Looking for a 20 acre vacant land loan

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Looking for a 20 acre vacant land loan

Post by Otto Dargan »

Hello Makaveli. Welcome to the forums.

Yes, for a 20-acre vacant land loan, there are few lenders on our panel that can lend:
  • Up to 95% of the property value for vacant land less than 11 hectares (27.2 acres).
  • Up to 100% of the property value with a guarantor loan which is available with select lenders.
Banks are typically conservative when assessing vacant land loans as the marketability of the property is limited. They are also wary of property speculating investing. Whereas, if there is a house on the land, then the approval process is much simpler.

Apart from land size, each lender has its own requirements such as:
  • Utility requirement: Most require electricity and town water. Some accepted bore or tank water, solar panels etc.
  • Access requirement: Has to have a sealed or gravel road access to the property.
  • Zoning: For most the zoning has to zoned residential, rural residential or rural. Other zones such as mixed-use zones are considered on a case by case basis.
  • Postcode: Each lender has its own postcode restriction.
  • Intention to build: If you’re not planning on building in a year or less, lenders may consider it speculative investing and decline your loan.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a vacant land loan.

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: Looking for a 20 acre vacant land loan

Post by Otto Dargan »

Hi Makaveli,

The postcode 2580 is considered a medium risk location. It means that depending on the lender’s policy they may accept it or not. Typically, lenders are willing to lend up to 70%-80% of the property price so, you’ll require 20%-30% as a deposit plus costs involved to complete the purchase.

One of our lenders has no postcode restriction and will assess every loan on a case by case basis.

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: Looking for a 20 acre vacant land loan

Post by Otto Dargan »

Hi Makaveli,

Not necessarily, if the property location and the security itself is acceptable to lenders, you’re looking at paying the same interest applicable as those buying an established property.

You can check out the best interest rate offers from our panel of lenders. Currently, interest rates are at record lows with RBA’s back to back cash rate cuts. The key is to apply with the right lender to take advantage of historically low rates.

Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a vacant land loan with competitive interest rates.

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

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