schedule. Add the progress-payment schedule, site-cost details and every variation. Record the builder’s licence, registration and relevant insurance evidence for the lender’s assessment.

Match the lot and address across the documents.

CommBank’s construction timeline, as at October 2026 (checked on 3 October 2026), places an as-if-complete valuation in the formal application. It says building starts after its commencement letter.

These are CommBank’s steps, not an approval commitment from another lender. CommBank’s construction timeline shows that sequence.

Put the finance-clause date beside approval expiry, expected land registration, settlement and build commencement.

For untitled land, show what happens if registration moves beyond approval validity. Obtain a fresh assessment or written extension where needed before the buyer relies on funding.

If the valuation falls below cost, recalculate the loan-to-value ratio (LVR), which compares the loan with the lender’s accepted property value. For illustration, $630,000 divided by a $680,000 accepted value is about 92.65%, rather than 90% of the $700,000 cost.

The lender’s permitted LVR and assessment decide whether more cash or a different loan amount is required.

The file can progress when the accepted valuation supports the requested funding and the approval conditions fit the contractual dates. An application in progress doesn’t establish that result.

Verify First-Home Assistance

Assess each assistance programme separately against the buyer and the actual contracts. A grant is a payment, a duty concession reduces tax and a guarantee supports the lender. They affect the cash timeline in different ways.

Record intended occupancy, each applicant’s identity and residency, spouse or partner history, prior ownership and previous assistance.

Check property type, land and build values, variations, contract date and application deadline against the relevant authority. Keep an eligibility decision and payment date for each benefit. The first-home owner grant guide covers the wider jurisdiction rules.

New South Wales Example

Revenue NSW’s rules, as at October 2026 (checked on 3 October 2026), provide a $10,000 First Home Owner (New Homes) Grant. Separate land and comprehensive building costs, including variations, must total no more than $750,000.

A newly built home purchase has a $600,000 cap.

Applicants must be individuals aged at least 18, with at least one Australian citizen or permanent resident. Previous grants and the applicant’s or spouse’s Australian ownership and occupation history affect eligibility.

For contracts from 1 July 2023, occupancy must start within 12 months of purchase or construction and continue for 12 months.

For money needed at settlement or first drawdown, apply through the approved finance agent. A direct Revenue NSW application follows completion.

Keep pre-payment costs funded until the agent confirms the release arrangement. Revenue NSW’s grant rules explain these conditions.

Separately, Revenue NSW’s duty assistance rules, as at October 2026 (checked on 3 October 2026), exempt eligible vacant land up to $350,000.

Land above $350,000 and below $450,000 attracts a concession. Eligible new or existing home purchases are exempt up to $800,000, with concessions above that and below $1,000,000.

Duty eligibility tests previous ownership and prior concessions, including spouse or partner history.

At least one first-home buyer must be a citizen or permanent resident. The conveyancer lodges the forms after exchange and assesses the applicable transaction and residence rules. Revenue NSW’s duty assistance page supplies the thresholds.

For the fictional separate-contract example, $300,000 land and $700,000 combined cost sit within the respective land-duty and build-grant value limits.

Those figures alone don’t establish personal eligibility. Keep the grant out of the initial cash calculation until its approved payment timing is known.

Australian Government Guarantee

The Australian Government 5% Deposit Scheme, as at October 2026 (checked on 3 October 2026), supports eligible first-home buyers with at least 5% deposit without lenders mortgage insurance (LMI). LMI protects the lender.

The guarantee pays no grant to the buyer and leaves purchase costs and repayments with them. Apply through a participating lender. The government scheme page explains the guarantee.

Its information guide requires adult citizens or permanent residents buying to occupy, with qualifying ownership history and savings.

Apply the location cap to both purchase price and assessed value. For separate builds, combined land and build cost must also fit.

The guide distinguishes same-party packages from different-party land and build contracts. A package needs both contracts before settlement.

Different-party builds require an eligible build contract within six months of loan settlement. Land already owned before securing a scheme place is excluded.

New builds must start within 12 months and finish within 36 months of loan settlement. Move in within six months of the occupancy certificate.

The contract requires a licensed, registered builder, fixed price and building insurance. Owner-builder contracts don’t qualify. The scheme information guide sets these requirements.

Lender deadlines can be shorter.

Manage Progress Payments and Changes

Manage each claim against completed work and the lender’s remaining funds, with variations recorded before the buyer commits to extra costs. The builder issues the stage invoice. The borrower authorises the claim, and the lender applies its evidence and inspection requirements before releasing funds.

CommBank’s construction guidance, as at October 2026 (checked on 3 October 2026), requires the buyer’s construction contribution to be used before loan progress payments.

Its timeline also instructs borrowers to provide variations promptly. Retain receipts for buyer-funded work so the remaining contribution can be reconciled.

CommBank’s product page, as at October 2026 (checked on 3 October 2026), requires commencement within 12 months of the loan contract’s disclosure date. Completion must occur within 24 months of the first progress payment.

It conducts a final inspection and charges a progressive drawing fee for each request. CommBank’s construction-loan page details these lender-specific conditions.

Keep bank inspections separate from a buyer’s building-quality assessment. Refer disputed workmanship, defects or stage completion to a qualified building adviser. A broker cannot resolve those matters by forwarding an invoice.

Update funds to complete after every variation. If the fictional build gains an unfunded $15,000 variation, its $20,000 contingency falls to $5,000 before further delay costs.

An increased contract price doesn’t automatically increase the approved loan. It can also cross an assistance cap.

When settlement or construction is delayed, update the cash forecast and approval dates together.

Escalate a shortfall before the next invoice falls due. Obtain the lender’s decision on changed funding and the conveyancer’s advice on contractual remedies. Use the construction-loan requirements guide for the full evidence and drawdown process.

Prepare the Broker Checklist

Prepare the file in commitment order, with a named person responsible for each unresolved item. The checklist must show funding available on the payment date, not only an eventual total.

1. Before reservation, identify the land vendor, builder and contract structure. Give the buyer written holding-payment terms and refer contract protections to the conveyancer.
2. Before exchange or an unconditional commitment, record finance-clause deadlines and land title status. Obtain the buyer’s full contribution evidence and the build’s inclusions and exclusions.
3. Before formal approval, submit the contracts and valuation pack. Collect builder credentials, the progress schedule and required insurance. Reconcile the lender’s contribution with buyer funds already paid.
4. Before land settlement, obtain the conveyancer’s funds-to-complete statement. Confirm approved loan documents, settlement contacts, duty treatment and any assistance release needed that day.
5. Before build commencement, satisfy the lender’s start conditions. Confirm approvals and insurance remain current, and identify the person authorised to request each progress payment.
6. Before each claim, reconcile the invoice with the stage, borrower authority and required inspection. Update remaining loan funds, buyer contribution and variations.
7. Before final payment and occupation, obtain the lender’s required completion evidence. Coordinate building advice on defects, required occupation documents and the buyer’s move-in obligations for assistance.

Legal advice governs contract enforceability, notices and refund rights. Conveyancing advice governs settlement and duty assessment.

Building advice covers scope, defects and compliance. Refer ownership, entity or tax questions to the appropriate tax adviser.

Before the next commitment, verify that every due payment has an identified funding source, each approval remains valid and required evidence has an owner. If any item fails, resolve it with the responsible lender or adviser before treating that milestone as funded.