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The dream of owning a few acres - whether for horses, a veggie garden, or simply space - is increasingly popular. But financing these properties is more complex than buying a standard suburban block. Lenders treat acreage and hobby farms differently because of higher perceived ri
It depends on the land size and zoning. Properties under 5 hectares zoned "rural residential" can typically get standard home loans from most banks. Above 5 hectares, you'll likely need a regional bank or specialist lender, and terms become less favourable with larger properties.
Most mainstream lenders cap at 5–15 hectares for standard residential lending. Beyond that, you enter specialist or agribusiness lending territory. Regional banks typically have higher thresholds than big-4 banks. The exact limit varies by lender, zoning, and location.
LMI (Lenders Mortgage Insurance) is generally available for rural-residential-zoned properties under 5 hectares. Above that, LMI is typically not available, meaning you'll need at least a 20% deposit. Some insurers will consider properties up to 10 hectares on a case-by-case basis.
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