Home Loans For House And Land Packages Perth, WA, Your Practical Guide
A house and land package is one of the most popular ways to buy new in Perth, WA right now, and it's easy to see why. You lock in a fixed price on the land and the build at once, you get a brand-new home with a builder's warranty, and you're often eligible for the WA First Home Owner Grant that established homes simply can't offer. Whether you're a first home buyer stretching for an affordable entry point in the northern or southern corridors, or a mover upgrading to a larger home for a growing family, a package gives you cost certainty at the start of the process.
What many buyers don't realise is that the loan itself works quite differently from a standard purchase. You're not borrowing the full amount on day one. Instead, a construction loan draws down in stages as the build progresses, and you pay interest only on what's been released so far. That structure affects your approval, your deposit, and what your repayments look like during the build. Getting those details right before you sign a contract matters more than most buyers expect.
Our team helps buyers across Perth, WA navigate the lending side of new builds, comparing across 60+ lenders. The construction loan structure you choose, and the lender you use, can shape the whole experience from contract to handover.
Key takeaways
- Construction loans draw down in stages, so you pay interest only on what's released.
- The WA First Home Owner Grant of $10,000 applies to eligible new builds under $800,000.
- Land and construction are funded separately, so the deposit and approval sequence differs.
What makes a house and land package different from a standard purchase in Perth?
A house and land package splits into two separate contracts: one to purchase the land, and one to build the house. That split is what drives almost every difference in how lenders assess the loan and how the money flows. When you buy an established home, settlement happens on one day and the full loan starts immediately. With a package, you settle on the land first, often with a small loan, and then draw down the construction funds progressively as the build reaches each stage.
The practical consequence is that your borrowing capacity is assessed against the finished value of the property, but your repayments during the build are far lower than they'll be once construction is complete. You're only paying interest on each progress payment as it's released, so if the slab has been poured and $100,000 has been drawn, you're paying interest on $100,000, not the full loan. That cushion can make the build period easier to manage, but it also means lenders are assessing a property that doesn't exist yet.
Most lenders value the package on an "as if complete" basis, meaning they instruct a valuer to estimate what the finished home will be worth. If that valuation comes in below the total package price, you'll need to cover the gap in cash. This is one of the most common surprises for first-time builders, and it's one of the main reasons lender selection matters well before you sign.
How does a construction loan actually work in Perth, WA?
A construction loan releases funds in progress payments tied to build stages rather than as a lump sum. Lenders typically follow a schedule of five or six stages, and each draws down a share of the total approved amount once the builder certifies that stage is complete and a lender inspection confirms it.
The standard progress payment stages:
- › Deposit: typically 5% of the build contract, paid upfront to the builder before work begins.
- › Slab or base: 10% to 15% of the build cost, released when the foundation is poured and inspected.
- › Frame: around 20% released when the frame is up and the roof frame is in place.
- › Lock-up: around 20%, released when the home is enclosed with external walls, windows and doors.
- › Fit-out or fixing: around 30%, the largest draw, released as internal fit-out is completed.
- › Practical completion: the remaining 10% released at handover once the build is certified complete.
Interest is charged only on the drawn balance at each stage, so your repayments during the build stay well below what they'll be once the loan is fully drawn and rolls to principal and interest. Lenders inspect before releasing each payment, so a builder schedule that front-loads more than typical at the slab or frame stage will often be queried or adjusted.
Source: Reserve Bank of Australia; APRA.
"The most common thing we see is a buyer who has signed a package contract before anyone has looked at the valuation risk. The contract price and the lender's 'as if complete' figure don't always match, especially on smaller lots or in estates where comparable sales are thin. Getting the finance sorted first means you know exactly where you stand before you commit."
Joe Del Borrello · Director, Launch Finance · Chat to the Launch team →
What do you need to qualify for a house and land construction loan?
Construction loans carry their own set of document requirements on top of the standard income and credit checks. Lenders need to assess not just you, but the builder and the contract too. Getting these in order early prevents delays once you're ready to submit.
What lenders typically ask for:
- › Fixed-price building contract: a contract with a licensed builder, council-approved plans and specifications. The price must be fixed, not an estimate.
- › Land contract and title: the signed contract of sale for the land, and confirmation of the title details.
- › Builder's licence and insurance: evidence that the builder holds a current WA builder's registration and home indemnity insurance for the contract value.
