Re: What do banks look for when assessing an acreage loan application?
Posted: Mon Feb 04, 2019 3:41 pm
Hello Arlo. Welcome to the forums.
After location and postcode restrictions, lenders will consider land size when assessing your rural property loan application
Cheers,
After location and postcode restrictions, lenders will consider land size when assessing your rural property loan application
- Land size up to 10 ha: You can borrow up to 95% of the property value.
- Up to 50 ha: Up to 90% of the property value if you’re close to a major town, otherwise you will be limited to 80% of the property value.
- Up to 60 ha: 80% of the property value.
- Over 100 ha: At this size, banks will often see it as “income-producing” even if that isn’t your purpose. Speak to us about your intent and we can present a case to the bank.
- Commercial farms:For commercial farms, loans are usually limited to 60% of the property value.
Cheers,