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Some people prefer to buy a vacant block of land released for sale in new housing estates or sub-divisions and then have a home built on the vacant land according to their plans and requirements.

How do Lenders/Credit Providers treat Vacant Land Loans?

Most lenders/credit providers treat it like any standard or normal loan. So when you offer vacant land as security you will be able to get a standard or normal loan. However, the lenders/credit providers will require that:

>> The size of the block of land does not exceed a certain acreage ( i.e. this will depend on the policy of each lender/credit provider)

>> The land is preferable inside major cities and regional centers as well as rural vacant land in lifestyle locations

>> The land must have direct access using all-weather road. Dirt roads are acceptable as long as they are well maintained, and the property can be accessed by a standard vehicle, not a 4WD

>> The land must be within the range to be connected to the electricity grid without excessive costs

>> Town water and sewerage services are not required as many Australian properties have tank water or septic tanks instead

>> Fully serviced and partially serviced blocks are both acceptable, however some lenders/credit providers will not approve a loan for more than 80% of the value of the property if you are unable to connect town water

>> The land can be zoned rural, rural residential or the equivalent for your state or territory

>> The maximum Loan to Value Ratio (LVR) is 97%. Most lenders will lend you up to 90% LVR on standalone vacant land as security

Loan Products Available for Vacant Land Loans

You must contact a reputed brokerage firm that has access to many lenders/credit providers. Its professionally qualified and expert finance brokers will assist you in choosing any of the following products:

>> Standard Variable Loan

>> Fixed Rate Home Loan

>> Basic Home Loan

>> 100% Offset Loan

>> Guarantor Home Loan

>> Line Of Credit Loan

>> Low Doc Home loan

>> Non-Genuine Savings Loan

>> Refinance Home Loan

>> Bad Credit Loan

>> Construction Loans

Do I have to Build or Construct on Vacant Land?

Some lenders/credit providers will take the land as security with no need to construct on the property in the short or long term. However, some lenders/credit providers will require you to build a house on the property (e.g. within 6-12 months of settlement). When choosing a lender/credit provider you should consider this aspect as it could force you to refinance or change lenders within 12 months of settlement if you have no intention of building on it.

Can I get a Low Doc Vacant Land Loan?

Yes, you can get a low doc vacant land loan with a specialised lender/credit provider. However, each lender/credit provider will use different low doc assessment methods, which can include any of the following:

>> With BAS Low Doc

>> No BAS Low Doc

>> Accountants Letter Low Doc

>> Trading Accounts Low Doc

>> Income Declaration Low Doc

Can I Get Pre-Approval on Vacant Land Loans?

Yes, an expert finance broker can arrange pre-approval for you. You will have the peace of mind knowing that:

>> You have a clear picture of what your borrowing limits are

>> Your finance request has already been pre-approved, and you will know the conditions of your pre-approval

>> You have the upper hand when negotiating the sale price of your vacant block of land with the vendor, real estate agents, etc.

So, these are the reasons why getting pre-approval will be beneficial for you. The current low-interest rates have never made it as easy as now for you get a vacant land loan. So, do not wait anymore. The time is NOW!