What is a land loan?
Land loan – the borrower receives a loan from the lender for the purchase of vacant land. The buyer purchases the land with the sole purpose of gaining land ownership.
Land loan – the borrower receives a loan from the lender for the purchase of vacant land. The buyer purchases the land with the sole purpose of gaining land ownership.
The price of the land is crucial because it will determine the deposit you will need to have for the purchase of land. The limit of borrowing will depend on the lender based on the size and price of the land.
Having an immediate intention to build can aid you in securing the loan for land. Lenders see this as a low risk than someone planning to build in the upcoming years of owning the land.
Lenders will review your income and employment history to ensure you're able to repay the loan with the interest amount.
To get a land loan, you will need to use the land for investment or owner-occupied purposes only. You can't use the land for farming or other activities.
A home and land package typically comes in two main options. The first offers a turnkey home on a specific block of land — ready to move into once completed. The second gives you the flexibility to purchase a vacant block of land and then build your home with your preferred builder, design, and inclusions.
One of the biggest advantages of a house and land package is the opportunity to customise your dream home to suit your lifestyle, budget, and preferences. Since the house and land are purchased together from the same developer or seller, the overall process is more streamlined and efficient.
Additionally, home and land packages can be a cost-effective choice, as you only pay stamp duty on the land value, not the construction costs — helping you save thousands. To ensure transparency and avoid unexpected costs, always request a detailed price breakdown from your builder.
Partnering with an experienced mortgage broker like Credific Finance can make securing your home and land package loan easier, helping you compare lenders, access competitive rates, and navigate the process with confidence.
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 land loan 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.
Vacant land loans are a specialized form of financing intended for the acquisition of land. Unlike conventional home mortgages, these loans cater specifically to properties that lack substantial buildings or structures. This financing option enables you to purchase a piece of land with plans to construct a residence or undertake development at a later stage..
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.
At Credific Finance, our knowledgeable mortgage brokers are there to assist you for the land and construction loan and help you with your construction loan application when you are prepared to begin your project. You can choose to merge the two loans into a single loan or maintain them as separate entities.
