House and Land Packages: What Como First Home Buyers Need

How Much Deposit Do You Need for a House and Land Package in Como?

A 5% deposit is enough to purchase a house and land package through the Australian Government 5% Deposit Scheme. The scheme eliminates the need for lenders mortgage insurance and allows you to buy with a smaller upfront contribution than the conventional 20% deposit. For a package valued at $750,000, that means a $37,500 deposit instead of $150,000.

The scheme applies across Western Australia with a price cap of $850,000 for Como and other Perth metropolitan postcodes. Both the purchase price and the lender's assessed value must sit at or below that cap. You can combine this scheme with state-based stamp duty concessions, which reduces your upfront costs further. Applications are made through participating lenders, not directly through Housing Australia, so you'll need to work with a broker or lender who offers access to the scheme.

Consider a buyer purchasing a house and land package in Como valued at $680,000. With a 5% deposit of $34,000 and no lenders mortgage insurance to pay, they avoid the additional $20,000 to $25,000 that would typically apply on a 5% deposit outside the scheme. They also qualify for the Western Australian first home owner rate of duty, which means no stamp duty is payable on the home component. That buyer saves around $45,000 in upfront costs compared to a conventional 10% deposit loan with LMI.

Can You Use the First Home Owner Grant on a House and Land Package?

You can claim the $10,000 first home owner grant when purchasing a house and land package in Western Australia. The grant applies only to new homes, which includes house and land packages where the dwelling has not been previously occupied. The value cap is $800,000 for properties south of the 26th parallel, which includes Como and the broader Perth area.

You must occupy the home as your principal place of residence for at least six continuous months starting within 12 months of completion. The grant is typically paid at settlement of the land or on completion of the build, depending on the contract structure and lender requirements. Some buyers apply the grant toward deposit or construction stage payments, while others use it to cover settlement costs or reduce the loan amount.

What Stamp Duty Concessions Apply to First Home Buyers in Como?

Western Australia offers a full stamp duty exemption on homes valued up to $600,000 and a concessional rate on homes between $600,001 and $800,000 under the first home owner rate of duty. For a house and land package valued at $680,000, the concessional rate applies at $16.15 for every $100 above $600,000, which works out to around $12,920 in duty instead of the standard rate of approximately $23,000. That concession saves roughly $10,000.

If the package is valued at $590,000, no stamp duty is payable at all. The duty applies to the total contract value, which includes both the land and the dwelling. The concession is not linked to the first home owner grant, so you can access the duty concession even if your package exceeds the $800,000 grant cap, provided the value remains under the $800,000 duty threshold.

How Does Pre-Approval Work for a House and Land Package?

Pre-approval for a house and land package involves two separate assessments. The lender approves the land purchase first, then separately approves the construction loan once the house plans and building contract are finalised. You'll need to provide the lender with a signed land contract, building contract, soil test, council approvals and detailed construction plans before the second approval is issued.

Most lenders will issue conditional approval based on the land contract alone, but funds are not released for construction until the building contract is assessed and approved. The construction loan is drawn down in stages as the build progresses, with the lender conducting inspections at each stage before releasing funds to the builder. This process differs from purchasing an established home, where a single settlement occurs and the full loan is drawn at once.

In our experience, buyers underestimate the time required between signing the land contract and receiving construction approval. If the building contract or council documentation is delayed, the pre-approval period may expire before construction funding is confirmed. That can require a fresh assessment under different lending criteria or at a different interest rate, which may affect borrowing capacity or repayment structure.

Should You Choose a Fixed or Variable Rate for a House and Land Package?

A variable rate loan offers flexibility during the construction phase, allowing you to access an offset account and make extra repayments without restriction. During construction, you only pay interest on the funds drawn down at each stage, so having an offset account linked to your loan can reduce the interest charged while the build is in progress. Once construction is complete and the loan converts to principal and interest repayments, the offset continues to reduce interest on the full balance.

