Rural property loans for acreage and lifestyle blocks
Dreaming of acreage or a lifestyle block? Our Bankstown team will match your rural purchase to a lender that's comfortable with the land.
Chasing more space? Let's find a lender who's comfortable with the land.
A few acres, some fresh air and room to breathe - it's a tempting move. But rural and lifestyle properties are assessed differently from a house in the suburbs, and not every lender is keen.
At Infinity Mortgage Brokers, we help buyers from Bankstown and South West Sydney find finance for acreage and lifestyle property, wherever the land is.
How are rural property loans different?
It mostly comes down to the land. Lenders will look at:
- The size of the property
- How the land is zoned
- Whether it earns income from farming
- Access, water and services
- How easy it would be to resell
- The deposit needed, which rises for larger properties
Smaller lifestyle blocks are often treated much like a normal home. Larger or working properties fall under different rules.
Why does the lender matter so much?
Because their limits vary widely. One lender might be comfortable with the property, while another won't touch it.
Finding that out after you've made an offer is stressful and expensive. We check the property against lender policy first, so you know where you stand.
How Infinity Mortgage Brokers can help
We make rural finance straightforward. Here's what you get with us:
- The property checked against lender policy before you offer
- Access to 40+ lenders with different land size limits
- A clear answer on the deposit you'll need
- Extra time built in for rural valuations
- A local Bankstown broker managing it all for you
Tell us about the property and we'll tell you what's possible.
Found your patch of paradise?
Let's chat! Schedule a free introductory call with us now.
How does a rural property loan differ from a standard home loan?
A rural property loan differs from a standard home loan because of the land. Lenders treat small acreage much like an ordinary home, but larger holdings fall under separate policy.
Small acreage and lifestyle blocks
These are assessed on terms close to those for an ordinary house.
Larger holdings and farms
Any property that earns income from farming attracts lower loan to value limits and fewer lenders.
What affects appetite
Zoning, land size, water supply, access and services all affect lender appetite.
Why lender choice matters
A property one lender handles easily may be declined by the next, so the land has to be matched to the lender first.
Arranged from Bankstown
If you live around Bankstown and are buying acreage further afield, Infinity Mortgage Brokers can arrange the loan from here. Book a free chat before you make an offer.
How many hectares can I buy on a standard home loan before rural lending applies?
Many lenders apply standard home loan terms to rural property up to a set land size, often about 10 hectares. Some stop at less.
Beyond the limit
The maximum loan to value ratio falls and the choice of lenders narrows.
Larger or working properties
A block that is larger again, or used commercially for agriculture, is assessed under different rules with a bigger deposit.
Why it varies
Each lender sets its own land size limits and postcode rules.
What to find out
Ask the agent for the land size, zoning and any income the property earns. Those three details decide which rules apply.
Checking the property
Infinity Mortgage Brokers establishes where the property sits before South West Sydney buyers make an offer. Book a free chat with the details.
What deposit is required for a rural property loan?
A rural property loan on a small lifestyle block needs about the same deposit as a house in town. Larger properties need more.
Small blocks
Where the property qualifies for residential terms, standard deposit rules apply.
Larger properties
Lenders lend a smaller share of the value, so you need a bigger deposit.
LMI
LMI may not be available to bridge the gap on larger holdings.
What sets the figure
The land size, the zoning and how the land is used set the figure.
A firm number
Infinity Mortgage Brokers in Bankstown checks the property against lender policy and gives you a firm number. See our guide to how much deposit you need to buy a house.
Does a rural property loan take longer to approve?
A rural property loan can take longer to approve than a standard home loan. Fewer valuers cover rural areas, and lenders ask more questions.
Valuations
Valuations take longer to book outside metropolitan areas, and the valuer may need more time on site.
Extra questions
Lenders tend to ask about access, water, zoning and services. Having those answers ready from the agent saves time.
What to do
Have the property assessed early, and agree a settlement date that allows for the extra time.
Keeping it moving
Infinity Mortgage Brokers raises likely issues before you commit and chooses a lender comfortable with the property type. South West Sydney buyers can read our guide to home loan approval times.
