When to Buy a House and Land Package in Brisbane

A house and land package splits your purchase into two stages, and your finance needs to be ready before you sign for either one.

For first home buyers in Brisbane, the main decision is when to lock in finance and the schemes you plan to use. Getting the order wrong can cost you a concession or a government approval.

When Should You Get Pre-Approval for a House and Land Package?

Get pre-approval before you put a deposit on land or sign any contract. It shows you what a lender is likely to lend, so you can choose a package that fits your budget.

A house and land package often involves a land contract and a separate building contract. Lenders assess both, and they usually release funds in stages as the build progresses. A lender will typically look at your income, savings, living costs and debts. A borrowing capacity assessment before you shop gives you a realistic price range. The trade-off is that pre-approval is not a final approval. It can lapse, and the lender will reassess your circumstances and the property before formal approval.

Which Home Loan Options Suit a Land and Build Purchase?

A construction loan pays the builder in stages as each part of the build is completed. During the build you generally pay interest only on the amount drawn so far.

Our construction loans page explains how progress payments work. Once the home is finished, the loan usually moves to a standard home loan, where you choose between fixed and variable rates and features such as an offset account. Each choice has a trade-off. A fixed rate gives certainty but can limit extra repayments and carry break costs. A variable rate moves with the market. An offset account can reduce interest, but loans with these features may carry higher fees.

The land is usually bought first, so you generally need enough funds to settle it before the build starts. Some lenders offer a loan that covers both stages, which is worth comparing.

How Do Queensland Concessions Apply to House and Land Purchases?

In Queensland, a first home buyer who buys vacant land to build a first home can receive a full transfer duty concession with no price cap. The concession applies only if you build your first home on the land, only one home, and move in and live there within 2 years of settlement. That period cannot be extended, so a delayed build puts the concession at risk. A full concession also applies to a new home. These apply to contracts signed on or after 1 May 2025 and only to residential land.

From 1 August 2026, each buyer claiming these concessions must be an Australian citizen, a permanent resident or a specified foreign retiree. If you buy with someone who is not eligible, the ineligible buyer's share is charged full transfer duty.

Queensland also offers a first home owner grant of $30,000 for eligible new homes valued under $750,000, including the land and any contract variations. This applies to contracts signed on or after 20 November 2023. You must move in within one year of the completed transaction and live there continuously for six months. The Queensland Revenue Office confirms the grant is separate from national schemes. The value test includes the land and the build together, so a package priced near $750,000 needs a careful check of variations before you sign.

Can You Use Help to Buy or the 5% Deposit Scheme on a Package?

Both federal schemes can apply to a house and land package, but you cannot combine them, and each has its own price cap and process. Applications go through a participating lender only.

Under the 5% Deposit Scheme, eligible first home buyers can buy with a 5% deposit, and eligible single parents with a 2% deposit, without paying lenders mortgage insurance (LMI). Where land and a build are under separate contracts, the combined cost must be at or below the cap. In Queensland the cap is $1,000,000 for the capital city and regional centres such as the Gold Coast and Sunshine Coast, and $700,000 for other areas. The cap for your property depends on its suburb and postcode in Housing Australia's postcode search tool.

Help to Buy is a shared equity scheme. The government can contribute between 5% and 40% of the price of a newly built home, and you need a deposit of at least 2% from savings. Income thresholds apply, currently $103,000 for a single applicant and $165,000 for joint applicants or single parents, based on your latest Notice of Assessment. The trade-off is that the government holds an equity share that rises and falls with the home's value, and you may be required to repay it if your income stays above the threshold.

Help to Buy also has build timing rules. Land must settle within 90 days of final approval, construction must begin within 12 months of owning the land, and the build must finish within 36 months. You need a fixed-price contract with a licensed builder. Housing Australia advises not putting a deposit down or bidding before you have conditional approval.

A Worked Example: Sequencing Finance for a Land and Build

Consider a couple in Brisbane who plan to buy a house and land package at a price within the Queensland $750,000 first home owner grant limit. They want to use a 5% deposit, so they approach a broker before visiting display homes.

The broker checks their borrowing capacity and confirms the combined price of land and build sits below the $1,000,000 cap for the 5% Deposit Scheme. They compare participating lenders, then apply for pre-approval. The broker also notes that a build contract with variations could push the total above the grant limit, so they ask the builder to confirm the fixed price in writing before signing.

The couple sign both contracts knowing their finance is aligned. Because the scheme backs the lender for the part of the loan between their deposit and 20%, no LMI applies. They claim the Queensland transfer duty concession on the land through their solicitor and apply for the first home owner grant once the build is complete. The outcome is a finance plan matched to the build timeline instead of one patched together after contracts were signed. The cost is that the scheme requires them to move into the home within six months of the occupancy certificate being issued, and to keep living there while the government backing is in place. The lender may require LMI if they do not.

Using the First Home Super Saver Scheme Before the Land Transfers

You can use the First Home Super Saver scheme to build a deposit, but you must request a determination from the ATO before ownership of the land transfers to you. Once the land transfers, you are no longer eligible.

The scheme counts up to $15,000 of voluntary contributions per financial year and $50,000 in total. You can release 100% of eligible after-tax contributions and 85% of eligible before-tax contributions, plus associated earnings. Released amounts are generally taxable, and the ATO withholds tax when it pays you. After release, you must sign a contract to purchase or build, or recontribute, within the ATO's time limits. Otherwise additional tax applies. Because land is usually bought first, time your request carefully, and speak to your accountant about the tax effects for your situation.

What Happens to Your Repayments During the Build?

During construction you generally pay interest only on the amount drawn, so repayments rise as each stage is paid.

As an illustration at an example rate of 6.75% p.a., a drawn balance of $300,000 would cost about $1,687.50 a month in interest ($300,000 x 6.75% / 12). Once the build is finished and the full amount is drawn, repayments are higher. Your actual rate depends on your lender, deposit and loan structure. If you are renting during the build, plan for rent and interest at the same time. A first home buyer specialist can model this with you before you commit.

If you are ready to compare finance options for a land and build, call one of our team or book an appointment at a time that works for you through our booking page. Alpha Financial can help you line up pre-approval, schemes and lender choice before you sign.

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