Home Loans for House and Land Packages in North Brisbane, QLD, Your Complete Guide
A house and land package is one of the most popular ways to enter the North Brisbane property market with a new build, and the lending behind one works differently from buying an established home. You're not borrowing a lump sum at settlement. Instead, the loan draws down in stages as your builder hits milestones, which means your repayments start small and grow as the build progresses.
For buyers in North Brisbane, the appeal is real. A new build under $750,000 may qualify for the Queensland First Home Owner Grant of $30,000, and first home buyers also avoid transfer duty entirely on new homes regardless of price. Those two advantages together can make a significant difference to your upfront position.
Our team helps buyers across North Brisbane, QLD structure their finance before they sign anything, comparing across 60+ lenders. The construction loan side of it is where most of the lender differences show up, and getting in front of the right one early matters more here than on a standard purchase.
Key takeaways
- Construction loans draw down in stages, so you pay interest only on what's been drawn.
- First home buyers may access the $30,000 FHOG on new homes under $750,000.
- Finance approval must be in place before signing a land contract or build contract.
Do house and land packages in North Brisbane need a different type of loan?
Yes. A house and land package almost always requires a construction loan rather than a standard home loan, because the property doesn't exist as a complete dwelling at settlement. You typically settle on the land component first using a standard loan, then the construction loan draws down progressively as each building stage is completed.
Some lenders offer a single combined facility that covers both stages, while others require two separate products. The distinction matters because it affects your approval timeline, your deposit requirements, and how your repayments are structured across the build period.
How does a construction loan actually work for a house and land package?
A construction loan is approved on an "as if complete" valuation of the finished home, not on the land value or the progress of the build. The lender releases funds in stages tied to builder milestones, and you pay interest only on the amount drawn at each point.
The standard progress payment schedule runs to six stages.
Typical draw-down stages:
- › Deposit: paid to the builder at contract signing, typically 5% of the build cost.
- › Slab or base: 10% to 15% of the build cost, released once foundations are laid.
- › Frame: 20%, released once the frame is erected and inspected.
- › Lock-up: 20%, released once doors, windows and roofing are complete.
- › Fit-out or fixing: 30%, released as internal fit-out is completed.
- › Practical completion: the final 10%, released once the build is signed off.
Because you're only paying interest on drawn funds during the build, your repayments in the early stages are well below what they'll be once the full loan is drawn. After the builder issues the occupation certificate, the loan rolls to a standard principal-and-interest home loan.
Source: industry-standard lender construction loan terms.
We often see buyers sign a land contract or a building contract before they've had their finance properly assessed. A construction loan approval is more involved than a standard one, and the valuation is done on the completed home, not on what exists today. If the as-if-complete figure comes in below the combined land and build cost, the buyer covers the shortfall from their own pocket.
Tom Kelly · Director - Home & Car Loans, Kelly Brothers Finance · Chat to Tom →
What do you need to qualify for a construction loan on a house and land package?
Qualifying for a construction loan requires everything a standard home loan assessment involves, plus a few additional requirements specific to the build itself.
What lenders require for a house and land package construction loan:
- › Fixed-price building contract: a signed contract with a licensed builder, stating the total cost. An open-ended or cost-plus contract will not satisfy most lenders.
- › Council-approved plans: stamped plans from the local authority before a lender will order the valuation.
- › Builder's licence and insurance: a current Queensland building licence and home warranty insurance for the project.
- › As-if-complete valuation: the lender commissions a valuation of the finished home, not the current land. If this comes in below your combined land and build cost, the gap is yours to fund.
- › Standard income and serviceability evidence: payslips, tax returns or business financials depending on your employment type, plus a credit check and expense assessment.
- › Land contract or title: the signed land contract, or if land is already purchased, the title documents.
What does a house and land package cost to finance in North Brisbane, QLD?
The cost depends on the land price, the build contract value, your deposit, and whether you're using any government support. In North Brisbane, house medians across the approved suburb set range from $753,000 in Bowen Hills to well above $2 million in Paddington, meaning the land component alone in most suburbs will sit above the thresholds that trigger first home buyer grants.
The options worth weighing on your deposit strategy:
- › Standard construction loan at 80% LVR: 20% deposit · no LMI · full draw-down flexibility · no price cap
- › 5% Deposit Scheme (First Home Guarantee): 5% deposit · no LMI · no income test · North Brisbane cap $1,000,000 on the completed home
- › Construction loan with LMI: 5% to 10% deposit · LMI premium added to the loan · no price cap · available whether or not you're a first home buyer
LMI on a construction loan is typically calculated on the total completed value at practical completion, not at each draw-down stage, so the premium is assessed upfront. CoreLogic data shows Stafford with a median house price of $1,350,000 and 12-month growth of 16.40%, and Mitchelton at $1,348,000 with 9.59% growth, giving a sense of where established-suburb land sits relative to the $1,000,000 cap on the First Home Guarantee.
Source: CoreLogic (via YIP, mid-2026); Housing Australia.
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What government grants and schemes can you use on a house and land package?
House and land packages built as new homes are among the strongest candidates for Queensland's first home buyer support, because the state's grants and duty exemptions are almost entirely focused on new builds.
Schemes that apply to new builds in North Brisbane:
- › Queensland First Home Owner Grant:$30,000 for eligible new homes under $750,000. The grant applies to the total contract value, including land and build. Not means-tested.
- › Transfer duty exemption on new homes: first home buyers pay zero transfer duty on a new home at any price, from 1 May 2025. This applies to the land component under a house and land contract.
- › First Home Guarantee (5% Deposit Scheme): buy with a 5% deposit and no LMI, no income test, capped at $1,000,000 on the completed home for North Brisbane buyers. Compatible with the FHOG.
