Home Loans for House and Land Packages in East Brisbane, QLD, Your Practical Guide

If you're drawn to a brand-new home in East Brisbane, QLD but the idea of buying a finished property at today's prices feels out of reach, a house and land package is worth understanding properly. You pay for the land first, then draw down the construction loan in stages as the build progresses, which means you're only paying interest on what has actually been spent, not the full loan amount from day one.

The catch is that construction lending works differently from a standard home loan, and the differences matter. Lenders assess you twice: once when you buy the land, and again when you're ready to build. Getting your structure right from the start, including which loan type covers which part of the purchase, is where most buyers run into trouble.

At AE Finance Solutions, we help buyers across East Brisbane, QLD work through the lending side of new builds and house and land packages, comparing options across our panel of 60+ lenders. The construction loan structure you use will shape your repayments, your progress payments, and what happens at the end of the build.

Can you get a construction loan for a house and land package in East Brisbane, QLD?

Yes, and it's one of the most common uses of construction lending in the area. A house and land package typically splits into two separate loan components: a standard land loan that settles when you purchase the block, and a construction facility that draws down in progress payments as each stage of the build is completed. The lender holds the full approved amount but charges interest only on what's been released, so your repayments stay lower during the build.

How does a construction loan actually work for a house and land package?

The loan is approved against the combined value of the land and the completed dwelling, assessed on an "as if complete" basis by the lender's valuer. You need a fixed-price building contract with a licensed builder and council-approved plans before any funds are released. From there, the lender draws down against six standard construction stages.

The typical progress payment schedule:

• › Deposit: 5% of the build contract, paid to the builder at signing.
• › Slab or base: 10% to 15% of the contract value once the slab is poured.
• › Frame: 20% when the frame is erected and inspected.
• › Lock-up: 20% once the exterior walls, windows and roof are complete.
• › Fit-out or fixing: 30% as internal fit-out is completed.
• › Practical completion: the final 10% once the build is certified and you receive the keys.

During the build, repayments are interest-only and calculated on the drawn balance, not the total approved amount. At practical completion the loan rolls into a standard principal and interest home loan for the remaining term. Lenders inspect the property before releasing most stages, typically at slab and again at completion on straightforward builds.

One builder-schedule issue worth flagging: some builders front-load their payment claims, requesting a larger percentage at slab or frame than the industry standard. Lenders will usually push back on a schedule that deviates significantly from the conventional breakdown, which can delay a progress payment while the schedule is renegotiated. Your broker can flag this before you sign the building contract.

Source: APRA.

What do you need to qualify for a construction loan in East Brisbane?

Lenders assess two applications in sequence: your land purchase and your construction draw-down. The land component is assessed like a standard home loan. The construction component requires additional documentation specific to the build.

What lenders need before approving a construction facility:

• › Fixed-price building contract: signed with a licensed Queensland builder, showing the total contract price and the progress payment schedule.
• › Council-approved plans: development approval or building permit confirming the dwelling is approved to be built on that lot.
• › Builder's licence and insurance: the lender verifies the builder's Queensland Building and Construction Commission licence and checks that home warranty insurance is in place.
• › Income evidence: payslips, tax returns or business financials depending on your employment type, covering the same period a standard home loan would require.
• › Sufficient deposit: most lenders want a combined land-and-build deposit of at least 5% to 10% of the total completed value, not just of the land purchase price.

What government schemes can buyers use on a house and land package in East Brisbane?

New builds qualify for more assistance than established purchases across most government pathways. Because a house and land package produces a never-previously-occupied dwelling, it sits inside the "new home" definition for every relevant Queensland and federal scheme.

