Unlock the secrets to house & land package loans

Buying a house and land package as a Border Force officer means you can lock in a brand-new home without competing at weekend auctions or waiting for settlements that clash with your roster.

The deposit and timing work differently to established homes. You typically need around 5% to 10% of the total contract value upfront, but the build timeline gives you breathing room between land settlement and house completion. That can work well if you are rotating through shifts or stationed interstate for training blocks.

First Home Guarantee Opens Up 5% Deposit Access

The First Home Guarantee allows eligible Border Force officers to buy with a 5% deposit and no Lenders Mortgage Insurance on new builds valued up to the regional or metro cap for your state. The scheme was expanded massively from October 2025 with no income limits and no place caps, so long as you meet the citizenship and first home buyer criteria.

For a house and land package, this means you are only finding 5% of the combined land and construction contract at the time you apply, not the full amount upfront. Because lenders typically settle the land first and then draw down construction funds progressively, you are not borrowing the full loan amount on day one. That structure can reduce early interest costs compared to an established property purchase.

State Grants Stack with Federal Schemes

Most states offer cash grants and stamp duty concessions for new homes, and you can combine them with the First Home Guarantee. The numbers vary significantly depending on where you are buying.

If you are purchasing in Queensland before 30 June 2026, eligible buyers can claim up to $30,000 toward a new home valued under $750,000, plus a full stamp duty concession that can bring duty to nil. In New South Wales, the First Home Owner Grant is $10,000 for new homes up to $600,000 or house and land packages up to $750,000, and you may qualify for full stamp duty exemption under $800,000. Victoria offers $10,000 for new homes up to $750,000 and no stamp duty up to $600,000, with a reduced rate to $750,000.

South Australia has abolished stamp duty for all first home buyers purchasing new homes, regardless of property value. Western Australia increased its grant property cap to $800,000 and offers no stamp duty on dwellings purchased pre-construction up to that threshold. The Northern Territory's HomeGrown Territory Grant is $50,000 for new builds, running until 30 September 2026, with no cap on purchase price.

Because several of these grants and concessions have expiry dates around mid-2026, it is worth confirming current eligibility with a broker or your state revenue office if you are signing contracts soon.

How the Two-Stage Settlement Works

House and land packages settle in two stages: land first, then the house once construction is complete. Your lender will assess the total contract value upfront and approve the full loan, but funds are released progressively.

At land settlement, you draw down the portion covering the land cost plus any associated fees. You start making repayments on that amount immediately, but because the house has not been built yet, you are only servicing a fraction of the total loan. During construction, the lender releases funds at set milestones such as slab, frame, lock-up, and completion. Most lenders let you make interest-only payments during the build, which keeps repayments lower until the house is finished and you move in.

Consider a Border Force officer purchasing a house and land package where the land component is $200,000 and the construction contract is $400,000. At land settlement, the officer draws down $200,000 and begins repaying interest on that portion. Over the following months, as the builder hits each stage, the lender releases additional funds. If the build takes eight months and the officer is paying interest only during that time, repayments stay manageable even while working compressed rosters or night shifts. Once the house is complete and the final draw is made, the loan converts to principal and interest repayments on the full $600,000.

Interest Rate Structures That Suit Shift Work

Border Force rosters do not always leave room to monitor rate movements or refinance on short notice. A split loan structure can give you some certainty without locking everything down.

You might fix a portion of the loan for two or three years to cover core repayments, then leave the rest on a variable rate with an offset account. That way, if you pick up overtime or allowances during a busy posting, you can park the extra income in offset and reduce interest without penalty. If rates drop, the variable portion benefits immediately.

Some lenders also offer construction loan products that let you lock in a fixed rate during the build, so you are not exposed to multiple rate rises while the house is going up. That can be useful if you are buying in a rising rate environment and want to know exactly what your repayments will be once you move in.

Pre-Approval Timing and Contract Clauses

Getting pre-approval before you sign a house and land contract is critical. Developers and builders often require a finance clause deadline of 14 to 21 days, and if your lender has not formally approved the loan by then, you risk losing your deposit.

Border Force officers can sometimes face delays if lenders are unfamiliar with the pay structure, particularly around overtime, allowances, and rostered days off. A broker who works with law enforcement and Border Force regularly will know which lenders accept 100% of allowances and which ones shade overtime income. That can mean the difference between conditional approval in three days or a two-week back-and-forth over payslips.

If you are currently posted interstate or working a compressed roster, make sure the broker can handle document lodgement and lender contact on your behalf. You should not need to take a day off to chase a valuation or sign a variation.

Choosing the Right Developer and Build Contract

Not all house and land packages are structured the same way. Some developers require a holding deposit and then a second deposit at land settlement. Others roll both into a single upfront payment. The timing of those payments affects how much you need in genuine savings versus what you can cover with a gift or the First Home Super Saver Scheme.

The build contract should specify a fixed price and a clear timeline with penalty clauses if the builder runs over. Some contracts allow the builder to claim extensions for weather or supply delays, which can push out your completion date and leave you paying rent longer than planned. If you are relocating for a new posting or timing the purchase around a lease expiry, those delays can create genuine hardship.

Make sure the contract includes progress inspection rights and a retention clause that holds back final payment until defects are resolved. That gives you leverage if there are issues at handover.

Using the First Home Super Saver Scheme

The First Home Super Saver Scheme lets you contribute up to $15,000 per financial year into superannuation, taxed at 15% instead of your marginal rate, and withdraw up to $50,000 total for your first home deposit. For a Border Force officer on a higher marginal tax rate, that can mean significant savings compared to a standard bank account.

You can make voluntary concessional contributions through salary sacrifice, then apply to withdraw the funds once you have a signed contract or are ready to make an offer. The withdrawal is taxed at your marginal rate minus a 30% offset, which still leaves you ahead compared to saving outside super.

Because house and land packages settle in two stages, you can time the FHSS withdrawal to land settlement rather than needing the full amount upfront. That flexibility can help if you are still building savings while the contract is being drawn up.

What Lenders Look for in a Border Force Application

Lenders assess your application based on base salary plus any allowances and overtime they are willing to include. Border Force officers typically receive shift allowances, remote location allowances, and overtime, but not all lenders treat those the same way.

Some lenders will accept 100% of allowances if they are ongoing and appear consistently on payslips for three months. Others will shade overtime to 80% or exclude it entirely if it is irregular. A broker familiar with home loans for Border Force officers will know which lenders are most favourable and can structure the application to maximise your borrowing capacity without inflating income.

You will also need to show genuine savings, which means funds held in your own name for at least three months. If you are using a gifted deposit from family, some lenders require a signed declaration that the money does not need to be repaid. Others will not accept gifted funds under the First Home Guarantee and require the full 5% to come from your own savings or the FHSS.

Offset Accounts and Redraw During the Build

An offset account attached to your variable loan portion can reduce interest from day one, but not all construction loan products offer offset during the build phase. Some lenders only activate offset once the house is complete and the loan converts to principal and interest.

If offset is not available during construction, check whether the loan offers redraw. That lets you make extra repayments and pull them back out if needed, though redraw is not as flexible as offset because it requires a formal request and may have minimum withdrawal amounts.

For a Border Force officer working irregular hours, the ability to deposit lump sums from overtime or allowances without locking them away permanently can make a material difference to interest costs over the build period.

If you are buying your first home and want to know how your roster, allowances, and deposit options fit with current lender policies, call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions