Rural Lifestyle Home Loan
We’ve Got Real Experience in Rural Lending
Not sure if your rural hobby farm or the farm you are thinking about fits a banks criteria? Reach out and we can review and provide our knowledge to help.
Benefiting from our team's authentic experience in rural lending, we often assist clients who aspire to acquire a farm for recreational purposes or to reconnect with their agricultural roots.
We understand the difference between a hobby, weekend getaway and a fully operational enterprise geared towards generating farming income. Understanding these distinctions is crucial in the context of rural lending, as the financial requirements, risk profiles, and lending criteria may vary based on the nature of the agricultural venture. By recognising these differences, our team can tailor a strategy to meet the specific needs and goals of clients.
Lenders can complete what is commonly referred to as a “Rural Lifestyle” Home Loan for clients, looking to purchase a smaller/residential property however the treatment varies among lenders.
Two main considerations being:
Property Size
- Depending of the physical size of the property will determine the amount a lender will extend against the property and wether it is a Rual lifestyle property or be classified as a commercial Agri operation and reduce the extension amount.
Income from the farm
- How much income will the farm generate.
Other key things to consider are:
The property is (or can be) legally used for residential/rural residential purposes without specific permit requirements.
The property has the capacity to be used for residential purposes.
Power is connected to the property.
Water applicable to the area is connected to the property (ie tank, bore or town water).
The property is not a Rural Crown Leasehold.
The property is located close to (within a certain distance) from either a provincial city or primary regional town.
By navigating these considerations, we strive to provide tailored solutions for clients seeking rural lifestyle properties, leveraging our team's expertise in agriculture and rural lending.
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