Home loans for house and land packages

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What different scores mean

9+

Excellent

These home loans offer low costs, coupled with a host of features, giving the best overall value.

7+

Great

These home loans may have slightly higher interest rates or fewer features but overall, a competitive offering.

5+

Standard

Usually the home loans would offer above average rates. They may still include some competitive features.

0+

Basic

Higher costs and/or fewer features.

Much of the new home construction that takes place in Australia nowadays is done by property developers. When land is released by the government, developers acquire that land and build the necessary infrastructure to turn it into a residential area. They then either build homes and sell them to homebuyers, or they sell blocks of land. This allows buyers to select land and then build a home on top, customised to suit their tastes.

The house and land are often purchased together but as separate contracts: one for the land and then another to build the home. And you need loans for both.

Getting a home loan for a house and land package

Financing for house and land packages can be split into 2 parts: buying the block of land and then building the home. While it’s possible to take out a separate loan with different lenders for each part of the process, the most common approach is to bundle the land purchase and the home construction together with the one lender.

In most cases, the land can be purchased with a straightforward mortgage loan, which most Australians are familiar with. Once settlement occurs on the land, you then take out a construction loan to finance the building of the house.

You can apply for these loans through a lender or talk to a mortgage broker. Keep in mind that some lenders may not offer construction loans.

How do home loans for house and land packages work?

With a house and land package, the regular mortgage applies to the vacant block of land you are purchasing. It works just like any other normal home loan: you have a deposit and you borrow the rest. Your lender then charges you interest and you make regular repayments to pay down the principal and the interest.

Once the land purchase has been settled and a mortgage has been registered on the title, the second part of buying a house and land package involves taking out a construction loan to finance the new home build.

The construction loan process

Construction loans are set up a little differently to typical home loans. Rather than borrowing a lump sum, construction loans allow you to draw down money in staggered instalments at set stages of the construction process – for example foundations, frame and brickwork, lockup and completion. These draw-down amounts are fixed when you apply for a loan, so you will need to supply fully costed construction plans to the lender before your loan will be approved.

Along the way, you will only pay interest on the amount you draw down from the loan. But once construction is complete and the builder has been paid, the full mortgage will be in force and you will have to pay interest on the entire amount.

Construction loans usually require you to build within a specified time frame, such as 1 or 2 years.

Finding the right loan

The good news is that it’s not really any harder to obtain financing for a house and land package than it is to take out an ordinary home loan. These types of loans are offered by banks and non-bank lenders across Australia, with most people choosing to bundle an ordinary mortgage and a construction loan together with the same provider.

If you want to buy a house and land package and create your dream home, compare the interest rates, fees and features on offer from a wide range of lenders. This will help you find the most affordable home loan for your house and land package.

Tips for buying a house and land package

When searching for a house and land package, be sure to do the following:

• Visit multiple developments. Look at as many new developments and blocks of land as you can and get on a waiting list if the market is competitive.
• Research the developer and builder. Make sure the developer has a track record of delivering new homes as promised. Visit previous developments if possible and check out display homes.
• Research the surrounding area. Many new developments are on the fringes of city suburbs with fewer shops, schools and public transport. Some developers make big claims about new train stations and schools coming soon, but keep in mind that nothing is certain until it is actually built.
• Check your builder's credentials. The builder must be licensed and have insurance. Again, check their track record and previous work if possible.
• Work out exactly what you're looking for. After visiting a few sites and display homes you should have a clear idea of what you want and don't want in a house. A big part of buying land is tailoring the home construction to your needs. So communicate with the builder and get a very clear understanding about what is included and not included in the project.

