Hello Aditi. Welcome to the forums.
Lenders will assess the location of the property being offered as security when assessing a hobby farm
loan applying stricter lending policies and higher interest rates for high-risk locations.
This generally means that they will often limit the maximum available Loan to Value Ratio (LVR)
and the loan amount you can borrow.
You can use our postcode calculator
to find out if the property is considered as high risk by the bank.
After location, lenders will consider the size of the land.
The thing is not all lenders will approve an acreage loan if the block of land is more than 10 hectares. Those that do will generally limit your LVR to 90% of the property value for land sizes between 10 and 50 hectares (ha).
Our mortgage brokers specialise in acreage loans.
Give us a call on 1300 889 743
or fill in our free assessment form
to find out if you qualify for a lifestyle block loan.