- › Approved plans and permits: council-approved drawings and any development approvals required by the local council or the WA Planning Commission.
- › Standard income documents: payslips, tax returns or financials depending on your employment type, plus the usual bank statements and credit history.
Lenders assess your capacity to service the loan at full draw, even though your repayments start lower. The APRA serviceability buffer of 3.0% is added to the actual rate when calculating whether you can afford the loan once it's fully drawn and rolling on principal and interest.
What does a house and land package cost in Perth, WA?
The total cost of a package covers the land purchase, the build contract, and a set of upfront costs that catch many buyers off guard. Understanding each component helps you work out how much deposit you actually need and whether your savings are in the right position before you sign.
Land costs
Transfer duty (stamp duty) is payable on the land purchase. First home buyers in Perth who haven't owned before pay no duty on land priced at or below $450,000, and a concessional rate applies up to $550,000 under the WA Government's 2026-27 Housing Taxation Package. Above that, full general duty applies. The duty concession thresholds for first home buyers are now separate from the FHOG cap, so you can receive the duty concession on land priced above the FHOG's limit.
Build costs
The build contract price is fixed, but variations ordered during construction are common and come at a cost. A contingency of around 5% of the build value is a sensible buffer. There is no transfer duty on the build component itself, only on the land.
Other upfront costs
You'll also need to account for loan establishment fees, lender valuations (including the "as if complete" valuation), title registration, settlement agent fees for the land purchase, and connection of utilities to the lot. These vary by lender and by lot, and they're worth confirming before you finalise your budget.
For first home buyers, Perth suburbs where house and land packages are most common sit in the outer growth corridors. REIWA data for the 12 months to August 2026 shows house medians in Butler, Ellenbrook and Byford sitting at or under the $850,000 First Home Guarantee cap, making those corridors some of the most accessible for buyers using low-deposit schemes on a new build.
Source: REIWA (Landgate data, August 2026); RevenueWA.
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What government schemes can house and land buyers use in Perth?
Several state and federal schemes apply specifically to new builds, and a house and land package often unlocks more of them than an established purchase would. Eligibility runs on the property price, your income, and whether it's your first purchase.
The main options for new build buyers in Perth:
- › WA First Home Owner Grant:$10,000 for eligible new homes in Perth, capped at $800,000. Applies to house and land packages, off-the-plan purchases and owner-builds. Established homes are not eligible. Source: RevenueWA.
- › First Home Guarantee (5% Deposit Scheme): lets eligible first home buyers buy with a 5% deposit and no LMI. The Perth price cap is $850,000 with no income test. Applies to new builds. Source: Housing Australia.
- › WA first home owner rate of duty: nil duty on the land purchase up to $450,000, with a concessional rate to $550,000. The build component carries no duty. Source: RevenueWA.
- › Keystart Urban Connect Shared Equity: a WA Government scheme for new apartments, townhouses, villas and units, and new builds on small green-title or survey-strata lots up to 300 sqm in Perth metro. The government co-owns up to 35% of the property. Income caps apply. Places from the 1,000-loan allocation may be limited; confirm availability before relying on it.
- › Help to Buy: the federal shared equity pathway, up to 40% equity for new homes. Income caps apply ($103,000 single, $165,000 joint and single parent from 1 July 2026) and the Perth price cap is $850,000. Cannot be combined with the Keystart Urban Connect Shared Equity scheme.
Source: RevenueWA; Housing Australia; Keystart.
When does a house and land package not make sense?
A package is the right move for many buyers, but it's worth being clear about the situations where it's not. If you're looking at a package primarily because the headline price looks lower than established homes in the same area, check the total cost carefully. Land in an outer corridor at $280,000, plus a $380,000 build contract, reaches the same total as a three-bedroom established home in a suburb 15 kilometres closer to the city, with none of the build risk and no wait before you move in.
The build timeline is the other honest consideration. A standard build in Perth takes six to twelve months from contract to handover once all approvals are in place. If you're renting while you wait, that's six to twelve months of rent plus the interest on your land loan running at the same time. For buyers whose rental situation is already under pressure, or whose pre-approval is time-sensitive, that timeline can create real cash-flow stress.
If your priority is certainty, a comparable established home in Midland, Armadale or Gosnells at similar price points often gives you more predictability. Buyers for whom a new build makes the most sense are those with stable rent, a longer planning horizon, and a genuine preference for a new property and a builder's warranty.