The schemes worth checking for your package:

• › Queensland First Home Owner Grant ($30,000): available on new homes never previously occupied or sold as a residence, valued under $750,000, for contracts signed from 20 November 2023. Not means-tested. Eligibility is triggered by the build contract date, not the land settlement date.
• › Transfer duty concession (new home, no value cap): first home buyers who entered a new home contract from 1 May 2025 pay no transfer duty, regardless of the property value. The concession applies to the residential land component; duty may apply on any non-residential portion.
• › First Home Guarantee (5% deposit, no LMI): the federal scheme applies to new builds with an East Brisbane price cap of $1,000,000. Every approved suburb in the service area sits within the City of Brisbane at the capital-city cap. Your land plus build contract price must stay under $1,000,000 to be eligible.
• › Help to Buy (federal shared equity): new homes attract up to 40% government equity, compared with 30% on established homes. Income caps of $103,000 for singles and $165,000 for joint applicants apply for the 2026-27 financial year. The price cap is $1,000,000 for this area.
• › Negative gearing exemption (investors): under the legislation that takes effect 1 July 2027, eligible new builds retain full negative gearing while established properties purchased after Budget night 2026 do not. A house and land package settled as a new build may qualify for the exemption, though investors should confirm their specific structure with their accountant.

Boost to Buy, Queensland's state shared-equity scheme, is not currently available in South East Queensland. SEQ allocations were exhausted in Round 2 as at 1 July 2026. Federal Help to Buy is the live shared-equity pathway for East Brisbane buyers.

Source: Queensland Revenue Office and Housing Australia.

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What does a house and land package cost to finance in East Brisbane?

CoreLogic data shows every house median across the approved East Brisbane suburbs sits above $1,000,000, ranging from $1,317,500 in Salisbury to $2,340,000 in Hawthorne. That means most house and land packages in the area will be priced above the FHOG's $750,000 new-home cap and above the $1,000,000 federal scheme cap, so scheme eligibility depends heavily on where in the broader market the land and build price lands.

For buyers whose combined land and build contract stays under $750,000, the $30,000 FHOG applies alongside stamp duty savings on the new home. For contracts between $750,001 and $1,000,000, the First Home Guarantee and the duty concession still apply, but the FHOG does not. Above $1,000,000, the federal guarantee and Help to Buy also fall away, and buyers are financing the full package without scheme support.

The deposit and LVR options worth weighing:

• › 5% deposit via First Home Guarantee: 5% deposit · no LMI · price cap $1,000,000 · first home buyers only · places limited per year
• › Standard 10% deposit with LMI: 10% deposit · LMI premium applies · no price cap · available regardless of buyer history
• › 20% deposit, no LMI: 20% deposit · no LMI premium · broader lender choice · lower interest rate pricing in most cases

For packages priced between $800,000 and $1,000,000 with a 5% deposit, LMI on the construction facility can add approximately $27,000 to $41,500 to the loan balance if the First Home Guarantee is not used. That is a real cost worth factoring before committing to land.

Source: CoreLogic (via YIP, mid-2026) and Housing Australia.

When does a house and land package not make sense in East Brisbane?

The new-build premium is real. Developers and builders price their margin into house and land packages, so the completed dwelling often costs more per square metre than a comparable established home in the same suburb. If the land value in a given pocket is already strong, you can end up paying a full retail build margin on top of it.

The scheme eligibility picture also changes this calculation. If your package price sits above $1,000,000, you're financing without the First Home Guarantee, without Help to Buy, and without the FHOG. An established unit in a suburb like Woolloongabba or Morningside at a lower price point would qualify for more assistance, and the net cost after schemes may be lower even if the unit price is close to the package price.

There's also a timing risk that doesn't exist with an established purchase. The build takes six to twelve months. During that period the lender's valuation is locked at the "as if complete" figure assessed before the build begins. If the market shifts, or if the builder's costs escalate beyond the fixed price, you absorb that exposure. A fixed-price contract protects you from builder cost overruns, but a short fixed period on your land loan can roll into a higher rate before the construction facility starts drawing down.

How to finance a house and land package in East Brisbane, QLD, step by step

Step 1: Talk to us

We start by working out your combined land and build budget, which lenders on the panel offer construction facilities, and whether any scheme applies to your package price.

Step 2: Assess the land and confirm the builder

We review the land contract and the proposed building contract together, check the builder's licence and payment schedule against lender requirements, and flag any schedule structure that could delay progress payments.