- › Help to Buy: the live federal shared-equity scheme, contributing up to 40% of a new home's value. Income caps of $103,000 for singles and $165,000 for couples apply. The South East Queensland allocation of Boost to Buy is currently exhausted, so Help to Buy is the available shared-equity pathway for North Brisbane buyers.
- › Vacant land transfer duty concession: first home buyers purchasing residential vacant land to build on pay zero transfer duty, regardless of price, provided they intend to build their first home and move in within two years.
The FHOG for a house and land package is triggered by the foundations-laid date, not the contract date, where an owner-builder arrangement applies. For standard builder contracts, the contract date governs.
Source: Queensland Revenue Office; Housing Australia.
When does a house and land package not make sense?
A house and land package suits buyers who want a new home and can absorb the build timeline, but it's not the right structure for every situation.
If you need to move by a specific date, a build timeline of six to twelve months creates real risk. Delays happen, and most builder contracts include provisions that extend the completion date without necessarily compensating the buyer. A buyer who has already sold their existing home and is renting through the build is carrying two sets of costs simultaneously.
The $750,000 FHOG threshold is also a real constraint in most North Brisbane suburbs. At current medians, the combined land and build cost in suburbs like Alderley, Gordon Park or Stafford will typically exceed that ceiling, which means the grant disappears. Buyers who can access the grant are usually building in outer or developing areas further from the inner north, not in the established suburbs closest to the city. If the grant is central to your affordability calculation, confirm the combined cost before committing to a site.
How to finance a house and land package in North Brisbane, QLD, step by step
Step 1: Talk to us
We work out your borrowing capacity before you look at land or builder contracts, and confirm which grants and schemes you're eligible to use based on your exact situation.
Step 2: Assess your structure and get pre-approval
We identify whether you need a single combined facility or a two-stage land-then-construction structure, then submit a formal pre-approval with the lender best suited to your income type and build plan.
Step 3: Match your loan to the build contract and submit
Once you've signed your land contract and building contract, we submit the full construction loan application with the fixed-price contract, council plans, builder licence and insurance documents. The lender orders the as-if-complete valuation at this stage.
Step 4: Manage progress payments through to handover
We coordinate each draw-down request with your builder's progress claims, confirm the lender's inspection requirements at each stage, and stay across any variations that could affect your approved loan amount through to practical completion.
Where the as-if-complete valuation comes in short, I'd usually rather find a lender whose panel valuer is more familiar with new build pricing in that pocket of North Brisbane than argue the shortfall. Arguing a valuation takes weeks. A second lender often takes days. That's the comparison worth making first.
Tom Kelly · Director - Home & Car Loans, Kelly Brothers Finance · Chat to Tom →
What goes wrong when buyers finance a house and land package?
Where buyers lose ground on a house and land build:
- › Signing before finance is confirmed: land contracts in Queensland typically carry a five-business-day cooling-off period, with a 0.25% termination penalty. A buyer who signs without a construction pre-approval in place and then cannot get one loses that penalty and potentially the site.
- › Builder variations blowing the approved amount: upgrades added after the initial contract can push the build cost above the lender's approved limit. Most lenders require a new valuation and a reassessment for significant variations, which can delay progress claims at later stages.
- › A front-loaded builder payment schedule: some builder contracts request a higher share of funds early in the build. A schedule that draws 25% at slab and 35% at frame sits outside most lenders' standard terms and will typically be rejected or modified, delaying the project.
- › Applying to the wrong lender for construction: not every lender on a panel is comfortable with construction lending. A lender with limited experience in progress-draw administration will slow every milestone payment. The lender choice here is about capability, not just rate.
Frequently Asked Questions
Can I use the Queensland First Home Owner Grant on a house and land package?
Yes, provided the total contract value, land plus build, is under $750,000 and you're buying a new home. The grant is $30,000 and is not means-tested. The foundations-laid date applies if you're an owner-builder.
Do I need two separate loans for a house and land package?
Not always. Some lenders offer a single combined construction facility. Others require a standard land loan that converts or is refinanced into a construction loan at build commencement. Your lender panel determines which structure is available.
Is an offset account available on a construction loan?
Most lenders don't attach an offset account to a construction facility during the build period, since you're only drawing funds progressively. Once the loan rolls to a standard principal-and-interest home loan after practical completion, offset and redraw features typically become available.
What happens if my builder goes over the fixed price?
A fixed-price building contract binds the builder to the agreed amount. Legitimate variations require your written approval and may require a reassessment of your loan if they increase the approved build cost. Lenders do not automatically fund variations above the original approved amount.
Is the First Home Guarantee available on a house and land package?
Yes. The scheme applies to new homes with a completed value under $1,000,000 for North Brisbane buyers. You buy with a 5% deposit and no LMI, and there is no income test. It's compatible with the Queensland FHOG.
Should I use a mortgage broker or go directly to a lender for a construction loan?
A mortgage broker, every time. Construction lending policy differs sharply between lenders, from acceptable payment schedules to which builders they'll accept and how quickly they process progress claims. Comparing across a panel finds that difference before you're locked in.
Your Next Steps
Financing a house and land package in North Brisbane is more involved than a standard purchase, and the decisions you make before signing anything shape the whole experience. Getting your construction loan structure right, your grant eligibility confirmed, and your pre-approval in place before you commit to a site and a builder removes the main points of risk.
Ready to find out which lenders will work best for your house and land build? Contact the Kelly Brothers Finance team or call 07 3847 9450. We'll canvas our 60+ lender panel and find the most suitable options for your circumstances.
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External Resources
Kelly Brothers Finance · North Brisbane, QLD · Kelly Brothers Brokerage Pty Ltd (ACN 662 331 320), authorised under Australian Credit Licence 517192 · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
