Hi RudeE,
For a rural property with a land size of up to 60 hectares, you can generally borrow up to 80% of the property value.
Like all properties that banks use as "security" for your mortgage, banks are mainly concerned about the saleability / marketability of the property and they want to be able to easily sell the property should you no longer be able to make your mortgage repayments.
However, if you're intending to use the land for farming or any commercial use, you'll need to get an agribusiness loan instead, which usually comes with higher interest rates.
And banks aren’t into speculative investing either! The bank is making money from the interest you pay on your home loan and won’t see any potential gain that you may be predicting from the purchase.
We have nearly 40 different lenders to choose from so we will package your application with the right one so you have the best chance of getting approved and start living the life you want.
If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.
Cheers,
Otto
How much can I borrow for a 56 hectare rural property?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
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