What is a Land Loan?
A land loan is when someone borrows money from a lender to purchase a vacant block of land. This isn’t to be confused with a home-and-land package loan, which finances both the vacant land and the property you intend to build on it. For a land loan, the idea is that you will eventually build a house on it, but with no specific timeframe being determined. For now, you are purely seeking to gain ownership of a block of land.
Things to consider when looking at land loans
Typically, the land size (and therefore the price of the block) determines how much of a deposit you’ll need. Some lenders will loan you up to 95% of the property value, whereas larger lots might require a 20% deposit minimum.
What to expect regarding interest rates for your land loan
Most of the time, vacant land loan interest rates will be higher than that of a standard home loan. This is because land prices tend to fluctuate more than properties with existing homes on them, not to mention vacant land typically takes longer to sell. As such, lenders like to err on the side of caution by charging higher interest rates.
However, our team of expert mortgage brokers will take the time to understand your goals and ambitions for your vacant land, so that we can compare the market and find the most suitable land loan for your unique circumstances. We can also assist with off-the-plan home loans, guarantor home loans, owner-occupied loans and more.
Get in touch to arrange a one-on-one consultation today,
Hear from our happy customers
The team has been incredibly helpful guiding us through our home purchase. They’ve been incredibly patient, very responsive, and got us a great deal on our mortgage. On top of all that, their business model is geared toward socially responsible and ethically minded businesses/banks – something we really valued. It’s great to know our investment is doing something great for us, but also for others and the world. We would highly recommend this business and specifically Samuel, he’s just an absolute legend!
Austin
We met with the team and right from the start they listened to our goals and got us meeting with the relevant people. They were extremely proactive and found lenders to say yes when our current said no. Have used them many times and would recommend them to any small business owner who is trying to get ahead and set up an income for their future and future family. Look forward to continue to working with the whole team.
Andrea
I can’t recommend the team enough, they’re caring, savy, organise, responsive and very knowledgeable. The team really cares about you and they will always procure to get the best outcome for you. Thanks so much for your help BFG team, I can’t thank you enough.
Patrick
The team looked after myself and my Fiance when we got our home purchase. They were very down to earth, professional and really went above and beyond to help us every step of the way. They helped us, offered us support and made sure we get through things very smoothly. They answered all our questions and were always available to chat, was very proactive and always had the answers.
Reta
Highly recommended. The team is a highly professional group who helped us with a refinance. They were attentive, proactive, and knowledgeable in their service as they guided us through the transition.
Oliver
We are so happy to have been able to work with the Benevolence Financial Group Team on bringing our home ownership dreams to life. We had no idea what we were doing and whether we were even in any kind of position to purchase. They explained everything and patiently answered our many questions, talking us through every step of the process.
Jen
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