Home & Land Package Loan Solutions in Sydney

Types of Home and Land Package Loans

Every home and land package scenario is different. Here are the main loan structures we arrange.

1. 1

   Combined Land and Construction Loan (Standard Package)

   The most common structure for a house and land package purchase in Sydney and NSW. Two contracts (one for land, one for construction) are combined into a single lending arrangement with two distinct components: the land purchase settles first, then the construction loan funds the build in progress payment stages. This is the structure used in virtually all new housing estate purchases across Sydney's northwest and southwest growth corridors. Interest during construction is charged only on the amount drawn to date, which reduces your carrying costs during the build period. Once the build is complete, the loan rolls over to standard principal and interest repayments on the full balance.

2. 2

   Land Loan Only (with Construction Finance Arranged Later)

   Some buyers purchase vacant land first (either in a new estate ahead of registering a build contract, or in an established suburb for a custom build) and arrange construction finance separately when they're ready to build. In this scenario, a land loan covers the purchase, and a separate (or converted) construction loan is arranged when the build contract is signed. Lenders typically require construction to commence within a set timeframe from land settlement (often 12–24 months). If you're buying land speculatively or ahead of finalising a builder, we help you structure the land loan correctly from the start so there are no complications when construction finance is added later.

3. 3

   First Home Buyer Home and Land Package Loan

   First home buyers purchasing a house and land package have access to several significant financial benefits. From 1 October 2025, the Australian Government's 5% Deposit Scheme (Home Guarantee Scheme) has no income caps, no place limits, and a property price cap of $1,500,000 for Sydney and major NSW regional centres. Eligible first home buyers can access a 5 percent deposit home and land package loan without paying Lenders Mortgage Insurance. Additionally, the NSW First Home Owner Grant of $10,000 applies to new homes (including house and land packages) with a combined land and construction contract value of up to $750,000 combined. Stamp duty on a house and land package is calculated on the land component only. We work specifically with first home buyers on home and land package finance every day.

4. 4

   Investment Home and Land Package Loan

   Investors building new properties through house and land packages benefit from higher depreciation deductions on new builds, no immediate maintenance costs, and the ability to attract quality tenants in newly established estates. Land and construction loans for investment purposes are structured similarly to owner-occupier packages but are assessed with investment loan criteria (slightly higher interest rates, potentially stricter serviceability assessment). Interest-only construction periods are particularly aligned with investment loan strategies. We structure investment house and land package loans to maximise cash flow during and after the build period.

5. 5

   Owner-Builder and Custom Build Loans (Non-Standard Builds)

   Owner-builder loans (where the borrower manages the build themselves without a licensed general contractor) are handled by a very small number of lenders and carry significantly stricter criteria. Most major banks will not lend to owner-builders. We have access to specialist lenders who consider these applications, though deposit requirements are typically higher (often 30–40% of total project cost) and rates are less competitive than standard construction loans. For custom builds on land you already own or are purchasing (where you've selected your own architect, engaged a licensed builder and are not buying through a developer-run estate), we arrange construction loans through our panel of lenders whose policies support bespoke construction scenarios.

Understanding Land and Construction Loan Finance

A close look at each stage of the finance process, from land settlement through to construction completion.

1. 1

   The "to be erected" (TBE) valuation

   Before approving your combined land and construction loan, the lender commissions an independent valuation of what the completed property will be worth when the build is finished. This is called a "to be erected" or TBE valuation. The lender uses this completed value (not just the sum of the land price and construction contract value) to determine how much they'll lend and at what LVR. If the TBE value comes in below your combined land price and build contract cost, the lender will only lend against the lower valuation figure. We assess the valuation risk before you commit to a land or construction contract, and we target lenders whose TBE valuation policies are most favourable for your build scenario and location.

2. 2

   The two-contract structure

   Most standard house and land packages involve two separate contracts: a contract of sale for the land (with the land developer or estate) and a fixed-price building contract (with your chosen builder). Both contracts must be provided to the lender as part of the loan application. The building contract must be fixed-price; most lenders will not fund cost-plus or labour-only contracts. The builder must be fully licensed. We review both contracts before your application is lodged to identify any conditions, variations or clauses that might cause lender concern.

