Why Land Loans Can Be Difficult To Source And Secure
Buying land can be a risky business. If the housing market is flat or falling, land can be difficult to sell: far more so than an established house. From the lender’s point of view, if the borrower defaults, it is very difficult to recoup the loan from vacant land. This is especially true of land in rural areas. This is why many lenders refuse to offer land loans, and of those that do, the majority won’t extend more than 80% of land value.
- Building Loans Australia has access to land loans that are not restricted by postcode, and offer financing for up to 123 acres (the usual limit is 2 acres with most of the banks that do offer land loans).
- Even better, we have access to 95% land loans. That means you get to put down far less of your cash as a deposit, and will have money available to help fund the next stage of development (as well as ensure contingency funding is available).
Use Our Expertise And Our Connections
Most lenders won’t lend up to 95% on land, but our experience and knowledge of the market enable us to source these valuable mortgage deals as well as operate in several land loan niches, such as:
- Vacant land loans with no requirement to build within a certain time frame
- Rural land loans (must have a sealed road leading to land)
- Acreage land loans up to 123 acres (must not be income producing, hobby farm okay case by case)
- Investment land loans
- Residential land loans
Other Benefits Of Using Building Loans Australia For Your Land Loan Includes:
- We’ll search and negotiate the most competitive loans, often with a discount from standard variable rates
- We have access to lenders who include discounted mortgage insurance rates
- Some of our lenders don’t charge any ongoing fees for land loans
- We’ll discuss all options with you before finding the very best land loan for you
Don’t Meet The Criteria For A Land Loan? Don’t Worry!
Many would‐be land buyers have been told by other agencies that they don’t meet the standard criteria needed to secure a land loan. These are:
- 5% in savings (cash or equity). (We can use capital that cannot be immediately accessed in our calculations)
- An employment history that includes being in your current job for at least 12 months
- A clean credit record, with no defaults or bankruptcies
- Strong borrowing capacity
Even if you don’t satisfy all these criteria, Building Loans Australia work with lenders that provide exceptions to these rules and still offer 95% land loans.
If you have found the perfect land for your house building project, but want to save as much of your capital as possible to spend on the build itself, we’ll find the most competitive lender with the cheapest rates and keenest criteria. All you have to do is contact Building Loans Australia today.