Home Loan - Vacant Land


A loan to purchase vacant land is typically the first step towards building a residential property as a principal place of residence, a holiday home or as an investment to earn rental income. Buyers may also wish to speculate on the future value of the land with the view of a capital gain. Lenders may take a more conservative approach to land loans than other types of home loans, as land values are prone to fluctuations and can take longer to sell.


Vacant land can be a scarce and valuable resource. While location is a factor, buying land is generally a safe investment and capital gains can be enjoyed upon its development or resale in a rising market. Generally, or unless there are special circumstances, interest and/or other expenses relating to holding the land will not be tax deductible.


The loan is secured against the value of property being purchased and any other property offered as a top-up. This means, if the borrower defaults in their repayments and cannot repay the amount owing the lender may compel them to sell the property to settle the debt in full and call on any personal guarantees provided to support the loan.

Repayment terms

The borrower will be required to pay interest at a fixed or variable rate or a mix of the two on the principal outstanding and any agreed upfront, ongoing and exit charges.


To be matched with a Vacant Land Loan bidder, just follow our anonymous Home Loans/Vacant Land listing process.