3. 3

   Progress payment stages and drawdowns

   Construction loans release funds progressively across build milestones. The standard structure follows five to six stages: Base/Slab (10–15%), Frame (20–25%), Lock-Up (20–25%), Fix-Up/Fixing (20%), Practical Completion (10–15%). At each stage, your builder issues a progress claim invoice, which you sign and forward to the lender. The lender may commission a site inspection to verify stage completion before releasing funds. You only pay interest on the cumulative amount drawn to date, not the full loan balance.

4. 4

   Managing the gap between land settlement and construction commencement

   One of the most overlooked costs in a home and land package purchase is the carrying cost between land settlement (when you start paying the land loan) and construction commencement (when the first construction drawdown occurs). During this period, you're paying interest on the land loan in full while waiting for construction to start. We factor this into your pre-purchase planning so you're not surprised by cash flow pressure before a single brick is laid.

5. 5

   Conversion to a standard home loan at completion

   Once the final progress payment is released and the build is complete, the construction loan automatically converts to a standard home loan, typically a principal and interest variable rate loan. At this point, your repayments increase from interest-only on the drawn amount to full principal and interest repayments on the complete loan balance. We ensure the post-construction loan structure is planned before the build commences.

What Do You Actually Need to Buy a Home and Land Package?

A clear breakdown of the upfront costs and deposit requirements for a home and land package purchase in Sydney and NSW.

1. 1

   Land Deposit (Exchange Deposit)

   When you exchange contracts for the land, you'll typically need to pay a 10% deposit on the land price. This is paid directly to the vendor or developer. Example: $450,000 land purchase: 10% deposit = $45,000 required at exchange of land contracts.

2. 2

   Builder's Deposit

   When you sign your fixed-price building contract with your builder, you'll typically be required to pay a builder's deposit, usually 5% of the build contract value. Example: $380,000 build contract: 5% builder's deposit = $19,000 payable at contract signing.

3. 3

   Land Stamp Duty (NSW)

   Stamp duty is payable on the land purchase price in NSW, not the combined package value. For first home buyers, concessions apply on land up to $450,000. Use our NSW Stamp Duty Calculator to estimate the exact amount. Stamp duty is payable within 3 months of exchange of the land contracts and cannot be added to your loan.

4. 4

   Loan-to-Value Ratio (LVR) and Remaining Deposit

   After land exchange and the builder's deposit, your formal loan deposit requirement is calculated on the total project value (land + build contract) less the amount you've already contributed. The minimum LVR for most standard home and land packages is 80% (20% deposit) to avoid LMI, or as low as 95% (5% deposit) for eligible buyers using the 5% Deposit Scheme.

5. 5

   Additional Build Costs Not Included in the Standard Package

   Common costs not included in the standard package price: driveway and crossover construction, landscaping and turf, window furnishings and blinds, clothesline and letterbox, site costs (challenging soil, sloping blocks), upgrades to standard inclusions, fencing and boundary works. Site costs in particular can vary significantly depending on the specific block. We strongly recommend confirming site costs before signing a building contract.

Speak with us before you budget; we help our clients plan for the full cost of a home and land package purchase, not just the loan amount.

What Do Lenders Look for in a Home and Land Package Loan Application?

7 key assessment factors: Fixed-price building contract; licensed builder; council-approved plans (or Development Approval); TBE valuation supports total project cost; income, serviceability and existing debts; construction timeline (most lenders require build completed within 12 months from first drawdown, extendable if informed early); home insurance at completion (required before final progress payment). We review your application against all of these criteria before lodging with any lender.

Ready to have your situation assessed? Get a free strategy call; no credit check, no obligation.

Stamp Duty Advantages of Home and Land Packages in NSW

One of the most significant financial advantages of purchasing a house and land package is stamp duty savings. When you purchase a standard house and land package (two contracts: land and build), stamp duty in NSW is calculated on the purchase price of the land only, not the combined value of the completed land and home. For example: land $450,000 + build $400,000 = $850,000 project; on an established property at $850,000 you might pay approximately $33,000 stamp duty; on the package, duty is on the $450,000 land only, approximately $15,600. The saving is approximately $17,400. First home buyers: full exemption on vacant land up to $350,000, concessional rate $350,001–$450,000. The NSW First Home Owner Grant of $10,000 applies to new homes including house and land packages where combined land and construction value does not exceed $750,000.

