Land loans

Financial institutions can provide finance to assist you purchase land with the expectation that the land will be improved within a set time frame by the construction of a dwelling for personal or personal investment use.

 

Most lenders will lend up to 90% of the valuation of the land, although some will lend up to 95% in certain circumstances.

In most instances the lender will provide funds based on the value of the land only, however, if your intention is to improve the land by way of construction of a dwelling, the lender may look at the value on an "on completion" basis. This may include the vale of the land plus the cost of construction but can vary from lender to lender.

 

Some of the Common features available are:

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  Construction of a dwelling required within a set time frame (6 months to 5yrs)
  
  
  
  


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  Loans against vacant land value
  
  
  
  


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  Loan restrictions based on maximum land size
  
  
  
  


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  Loans restrictions based on zoning. ie: Residential, Rural or Residential/Rural