Loans on a block of land

Loan on a block of 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.

With no pressure to build straightaway, you can buy vacant land or acreage and hold on to it for up to 30 years on our variable rate. And with no ongoing fees, you decide between minimum interest only repayments or fast-track with extra repayments without penalty.

Not only do you have the flexibility to pay off your land loan sooner, you can also redraw any extra repayments easily and without fees.

Land Loan Suits you:

  1. If you want to purchase but not planning to build immediately.
  2. For Investment and Retirement building a property portfolio.
  3. Are considering flexible extra repayments to redraw or pay interest only.

Benefits you get:

  1. Up to 30 years on our Land Loan variable rate.
  2. Up to 5 years of interest only repayments.
  3. Minimum amount of $20,000
  4. Borrow up to 95% of property value which can be between $40,000 to $600,000.
  5. Enjoy a variable interest rate for your choice of term, up to 30 years
  6. Save with a $0 monthly account fee and no extra repayment fees or limits.

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).

Less than 60 hectares (148.3 acres): Up to 80% of the property value (note that most lenders would decline your loan).

Over 60 hectares (148.3 acres): Up to 70% of the property value (all loans are assessed on a case by case basis).

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.

The vacant land purchase can be used to increase the equity in your existing home or investment property and while, redraw facilities are usually not available on construction loans, they generally are on land loans.