A house and land package gives you a brand-new property with a fixed build timeline and a deposit structure that fits shift income.
You pay for land first, then construction draws down as the build progresses. That split means you're not servicing the full loan until you move in, which matters when your income includes penalties and allowances that lenders assess differently. For QAS employees working rotating rosters, this structure aligns with how your pay is verified and how lenders calculate what you can borrow.
How Construction Finance Works with QAS Income
You'll need pre-approval before signing a house and land contract. Lenders assess your base salary plus a percentage of penalties and allowances, typically 80% of what you've earned consistently over the past 12 months. Your payslips and a letter from QAS confirming ongoing shift work give lenders the evidence they need.
Once approved, the loan splits into two stages. The land component settles first, and you start paying interest on that portion. The construction loan remains undrawn until each stage of the build is completed and certified by a valuer. That means you're not carrying the full loan amount during the build, which keeps repayments lower while you're still renting or living elsewhere.
Consider a QAS intensive care paramedic purchasing a house and land package in the growth corridor around Ripley or Yarrabilba. Land settles at around $250,000, and the build contract is $380,000. During construction, they're only paying interest on the land loan, which at current variable rates works out to roughly half what the full loan repayment would be. The construction loan doesn't fully activate until handover, giving them six to nine months to adjust budgets and finalise their move.
Deposit Requirements and LMI Waivers for Paramedics
Most lenders want 10% of the total package price as a deposit. Some will accept genuine savings, others allow gifted deposits from family, and a few will take equity from an existing property if you already own. QAS employees can access LMI waivers through select lenders, which means you can borrow up to 90% of the property value without paying Lenders Mortgage Insurance. That waiver applies to the combined land and construction value, not just the land component.
If you're using the First Home Owner Grant or a state-based scheme, check whether the package qualifies. House and land contracts are treated as off-the-plan purchases, and some grants require the property to be under a certain value or located in a regional area. Your broker will confirm eligibility before you commit.
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Why Build Timelines Matter for Pre-Approval Expiry
Pre-approval lasts three to six months depending on the lender. A house and land package typically takes six to twelve months from land settlement to handover, which means your pre-approval will expire during construction. That's not a problem if your income and circumstances stay the same, but it does mean the lender will reassess your application before final draw-down.
If you've changed rosters, taken parental leave, or reduced shifts, the lender may adjust your borrowing capacity. Lock in a fixed rate at pre-approval if you want certainty, or wait until closer to handover if you expect rates to drop. A split loan gives you both options: fix part of the loan now and leave the rest variable until construction completes.
How Progress Payments Work During Construction
The builder invoices the lender at each stage of construction. Typically that's five or six payments: slab down, frame up, lockup, fixing stage, and practical completion. The lender sends a valuer to confirm the stage is finished, then releases funds directly to the builder. You don't handle the payments, but you do start paying interest on each amount as it's drawn.
Some lenders let you make interest-only repayments during construction, which keeps costs down while you're managing rent and loan repayments simultaneously. Others require principal and interest from day one. If you're in a low deposit loan arrangement, the lender may insist on principal and interest to reduce risk.
In developments like Flagstone or Pimpama, where house and land packages are common, the build timeline depends on the builder's schedule and weather. Delays push handover back, which means you're paying interest on the land and any completed stages for longer than expected. Build a buffer into your budget for an extra two to three months beyond the builder's estimate.
Offset Accounts and Repayment Flexibility During Construction
Not all construction loans come with an offset account during the build phase. Some lenders activate the offset only after handover, while others let you link it from land settlement. If you're saving while the build progresses, an offset linked to the land loan reduces the interest you pay before construction even starts.
A portable loan lets you take the same interest rate and loan terms with you if you sell and purchase another property later. That's useful if your roster changes and you need to relocate, or if you decide to upgrade before you've built much equity. Check whether your lender allows portability on construction loans, because some treat them as separate products with different terms.
What QAS Employees Should Know Before Signing a Contract
House and land contracts are binding once signed. The developer's solicitor will push you to exchange quickly, especially in high-demand estates around South East Queensland. Don't sign until your finance is unconditionally approved and you've had a solicitor review the contract. Some contracts include sunset clauses that let the developer cancel if construction doesn't start within a certain period, and others slug you with additional fees if you withdraw.
If you're buying in a new estate, check whether the developer has completed stage one infrastructure. Roads, water, and power need to be connected before handover, and delays on the developer's side can push your settlement back by months. Your construction loan broker will flag these risks during pre-approval, but you need to ask the developer directly about council approvals and expected timelines.
How Your QAS Income Affects Borrowing Capacity for Packages
Lenders calculate your borrowing capacity based on net income after tax, HECS, and other commitments. For QAS employees, that includes your base salary plus the percentage of penalties and allowances the lender will accept. A paramedic on a roster that includes night shifts and weekend penalties will have higher serviceability than someone on a fixed day roster, even if their base pay is identical.
The total package price needs to sit within that borrowing capacity, including the deposit and any stamp duty or legal fees. Some QAS employees assume they can borrow more because the land loan is smaller, but lenders assess the full package value when calculating your loan to value ratio. If the package is $630,000 and you have a 10% deposit, you're borrowing $567,000, and that full amount needs to fit within your confirmed serviceability.
Call one of our team or book an appointment at a time that works for you. We'll assess your QAS income, confirm your borrowing capacity, and match you with a lender that underwrites construction loans the way your roster income actually works.
Frequently Asked Questions
How does a construction loan work for a house and land package?
You settle the land first and pay interest on that portion. The construction loan draws down in stages as the build progresses, so you're not servicing the full loan until handover. Most lenders release funds after a valuer certifies each stage is complete.
Can QAS employees avoid LMI on a house and land package?
Yes, select lenders offer LMI waivers to QAS employees borrowing up to 90% of the total package value. The waiver applies to the combined land and construction price, not just the land component.
What happens if my pre-approval expires during construction?
The lender will reassess your income and circumstances before final draw-down. If your roster or shifts have changed, your borrowing capacity may be adjusted. Locking in a rate at pre-approval gives you certainty, but you'll still need to requalify before handover.
Do I pay the full loan repayment during construction?
No, you only pay interest on the land loan and each construction draw as it's released. Full principal and interest repayments start after handover, though some lenders let you choose interest-only during the build.
What deposit do I need for a house and land package as a QAS employee?
Most lenders require 10% of the total package price. With an LMI waiver, you can borrow up to 90% without paying insurance. Genuine savings, gifted deposits, or equity from an existing property are all accepted depending on the lender.
