A house and land package asks you to make finance decisions before you hold a single key. You will sign a land contract, then a building contract, and your funding needs to be lined up for both.
This article is for Frankston residents buying their first home who are considering a house and land package. The most useful thing to know is that the order matters. Pre-approval, scheme choice and contract signing need to happen in the right sequence, or you can lose access to support you would otherwise have qualified for.
What Victorian first home buyer concessions apply to a house and land package?
Victoria offers a $10,000 first home owner grant for new homes and a stamp duty exemption or concession for first home buyers, and a house and land package can potentially use both. Eligibility depends on value limits and on living in the home after settlement or completion.
The $10,000 grant applies to new homes that have never been sold or lived in, valued at $750,000 or less. For a house and land package with separate contracts, the land and build costs (including variations) are combined for this test. You must live in the home as your principal place of residence for at least 12 months, starting within 12 months of settlement or completion.
On duty, no land transfer duty is payable for a first home buyer on a dutiable value up to $600,000. A concession applies above $600,000 up to $750,000, and standard rates apply above that. The exemption and concession cover vacant land, which matters when you buy the land first. For vacant land, you must move in within 12 months of receiving the occupancy certificate or within 36 months of settlement, whichever comes first.
The trade-off is the residency requirement. These benefits can be claimed once, and they assume you will actually live in the home. How your land and build contracts are structured can affect the dutiable value, so ask your conveyancer to confirm the figure before you sign.
How the 5% Deposit Scheme and Help to Buy Compare for New Builds
The 5% Deposit Scheme lets eligible first home buyers purchase with a 5% deposit without paying LMI. Help to Buy is a shared equity scheme where the Australian Government contributes between 5% and 40% of the price of a newly built home. You cannot combine the two.
Under the 5% Deposit Scheme, Housing Australia backs the lender for the part of the loan between your deposit and 20% of the property value. There are no income caps. Where land and build are separate contracts, the combined cost must be at or below the price cap. The cap depends on the suburb and postcode in Housing Australia's postcode search tool, so check the exact figure for the Frankston postcode you are buying in. The trade-off is that the backing protects the lender, not you. You must move in within six months of settlement and keep living there while the backing is active, or the lender may require you to pay LMI.
Help to Buy suits buyers who cannot reach a workable loan on savings and borrowing capacity alone. You need a deposit of at least 2% from savings, and your lender assesses the rest. For a house and land package, you need a fixed-price building contract with a licensed builder who is not related to you, covering the whole build to a home ready to live in. The buyer must start construction within 12 months of becoming the registered owner of the land, and complete the build within 36 months.
The costs of Help to Buy are real. The Government's share rises and falls with the value of your home, so you share future growth with it. For the financial year starting 1 July 2026, the income threshold is $103,000 for a single applicant and $165,000 for joint applicants. Places are limited, only certain lenders offer it, and you cannot rent out the property or any room in it while the Government holds a share. You can still claim the Victorian grant and duty concessions alongside it.
Our first home buyers page explains how we help you weigh these options against your own numbers.
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Using the First Home Super Saver Scheme Before the Land Transfers
The First Home Super Saver scheme lets you release voluntary super contributions towards a first home, including a build on vacant land. You must request a determination from the ATO before ownership of the land transfers to you.
Up to $15,000 of voluntary contributions per financial year, and $50,000 in total, count towards release. Release usually takes 15 to 20 business days, so build that into your timeline. For a build on vacant land, the contract to construct must be entered into within 12 months of the release request, or another period the ATO allows. You must also notify the ATO within 90 days of signing.
The trade-off is that the money is locked in super until you request release, and tax applies to part of the released amount. If you do not sign a contract or recontribute within the time limits, extra tax of 20% of the assessable released amount applies. Speak with your accountant about how the scheme affects your own tax position before you make contributions.
A Worked Example: Budgeting a Loan on a House and Land Package
A couple buying a house and land package in Frankston should budget from the repayment backwards, using a rate that allows for movement. As an illustration, consider a couple who plan to borrow $500,000 over 30 years.
At the illustrative rate of 6.75% p.a., principal and interest repayments on $500,000 over 30 years come to about $3,243 a month. This figure is an example only. Your actual repayment depends on your lender, your deposit and the rate you are offered.
The couple's first worry is whether that fits their household budget alongside rent, which they would still be paying until the build finishes. They sit down with a broker, map their income and spending, and test the repayment against their borrowing capacity. They find the repayment is manageable, but only if they keep a buffer for a rate rise. So they set a firm ceiling for the combined land and build cost, and they ask their broker to compare home loans that suit their situation.
The outcome is a clear number to take to the land agent and the builder. They are not guessing at what they can afford, and they can say no to upgrades that push them over their ceiling. You can run your own figures through a repayment calculator before booking a meeting.
Why Pre-Approval Comes Before Signing Any Contract
Get pre-approval before you sign a land contract or pay a deposit on a package. For Help to Buy, Housing Australia states that you should not put a deposit down or bid at auction without conditional approval from a participating lender and Housing Australia.
A build also means your funding arrives in stages as work is completed. A construction loan is structured around that, so ask your broker how progress payments will be handled and what you will pay during the build. If your lender cannot support the structure, it is far better to find out before you commit to a builder.
Bayland Finance works with Frankston buyers through our Frankston mortgage broker service, and we are here to help you choose the right loan, the right scheme and the right order of events. Call one of our team or book an appointment at a time that works for you.
Frequently Asked Questions
Can I get the Victorian first home owner grant on a house and land package?
Yes, if the home is new and valued at $750,000 or less. For a house and land package with separate contracts, the land and build costs (including variations) are combined for this test. You must live in it as your principal place of residence for at least 12 months, starting within 12 months of settlement or completion.
Can I use Help to Buy and the 5% Deposit Scheme together?
No. Help to Buy participants cannot receive help from other schemes, including loan backing from the Australian Government. You can still use first home owner grants and stamp duty concessions with Help to Buy.
When do I need to apply for the First Home Super Saver scheme?
You must request a determination from the ATO before ownership of the land transfers to you. Release usually takes 15 to 20 business days, so speak with your accountant and plan early.
Why should I get pre-approval before buying a house and land package?
Pre-approval shows what you can borrow before you commit to a land contract or builder. For Help to Buy, you should not pay a deposit on a property without conditional approval.