Compare construction loans

1 - 16 of 16

Updated regularly

Name	Finder Score	Interest Rate p.a.	Comparison Rate p.a.	Fees	Monthly Payment
Adelaide Bank SmartFit Construction Home Loan Principal & Interest20% min. depositOwner-occupierOffset account Adelaide Bank SmartFit Construction Home Loan Principal & Interest20% min. depositOwner-occupierOffset account Details Fees Pros & cons Product Name Adelaide Bank SmartFit Construction Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.39% Comp. Rate p.a. 6.63% Minimum Loan Amount $10,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option No Loan Portable Extra Repayments Yes Application Fee $775 Lender's Legal Fee $0 Valuation Fee $240 Ongoing Fees $15 monthly ($180 p.a.) Settlement Fee $199 Discharge Fee $325 Pros Cons	Finder score 8.4 Great	Interest Rate 6.39%	Comparison Rate 6.63%	Fees Application: $775 Ongoing: $15 per month	Monthly Payment $939	Contact Broker Compare
AMP Bank Professional Package Variable Rate Home Loan Principal & InterestInterest only40% min. depositInvestmentOffset account$500k+ AMP Bank Professional Package Variable Rate Home Loan Principal & InterestInterest only40% min. depositInvestmentOffset account$500k+ Details Fees Pros & cons Product Name AMP Bank Professional Package Variable Rate Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Only Interest Rate p.a. 6.84% Comp. Rate p.a. 6.78% Minimum Loan Amount $500,000 Maximum Loan Amount $5,000,000 Maximum Loan Term 30 years Maximum LVR 60% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Yes Loan Portable Extra Repayments Yes Application Fee $0 Lender's Legal Fee $295 Valuation Fee Any valuation costs in excess of $550 Ongoing Fees $349 p.a. Settlement Fee $0 Discharge Fee $390 Pros Make extra payments with no penalty and access the funds via redraw upon request You can link a 100% offset account to your loan Cons There is a $349 annual package fee A discharge fee of $390 applies when you close your home loan account	Finder score 8.6 Great	Interest Rate 6.84%	Comparison Rate 6.78%	Fees Application: $0 Ongoing: $349 p.a.	Monthly Payment $983	Contact Broker Compare
loans.com.au Green Home Loan Interest only10% min. depositOwner-occupier loans.com.au Green Home Loan Interest only10% min. depositOwner-occupier Details Fees Pros & cons Product Name loans.com.au Green Home Loan Interest Rate Type variable rate Repayment Type Interest Only Interest Rate p.a. 6.43% Comp. Rate p.a. 6.69% Minimum Loan Amount $50,000 Maximum Loan Amount $1,200,000 Maximum Loan Term 30 years Maximum LVR ≤90% Loan Redraw Facility No Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable Extra Repayments No Application Fee $0 Lender's Legal Fee $0 Valuation Fee $230 Ongoing Fees $0 p.a. Settlement Fee $300 Discharge Fee $300 Pros Discounted rates for energy efficient properties Available with a 10% deposit Cons Offset account available for an additional rate of 0.10% (offset not available for construction loans)	Finder score 7.8 Great	Interest Rate 6.43%	Comparison Rate 6.69%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $943	Continue Compare
Great Southern Bank Basic Variable Principal & InterestInterest only10% min. depositInvestment Great Southern Bank Basic Variable Principal & InterestInterest only10% min. depositInvestment Details Fees Pros & cons Product Name Great Southern Bank Basic Variable Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Only Interest Rate p.a. 6.34% Comp. Rate p.a. 6.40% Minimum Loan Amount $100,000 Maximum Loan Amount $5,000,000 Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Extra Repayments Yes Application Fee $600 (waived if applying online) Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $235 Discharge Fee $500 Pros $0 Ongoing fee. Redraw Facility. Extra repayments are available. Cons A $500 discharge fee when closing the loan.	Finder score 8.8 Great	Interest Rate 6.34%	Comparison Rate 6.40%	Fees Application: $600 Ongoing: $0 p.a.	Monthly Payment $934	Continue Compare
Great Southern Bank Basic Variable Principal & Interest20% min. depositOwner-occupier Great Southern Bank Basic Variable Principal & Interest20% min. depositOwner-occupier Details Fees Pros & cons Product Name Great Southern Bank Basic Variable Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.24% Comp. Rate p.a. 6.30% Minimum Loan Amount $100,000 Maximum Loan Amount $5,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Extra Repayments Yes Application Fee $600 (waived if applying online) Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $235 Discharge Fee $500 Pros $0 Ongoing fee. Redraw Facility. Extra repayments are available. Cons A $500 discharge fee when closing the loan.	Finder score 8.6 Great	Interest Rate 6.24%	Comparison Rate 6.30%	Fees Application: $600 Ongoing: $0 p.a.	Monthly Payment $924	Continue Compare
