If you ever decide to purchase an established home, the entire amount of the loan will be drawn to pay for the property as soon as the contract is signed. You simply have to make monthly repayments until the loan is fully paid off.
If you opt to build a property, however, as in the case of house and land packages, this kind of setup is considered less than ideal. Amongst other things, you will have to pay for the loan on the finished property even though it is still under construction. To avoid having to pay a high interest rate, you might want to obtain a construction loan.