"Where a buyer is renting under financial pressure and the build is twelve months away, we'd usually run through the established-home numbers alongside the package figures before making a recommendation. The package often wins on total grant entitlement, but the rent-plus-land-loan period is a real cost that the headline package price doesn't show. Most buyers are glad they did the comparison."
Joe Del Borrello · Director, Launch Finance · Chat to the Launch team →
How to get a house and land loan in Perth, WA, step by step
The sequence matters more with a construction loan than with a standard purchase, because decisions about land, builder and contract all flow from the finance position. Getting the order right saves time and reduces the risk of a contract you can't support.
Step 1: Talk to us
We start by assessing your borrowing position on both components, the land loan and the construction loan, so you know your total budget, your deposit requirements and which lenders are appropriate before you start looking at estates or builders.
Step 2: Confirm your land position and builder
Once your finance parameters are clear, you choose your lot and get a fixed-price building contract in place. We check the contract details and the builder's licence before submission so the lender's document requirements are met from the start.
Step 3: Submit and get approved
We submit the full application with all construction documents attached, manage the "as if complete" valuation process, and handle any queries from the lender so your approval is in place well before the land settles and the build clock starts.
Step 4: Manage draw-downs through to handover
We stay across the progress payment schedule during the build, coordinating with you and the builder at each stage so funds are released on time and there are no delays at critical points like frame or lock-up.
What goes wrong when people take out house and land loans in Perth?
The most common issues we see:
- › Valuation shortfall: the lender's "as if complete" figure comes in below the total package price, leaving a cash gap the buyer has to cover. This happens most often in new estates with limited comparable sales. Addressing it before the land contract is signed, not after, is the fix.
- › Front-loaded builder schedules: some builders request a larger percentage at slab or frame than lenders will accept. Where a schedule looks unusual, most lenders will push back or require modification before releasing funds at that stage.
- › Pre-approval lapse: formal approval can't be locked in for the full build period. A pre-approval typically lasts 90 days, and builds run six to twelve months. Rate and policy changes between pre-approval and completion can affect your final loan terms.
- › Underestimating the holding cost: buyers who haven't budgeted for rent plus land loan interest during the build period can find themselves stretched well before handover, especially if the build runs longer than expected.
Frequently Asked Questions
Can I use the WA First Home Owner Grant on a house and land package?
Yes, the $10,000 WA First Home Owner Grant applies to new homes, including house and land packages, where the total purchase price is at or below $800,000. Established homes are not eligible for the grant.
How much deposit do I need for a house and land package in Perth?
Most lenders require at least a 5% deposit on the total package value, though some require more depending on the LVR and lender type. Using the First Home Guarantee can reduce the effective deposit requirement and remove the need for LMI.
Is the stamp duty on a house and land package calculated on the full price?
No. Transfer duty in WA is assessed only on the land component, not the build contract. First home buyers pay nil duty on land up to $450,000, with a concession applying up to $550,000.
What happens if the valuation comes in below my contract price?
You'd need to cover the difference in cash, either by reducing your loan amount or increasing your deposit. It's worth having a buffer available, particularly in newer estates where comparable sales data is limited.
Can I fix my interest rate on a construction loan during the build?
Most lenders keep construction loans on a variable rate during the build because the loan balance changes at each draw-down stage. Once the loan converts to a standard home loan at completion, you can usually fix the rate at that point.
Should I use a mortgage broker or go directly to a lender for a house and land loan?
A mortgage broker, every time. Construction loans involve more documentation, stricter valuation requirements, and significant variation in lender policy on builder schedules and draw-down conditions. Comparing across a panel of 60+ lenders finds the right fit far more reliably than applying to one.
Your Next Steps
Getting a house and land loan right means understanding both the land and the build components together, before any contracts are signed. The lender you use, the way the valuation lands, and how the draw-down schedule is structured can all shape the experience from contract to handover.
Contact the Launch Finance team or call 08 9367 4222. We'll canvas our 60+ lender panel and find the most suitable options for your circumstances.
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External Resources
Launch Finance · Perth, WA · Launch Finance Pty Ltd (ABN 17 163 528 701), Corporate Credit Representative 454041 of BLSSA Pty Ltd (ABN 69 117 651 760), Australian Credit Licence 391237 · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