Step 3: Structure and submit your application

We prepare and submit a dual-component application covering the land purchase and the construction facility, ordering the "as if complete" valuation and managing the lender's documentation requirements at both stages.

Step 4: Manage draw-downs through to keys

We coordinate with the lender at each progress payment stage, confirm inspections are completed before funds are released, and manage the transition from interest-only construction repayments to your principal and interest loan at practical completion.

What goes wrong when buyers finance a house and land package?

The common points where things stall or cost more than expected:

• › Builder's payment schedule rejected: the builder requests a front-loaded progress payment the lender won't release. This stalls the build and often requires renegotiating the contract, which takes weeks. Checking the schedule against lender requirements before signing is the fix.
• › Land loan rate rolling before construction starts: land settlements and build commencements don't always happen in quick succession. A fixed rate on the land loan can expire and roll to a higher variable rate if the build is delayed, adding unexpected holding costs.
• › Valuation comes in below the combined contract price: the lender's "as if complete" valuation is completed before the build, and if it falls short of the land plus build price, the buyer covers the difference in cash. This happens most often where new estates haven't established comparable sales yet.
• › FHOG eligibility missed because of the $750,000 cap: buyers who don't check the combined land and build price against the grant cap before signing sometimes find they've structured the package just over the threshold and missed $30,000 in grant money that wasn't recoverable.

For buyers whose package sits close to $750,000, structuring the land and build contracts to keep the combined price just under the cap is worth a conversation before exchanging.

Frequently Asked Questions

Does the Queensland First Home Owner Grant apply to a house and land package?

Yes, the $30,000 FHOG applies to house and land packages where the total price is under $750,000 and the completed home has never been previously occupied or sold as a residence. Eligibility is assessed at the build contract date, not the land settlement date.

Can I use a 5% deposit on a house and land package in East Brisbane?

Yes, through the First Home Guarantee, which removes LMI on a 5% deposit for eligible new builds. The combined land and build price must stay under $1,000,000, which is the East Brisbane capital-city cap for this scheme.

Is a construction loan or a standard home loan better for a house and land package?

A construction loan is the right structure for a house and land package. It draws down in stages so you only pay interest on what's been spent, whereas a standard loan would charge interest on the full amount from day one, which costs significantly more during the build period.

What happens if my builder's progress payment schedule doesn't match the lender's?

The lender will usually decline to release funds at a non-standard milestone until the schedule is renegotiated. This can delay the build by several weeks. Confirming the builder's schedule aligns with your lender's requirements before signing the building contract avoids the problem entirely.

Can investors use a house and land package to retain negative gearing after 2027?

Potentially yes. Under legislation commencing 1 July 2027, eligible new builds retain full negative gearing where established properties purchased after Budget night 2026 do not. Investors should confirm their specific package qualifies with their accountant before relying on this.

Is a mortgage broker or a bank better for financing a house and land package?

A mortgage broker, every time. Construction lending is more complex than a standard purchase, and lenders differ significantly in their progress payment policies, accepted builder schedules and "as if complete" valuation requirements. A broker who can compare those policies across multiple lenders will identify the most suitable option for your build.

Your Next Steps

Getting the lending structure right on a house and land package matters more than it does on an established purchase. The scheme eligibility, the progress payment timing, the land loan structure and the build contract all interact with each other in ways that aren't obvious until something stalls.

If you're looking at a house and land package in East Brisbane, QLD, the conversation worth having is before you sign the land contract. Contact the AE Finance Solutions team or call 0422 868 524. We'll work through where you stand across our 60+ lender panel and make sure the structure fits both the build and the budget.

About the author Abel Desta Director & Mortgage Broker, AE Finance Solutions Abel Desta is the Director and Mortgage Broker at AE Finance Solutions, an East Brisbane brokerage. Specialising in home finance, he helps first home buyers, upgraders and investors across the East Brisbane region. Abel is a credit representative (467836) of LMG Broker Services Pty Ltd (ACN 632 405 504), Australian Credit Licence 517192, and compares loans across a panel of 60+ lenders at no cost to the borrower. Meet Abel → LinkedIn

AE Finance Solutions, QLD, Australia. This is general information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.