Borrowing to buy vacant land and then build later

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Borrowing to buy vacant land and then build later

Post by Otto Dargan »

Hi llama,

If you want to buy vacant land then the amount you can borrow depends on your personal borrowing power and situation as well as the block size of the land. You may be able to borrow up to:
  • 95% of the property value for a land size of up to 11 hectares (27.2 acres). However, note that some lenders would restrict your loan to 80% of the property value if it's larger than 2.2 hectares (5.4 acres).
  • 80% of the property value for a land size of up to 60 hectares (148.3 acres) although most lenders would likely decline your loan.
  • 70% of the property value for land sizes of over 60 hectares (148.3 acres) and all loans are assessed on a case by case basis.
  • 60% of the property value if it's a commercial farm. This will also be assessed on a case by case basis using rural farm guidelines.
  • If there’s a house on the land already, then you may be able to borrow 95% of the property value for properties up to 50 hectares in size.
Please note that most lenders will have trouble approving mortgages for vacant land if the land is over 2.2 hectares in size. We have access to several lenders who can consider larger blocks of land depending on the strength of your application.

You can also opt to speak with one of our vacant land and construction loan specialist mortgage brokers directly by calling 1300 889 743 or by completing our free online assessment form.

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

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