A fixed rate provides repayment certainty but typically limits access to offset accounts and may restrict extra repayments to a set amount per year. Some buyers use a split loan structure, fixing a portion of the loan to lock in a portion of the repayment and leaving the remainder on a variable rate to retain flexibility. That structure can work during construction if the lender allows the fixed portion to be drawn progressively or if the fixed rate applies only after construction is complete.

Confirm with your lender how the loan structure will operate during the construction phase and whether offset or redraw facilities remain available once the loan converts to principal and interest.

What Loan Features Should You Look for When Buying a House and Land Package?

An offset account is one of the most useful features during and after construction. It allows you to park savings in a transaction account linked to your loan, reducing the interest charged on the outstanding balance. During construction, when you're only paying interest on progressive drawdowns, an offset account can reduce costs significantly if you're holding funds for upcoming stage payments or simply building savings while waiting for completion.

Redraw is an alternative that allows you to make extra repayments and withdraw them later if needed, but it is less flexible than offset and may involve fees or restrictions on how much you can access. Some lenders also limit redraw availability on construction loans during the interest-only phase, so confirm access before committing to a loan.

Look for a loan with no monthly account fees, unlimited extra repayments on the variable portion, and the option to apply for further drawdowns or top-ups without a full re-assessment. Construction delays or cost variations can sometimes require additional funds, and having a loan structure that allows for adjustments can avoid the need to refinance or take out a second facility mid-build.

How Do You Structure a Deposit When Land and House Settle Separately?

The deposit for a house and land package is usually split into two portions. The first portion, typically 5% to 10% of the land value, is paid when the land contract is signed. The second portion, if required, may be paid on settlement of the land or applied to the building contract deposit once construction begins. The total deposit across both contracts generally needs to meet the lender's minimum deposit requirement, whether that's 5%, 10% or 20%.

If you're using the 5% Deposit Scheme, the lender calculates the deposit based on the combined value of the land and the completed dwelling. You'll need to provide a signed building contract and council-approved plans before the lender finalises the total loan amount and confirms the deposit structure. Some buyers use the first home owner grant to cover part of the land settlement or to reduce the amount they need to borrow for construction, which lowers the ongoing repayment once the loan is fully drawn.

Confirm with your mortgage broker how the deposit will be applied across the two contracts and whether the lender requires a higher deposit on the land portion before approving the construction loan.

Can You Use Gifted Funds for Your Deposit on a House and Land Package?

Most lenders accept gifted funds from immediate family members as part of your deposit, provided the gift is genuine and accompanied by a signed declaration confirming the funds are non-repayable. The lender will ask for bank statements showing the transfer and may require evidence of the donor's savings history to confirm the funds are not borrowed.

If you're using the 5% Deposit Scheme, you can combine gifted funds with your own genuine savings to meet the minimum deposit requirement. Some lenders require a portion of the deposit to come from your own savings rather than entirely from a gift, so confirm the lender's policy before relying on gifted funds as your primary deposit source.

Another option is a guarantor loan, where a family member uses equity in their own property to support your application. This can allow you to borrow with a smaller deposit or avoid lenders mortgage insurance entirely, but it does place the guarantor's property at risk if you're unable to meet repayments.

What Happens if the Build Is Delayed?

Construction delays can affect your loan approval timeline, particularly if your pre-approval expires before the build is complete. Most lenders issue pre-approval for three to six months, and if construction takes longer than expected, you may need to reapply or extend the approval under updated lending criteria.

During construction, you'll be making interest-only payments on the funds drawn down at each stage. If the build is delayed, those interest payments continue for a longer period before the loan converts to principal and interest. That can affect your cash flow, particularly if you're also paying rent while waiting for the home to be completed.

If the delay is significant or the builder encounters financial difficulty, you may need to engage a different builder to complete the work. That can require additional lender approval and may affect the total loan amount if the cost to complete exceeds the original contract price. Confirm with your lender how delays or builder changes are managed and whether your loan structure allows for variations to the original contract.

Call one of our team or book an appointment at a time that works for you to discuss your house and land package purchase and confirm which deposit options and loan structures suit your situation.

Frequently Asked Questions