Best Lender for Land Only

SupeNintendoChalmers on 19/05/2021 - 13:43
Last edited 20/05/2021 - 05:32 by 1 other user

Hi,

My better half and I want to purchase a block of land to essentially sit on it and in 15 years time build a dual occupancy.

We have very little debt, and more than the 10% required of the purchase price, however we've found it hard to find a lender that would service us, pretty much the ones with good rates like UBank etc want it to either be an existing house, or a 'to be built' house and land package.

Would love to know what financial institutions are good to work with regarding land only types of purchases?

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  dasher86 on 19/05/2021 - 13:49

  +4

  go see a mortgage broker they have expertise in this sort of thing.

  • 

    NatoTomato on 19/05/2021 - 14:39

    +1

    They usually don't even charge, as they make their money from the bank whom you service your loan to.

  • 

    Indomietable on 19/05/2021 - 21:06

    +1

    This! Make sure you get good mortgage broker with experience + knowledge and in tune with property game. Most brokers are paper pushers so select carefully.

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  deeznuts1234 on 19/05/2021 - 14:26

  +2

  Smaller lenders only like to come to the party once there is a house on the land as it is easier for them to value as it is tangible as well as less messing around as they don't usually have the same man power to handle proceedings like the bigger banks do. That's why you'll usually only find bigger lenders to service your land loan (big 4 banks, etc.). I have gotten a land loan from CBA @ 2.69% variable for reference.

  Also, I assume you've done your research but most new estates require you to build within a certain time frame (few years max) when purchasing their land.

  • 

    SupeNintendoChalmers on 19/05/2021 - 15:10

    The land we're looking is in an established area and has been for the past 40 years, thanks will look at Big 4

    • 

      deeznuts1234 on 19/05/2021 - 15:37

      No worries, a mortgage broker should definitely be able to get better rates even with the Big 4 for you.

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  Godric on 19/05/2021 - 19:18

  Depends

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  mr fox on 19/05/2021 - 22:01

  Must be a great piece of land for it to make financial sense.

  • 

    SupeNintendoChalmers on 20/05/2021 - 07:58

    I think so, however I would sit on it for around 10 years and eventually build a dual-oc, rent one and sell the other.

    Well that's the hope.

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  Dundundunnnn on 19/05/2021 - 22:28

  Commonwealth and St George were the only two I found willing to do land only.

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  GuyfromMelbourne on 01/06/2021 - 02:25

  I think the title should be the lender that allows land banking. Because not many do. Normally a bank would want you build or have plans to do so in a year's time.