Use our NSW Stamp Duty Calculator to estimate your liability, or speak with us and we'll confirm what applies to your specific scenario.

Can I Buy a Home and Land Package with a 5% Deposit?

Yes, and from 1 October 2025, the 5% Deposit Scheme makes this easier than at any point in the scheme's history. Key changes: No income caps; No place limits; NSW property price cap of $1,500,000 for Sydney and major NSW regional centres. The government guarantees up to 15% of the loan value so the lender treats your 5% deposit as equivalent to a 20% deposit. You avoid Lenders Mortgage Insurance (LMI). Example: first home buyer, land $450,000 + build $380,000 = $830,000 combined. Under the expanded scheme they need only $41,500 (5%) and pay no LMI. We confirm your eligibility, match you with participating lenders and manage the application process from start to settlement.

Home and Land Package Finance Across Sydney and NSW

RyRo Loan Centre is based in Norwest in Sydney's Hills District. We arrange home and land package loans for buyers across all of Sydney's growth corridors, regional NSW and across Australia.

Northwest Sydney: Norwest, Box Hill, The Ponds, Schofields, Riverstone, Marsden Park, Tallawong, Alex Avenue, Gables. This is our backyard; we know the specific estates, active builders and typical TBE valuation outcomes.

Southwest Sydney: Leppington, Gregory Hills, Spring Farm, Oran Park, Wilton, Appin, Gledswood Hills, Menangle Park.

We also work with buyers in Central Coast, Hunter Valley, Illawarra, Blue Mountains fringe, and outside NSW (Queensland, Victoria, South Australia, Western Australia). Each state has its own stamp duty rules, first home owner grant amounts and lender policy considerations.

Your Home and Land Package Loan: Step by Step

How we manage your home and land package finance from the first conversation to construction completion. 7 steps from first call to keys.

1. 1

   Step 1: Free Strategy Call: Before You Sign Anything

   Speak with us before you sign any land or building contracts. Getting your finance strategy right from the start (including deposit requirement, lender matching, TBE valuation risk, and first home buyer scheme eligibility) saves time, money and stress downstream.

2. 2

   Step 2: Borrowing Capacity and Deposit Assessment

   We assess your borrowing capacity based on your income, living expenses, existing debts and the total project cost (land plus build contract). We identify how much you need for land deposit, builder's deposit, balance at land settlement, stamp duty and any grant receipts.

3. 3

   Step 3: Lender Matching for Your Build Scenario

   We match you to the lenders most appropriate for your specific land location, builder, build timeline and financial profile, not just whoever has the lowest headline rate.

4. 4

   Step 4: Pre-Approval on Land and Construction Finance

   We obtain pre-approval for your land and construction loan combined, before you finalise your land or building contracts. In new estate releases, having pre-approval in place is essential.

5. 5

   Step 5: Application, Documentation and Formal Approval

   When your land and building contracts are finalised, we submit your full loan application and manage communication with the lender throughout to keep approval progressing without delays.

6. 6

   Step 6: Land Settlement and Construction Drawdown Management

   We coordinate land settlement with your conveyancer and the lender. Once land is settled, we manage the construction drawdown process at each progress payment stage so funds are released to your builder promptly.

7. 7

   Step 7: Construction Completion and Loan Conversion

   When the final progress payment is released and the builder hands over the keys, we confirm the loan conversion to a standard home loan and ensure you're on the most appropriate rate and structure for the post-construction period.

Ready to start? Get a free strategy call and we'll walk you through the full home and land package process for your situation, before you sign anything.

Free Calculators for Home and Land Package Buyers

4 tools to plan your purchase:

• 1. Borrowing Power Calculator: Estimate how much you can borrow before you start looking at land.
• 2. Construction Loan Repayment Calculator: Model interest-only repayments during construction and full P&I once complete.
• 3. NSW Stamp Duty Calculator: Calculate stamp duty on your land purchase, including first home buyer exemptions.
• 4. Loan Repayment Calculator: Estimate full home loan repayments on the completed loan balance.

We Support Every Stage of Your New Build Journey

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