What do banks think about hobby farms?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: What do banks think about hobby farms?

Post by Otto Dargan »

Hey Megan,

Welcome to the forums.

When it comes to hobby farm loans, lenders will typically allow you to borrow 90% of the property value or 90% LVR (Loan To Value Ratio).

However, if the location is considered a restricted postcode, your borrowing power may be restricted to 80% LVR.

Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will let you know which lenders have the most flexible policy when it comes to acreage loans.

Check out the for more details.


Cheers,
Otto
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: What do banks think about hobby farms?

Post by Otto Dargan »

Hello Megan,


Excellent question.

Truth be told, there isn’t really a fixed barrier that separates hobby farms from commercial farms.

We would suggest you send us the link to the property’s listing in a real estate website so that our team can assess it. Only then can we provide you with accurate information.

Some of the factors responsible for separating commercial farms from hobby farms could be whether:
- The land has large crop plantations.
- The property has cattle and how many heads of cattle there are.
- There is a residential property on the land.
- There are otherwise signs of large scale agricultural activities.



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

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