Promoted Greater Bank Great Rate Home Loan Principal & Interest20% min. depositOwner-occupier Greater Bank Great Rate Home Loan Principal & Interest20% min. depositOwner-occupier Details Fees Pros & cons Product Name Greater Bank Great Rate Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 7.86% Comp. Rate p.a. 7.87% Minimum Loan Amount $30,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $180 Discharge Fee $300 Pros Redraw facility No application fee No monthly fees Cons Only a partial offset account is available Discharge fee of $300 Settlement fee of $180	Finder score 5.9 Standard	Interest Rate 7.86%	Comparison Rate 7.87%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $1,087	Continue Compare
Bank First Complete Variable Home Loan Principal & Interest5% min. depositOwner-occupierOffset account Bank First Complete Variable Home Loan Principal & Interest5% min. depositOwner-occupierOffset account Details Fees Pros & cons Product Name Bank First Complete Variable Home Loan Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.49% Comp. Rate p.a. 6.30% Minimum Loan Amount Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 95% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option No Loan Portable Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $400 Discharge Fee $395 Pros Cons	Finder score 8.8 Great	Interest Rate 6.49%	Comparison Rate 6.30%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $948	Continue Compare
Pacific Mortgage Group Construction Home Loan Principal & Interest20% min. depositInvestment Pacific Mortgage Group Construction Home Loan Principal & Interest20% min. depositInvestment Details Fees Pros & cons Product Name Pacific Mortgage Group Construction Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.33% Comp. Rate p.a. 6.33% Minimum Loan Amount $0 Maximum Loan Amount $5,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable Extra Repayments No Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $0 Pros No application fee Redraw Facility Cons Maximum LVR of 80%	Finder score 7.7 Great	Interest Rate 6.33%	Comparison Rate 6.33%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $933	Continue Compare
Great Southern Bank Basic Variable Principal & Interest10% min. depositOwner-occupier Great Southern Bank Basic Variable Principal & Interest10% min. depositOwner-occupier Details Fees Pros & cons Product Name Great Southern Bank Basic Variable Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.14% Comp. Rate p.a. 6.20% Minimum Loan Amount $100,000 Maximum Loan Amount $5,000,000 Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Extra Repayments Yes Application Fee $600 (waived if applying online) Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $235 Discharge Fee $500 Pros $0 Ongoing fee. Redraw Facility. Extra repayments are available. Cons A $500 discharge fee when closing the loan.	Finder score 8.7 Great	Interest Rate 6.14%	Comparison Rate 6.20%	Fees Application: $600 Ongoing: $0 p.a.	Monthly Payment $914	Continue Compare
Great Southern Bank Offset Variable Principal & InterestInterest only30% min. depositOwner-occupierOffset account Great Southern Bank Offset Variable Principal & InterestInterest only30% min. depositOwner-occupierOffset account Details Fees Pros & cons Product Name Great Southern Bank Offset Variable Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Only Interest Rate p.a. 6.19% Comp. Rate p.a. 6.25% Minimum Loan Amount $100,000 Maximum Loan Amount $5,000,000 Maximum Loan Term 30 years Maximum LVR 70% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option No Loan Portable Extra Repayments Yes Application Fee $600 (waived if applying online) Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 monthly ($0 p.a.) Settlement Fee $235 Discharge Fee $500 Pros Cons	Finder score 9.2 Excellent	Interest Rate 6.19%	Comparison Rate 6.25%	Fees Application: $600 Ongoing: $0 per month	Monthly Payment $919	Continue Compare
loans.com.au Solar Home Loan Interest only10% min. depositOwner-occupierConstruction loans.com.au Solar Home Loan Interest only10% min. depositOwner-occupierConstruction Details Fees Pros & cons Product Name loans.com.au Solar Home Loan Interest Rate Type Variable rate Repayment Type Interest Only Interest Rate p.a. 6.43% Comp. Rate p.a. 6.69% Minimum Loan Amount $50,000 Maximum Loan Amount $1,200,000 Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility No Offset Account No Split Loan Facility No Fixed Interest Option Loan Portable Extra Repayments After completion Application Fee $0 Lender's Legal Fee $0 Valuation Fee $230 Ongoing Fees $0 p.a. Settlement Fee $300 Discharge Fee $300 Pros Available for both owner-occupiers and investors No application or ongoing fees Extra repayments available Cons Minimum loan term of 15 years Late payment fee of $150 Have to pay an extra 0.10% p.a. if you want to add an offset account	Finder score 8.4 Great	Interest Rate 6.43%	Comparison Rate 6.69%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $943	Continue Compare
