The zoning of your land—whether residential, rural, or mixed-use—directly impacts lender policies, deposit requirements, and borrowing limits. Land that is well-serviced with roads, utilities, and future development plans generally attracts stronger lending support.
Land loans often require a higher deposit. Residential land may allow 80–95% LVR. Before committing to a block, it's important to understand your borrowing capacity and the deposit needed to meet lender criteria.
Your building timeline shapes the type of loan you’ll need. Planning to build soon? You may progress to a construction loan. Building later? A land-only loan offers more flexibility. Some lenders set deadlines for when construction must begin, so aligning your plans early can avoid delays.
Lenders place strong emphasis on land valuation. Factors such as comparable sales, infrastructure access, local amenities, and future development influence both your valuation and long-term investment potential. Choosing a land parcel in a growth area can significantly improve your financial outlook.
Ideal for buyers who want to secure a block of land without immediate plans to build.
✔ Features include: Flexible LVR options, Competitive variable or fixed rates , Interest-only or principal-and-interest, Low-deposit options with certain lenders
Perfect for buyers working with a builder and developer simultaneously.
✔ Benefits: Streamlined approvals, Progress (construction) payments, Better interest management, Increased lending confidence for developers.
For buyers wanting to purchase land as part of their investment strategy.
✔ Why investors choose land: Growth potential in high-demand corridors, Opportunity to develop later, Strategic long-term capital appreciation
Buying land as a first home buyer? Partner with a trusted mortgage broker to make your journey smooth and stress-free. At Credific Finance, we specialise in helping first home buyers secure the right loan for land purchase for their goals — whether you’re planning to build now or in the future. Our expert mortgage brokers compare multiple lenders, guide you through deposit and eligibility requirements, and help you access available first home buyer grants. With professional advice and tailored loan solutions, you can buy your land with confidence and start your homeownership journey the right way.
A land loan is a mortgage specifically for purchasing a block of land, whether for investment, future construction, or a house and land package. Unlike standard home loans, lenders consider zoning, size, and services when approving the loan.
Individuals often pursue vacant land loans for various purposes:
Yes, if you are purchasing land without a building contract, you are eligible to apply for a standard home loan. Once you are prepared to commence construction, please contact us for assistance. In the case of acquiring a house and land package, a construction loan is available. The initial drawdown will be allocated for the land purchase, followed by subsequent drawdowns to finance the various stages of construction.
The timeframe for obtaining approval for a vacant land loan can differ depending on the lender and the intricacy of your application. Typically, this process may take few days to weeks depending on the Lender assessment timeframe. Having all necessary documentation in order and presenting a well-defined plan for the land can facilitate a quicker approval.
Yes. You can take a land-only loan now and organise a construction loan later. Some lenders have maximum timeframes for building, so planning ahead is essential.
Generally, yes. Land loans are considered higher risk, so interest rates may be slightly higher than standard home loans. Credific Finance helps you compare competitive land loan rates across multiple lenders.
Vacant land loans – for land only purchases
House and land package loans – combining land purchase and construction
Investment land loans – for long-term capital growth or development
Consider:
Stamp duty
Legal/conveyancing fees
Land surveys or soil tests
Council and registration fees
We provide end-to-end support:
Compare competitive land loan rates
Access multiple lenders
Guide you through approval, valuation, and settlement
Offer personalised advice for first home buyers and investors
Deposit requirements vary:
Residential land: typically 20–25%
Rural or large acreage: 30–40%
Lenders may offer higher LVR options for well-located, serviced land.
