Hi chapati and welcome to the forum.
You can generally borrow up to 95% of the vacant land value for the land size of up to 27.2 acres or 11 hectares. Any land size larger than 60 hectares and you can borrow up to 80% of the property value.
So you will need to have $70k as your deposit to get the mortgage. We can try to change the situation though by adding in a guarantor or if you have a strong income then we can also go for a personal loan for the remaining portion of your deposit.
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. The borrowing will also be affected by the fact whether you’ll earn any income from the property or not i.e. you're using it as a farming business
If you'd like to discuss this with one of our vacant land mortgage specialists directly then you can call 1300 889 743or fill in our free online assessment form.
Cheers,
How much can I borrow to buy a vacant land?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How much can I borrow to buy a vacant land?
Hi chapati ,
If you are not doing any income producing activities on the land, then you could still borrow 80% of the land value. It’s usually called a url=https://www.homeloanexperts.com.au/prop ... farm-loan/]‘hobby farm’[/url], and the farm is designed for personal fulfillment or self-sustainability rather than for the purposes of turning a profit from a commercial basis.
Usually, lenders consider a rural property as income producing where:
Please call us on 1300 889 743 or enquire online and one of our mortgage brokers who specialises in hobby farms can help you to apply for a home loan.
Cheers,
If you are not doing any income producing activities on the land, then you could still borrow 80% of the land value. It’s usually called a url=https://www.homeloanexperts.com.au/prop ... farm-loan/]‘hobby farm’[/url], and the farm is designed for personal fulfillment or self-sustainability rather than for the purposes of turning a profit from a commercial basis.
Usually, lenders consider a rural property as income producing where:
- Turnover from the business activity is at least $20,000.
- The business has produced a taxable profit in 3 of the last 5 years including the current year.
- The value of the property carrying on a business is at least $500,000.
Please call us on 1300 889 743 or enquire online and one of our mortgage brokers who specialises in hobby farms can help you to apply for a home loan.
Cheers,