Family First Credit Union Construction Home Loan Principal & InterestInterest only5% min. deposit Family First Credit Union Construction Home Loan Principal & InterestInterest only5% min. deposit Details Fees Pros & cons Product Name Family First Credit Union Construction Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Only Interest Rate p.a. 6.20% Comp. Rate p.a. 6.28% Minimum Loan Amount $20,000 Maximum Loan Amount $600,000 Maximum Loan Term 30 years Maximum LVR 95% Loan Redraw Facility No Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable Extra Repayments Yes Application Fee $250 Lender's Legal Fee At cost Valuation Fee At cost Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $250 Pros Cons	Finder score 8.7 Great	Interest Rate 6.20%	Comparison Rate 6.28%	Fees Application: $250 Ongoing: $0 p.a.	Monthly Payment $920	Continue Compare
Homestar Star Classic Variable Rate Home Loan Principal & Interest20% min. depositOwner-occupier Homestar Star Classic Variable Rate Home Loan Principal & Interest20% min. depositOwner-occupier Details Fees Pros & cons Product Name Homestar Star Classic Variable Rate Home Loan Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.89% Comp. Rate p.a. 6.44% Minimum Loan Amount $150,000 Maximum Loan Amount $2,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility No Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable Extra Repayments No Application Fee $750 Lender's Legal Fee $264 Valuation Fee $244.20 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $595 Pros No ongoing fees No application fee Comes with up to 4 offset accounts Cons You can’t redraw from extra repayments If you want to deal with someone face-to-face, you can’t	Finder score 7.2 Great	Interest Rate 6.89%	Comparison Rate 6.44%	Fees Application: $750 Ongoing: $0 p.a.	Monthly Payment $988	Continue Compare
Great Southern Bank Offset Variable Principal & Interest10% min. depositOwner-occupierOffset account Great Southern Bank Offset Variable Principal & Interest10% min. depositOwner-occupierOffset account Details Fees Pros & cons Product Name Great Southern Bank Offset Variable Interest Rate Type Variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.59% Comp. Rate p.a. 6.65% Minimum Loan Amount $100,000 Maximum Loan Amount $5,000,000 Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option No Loan Portable Extra Repayments Yes Application Fee $600 (waived if applying online) Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 monthly ($0 p.a.) Settlement Fee $235 Discharge Fee $500 Pros Cons	Finder score 8.7 Great	Interest Rate 6.59%	Comparison Rate 6.65%	Fees Application: $600 Ongoing: $0 per month	Monthly Payment $958	Continue Compare
Greater Bank Ultimate Home Loan Principal & Interest5% min. depositOwner-occupierOffset accountNSW, QLD & ACT only Greater Bank Ultimate Home Loan Principal & Interest5% min. depositOwner-occupierOffset accountNSW, QLD & ACT only Details Fees Pros & cons Product Name Greater Bank Ultimate Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 7.66% Comp. Rate p.a. 8.01% Minimum Loan Amount $30,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 95% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Yes Loan Portable Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $395 p.a. Settlement Fee $180 Discharge Fee $300 Pros Low minimum loan amount of $150,000 100% offset account Free redraw facilities Maximum LVR of 90% Cons Annual fee of $395 Settlement fee of $180 Discharge fee of $300	Finder score 6.6 Standard	Interest Rate 7.66%	Comparison Rate 8.01%	Fees Application: $0 Ongoing: $395 p.a.	Monthly Payment $1,067	Continue Compare
Pacific Mortgage Group Construction Home Loan Principal & Interest20% min. depositOwner-occupier Pacific Mortgage Group Construction Home Loan Principal & Interest20% min. depositOwner-occupier Details Fees Pros & cons Product Name Pacific Mortgage Group Construction Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.14% Comp. Rate p.a. 6.14% Minimum Loan Amount $0 Maximum Loan Amount $5,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option No Loan Portable Extra Repayments No Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $0 Pros No application fee Redraw Facility Cons Maximum LVR of 80%	Finder score 7.8 Great	Interest Rate 6.14%	Comparison Rate 6.14%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $914	Continue Compare

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What is Finder Score?

The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.

Read the full Finder Score breakdown

Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

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