How much can I realistically borrow with an acreage loan?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: How much can I realistically borrow with an acreage loan?

Post by Otto Dargan »

Hello Phyllis. Welcome to the forums.

Apart from location, the first thing most lenders consider with a residentialacreage loan is the size of the land.

Land size will have a direct impact on the Loan to Value Ratio (LVR) that the lender will approve so, in most cases:

Up to 10 ha (hectares): You can borrow up to 95% of the property value.
Up to 50 ha: You can borrow up to 90% of the property value if you’re close to a major town, otherwise, you can borrow 80% of the property value.

Speak with one of our specialist mortgage brokers by calling 1300 889 743 or by filling in our free assessment form to find out if you qualify for a residential acreage loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How much can I realistically borrow with an acreage loan?

Post by Otto Dargan »

Hi Phyllis,

Apart from land size, banks usually look at:
  • Location: Try the postcode calculator to find out if there are any potential lending restrictions for the location you’re looking to purchase in.
  • Easy access: Banks prefer properties with easy all-weather roads. Dirt roads may be acceptable as long as they’re in good condition.
  • Services connected: Lenders prefer properties with connected electricity, water, and sewerage connections. Partially-serviced acreage may be accepted with some lenders.
  • Zoning: Banks look at zoning of the property as well. A good rule of thumb is that if the land you’re buying is subject to GST then it would be considered as a commercial property by the banks.
Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How much can I realistically borrow with an acreage loan?

Post by Otto Dargan »

Hi Phyllis,

I’m afraid future home improvement costs cannot be added on top of your residential acreage loan.

You may have to look for a separate home improvement or a construction loan for that.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a residential acreage loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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