Hello Edmure. Welcome to the forums.
Typically, lenders are reluctant to accept acreage/lifestyle properties
that are bigger than 100 ha due to its limited marketability potential. Land sizes this big are considered on a case by case basis by only a couple of our lenders.
Lenders will consider the following when considering your hobby farm loan:
- Loan to value ratio (LVR): Lenders may limit the maximum LVR you can borrow at 50% of the property value for land sizes exceeding 100 ha.
- Property location: Remote locations are simply difficult to finance due to their limited market appeal. You can try our postcode calculator to find out if there are any potential lending restrictions to the location.
- Access requirement: There must be a road or a well-maintained dirt road as an access point to the house and the property.
- Utilities connected: Power and water must be connected. Solar, tank, bore or town water are accepted (some exceptions).
At this size, it is considered income producing even if that isn’t your purpose. Give us a call on 1300 889 743
or fill in our free assessment form
so we can present a strong case to the bank of your intent and avoid the high-interest rate of a commercial loan.