Lending Criteria for Buying Land

Purchasing vacant land

Any security address within 50km of city boundaries may be funded with as little as 20% LVR within town city boundaries (50Km as a guide).  To meet criteria, they must have connected utilities (power, phone, sewage etc.) or be available for connection.  The property must have public access to roads, and loans against vacant land are available provided that it is intended to erect a dwelling within 5 years.  Borrowers can demonstrate the financial capacity to accommodate this.

Lifestyle Properties

Properties outside subdivisions or urban zones (typically between 2 ha and 10 hectares) are considered lifestyle properties. Funding for lifestyle may range from 20 % to 50% deposit depending on its locality.

The value of any non-residential improvements (such as farm or horticulture related) will be deducted and the LVR will be calculated on the net value.  The property must still be near a major metropolitan or provincial centre (approximately 50kms) and have comparable sales nearby. Income from the property cannot be included for serviceability purposes.

Purchasing land with Low Deposit

If you do not have sufficient deposit to purchase the land outright, speak to NewBuild as we can combine the land purchase with the build so you can still fund both with as little as 5% total deposit.