What is Land Loan?

A land loan is used to finance the purchase of a tract of land. Land loans are a very small slice of the market and tend to be riskier for lenders than mortgage loans Land Loan should be available to everyone, regardless of whether you require a commercial, residential or rural property financing scheme to assist you in the future.

Loan on a vacant land allows you to purchase land on which you intend to build a home within three years or within twelve months if you take out an Investment Land Loan.

If you do not build straightaway, you can buy vacant land or acreage and hold on to it for up to 30 years on our variable rate.

Land Loan Suits you:
  • If you want to purchase but not planning to build immediately.
  • For Investment and Retirement building a property portfolio.
  • Are considering flexible extra repayments to redraw or pay interest only.
How much can you borrow for different block sizes?

Less than 2.2 hectares (5.4 acres): Up to 95% of the property value.

Less than 11 hectares (27.2 acres): Up to 95% of the property value (note that some lenders would restrict your loan to 80% of the property value).

Farm Loan

Commercial farms: Up to 60% of the property value (all loans are assessed on a case by case basis using rural farm guidelines).

If there is a house on the block: Up to 95% of the property value for properties up to 50 hectares in size.

Note: 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.