Rural Lifestyle Homes

Looking for Space to Breathe? Here's What You Need to Know About Financing Larger Blocks

Many Australians dream of owning a few acres, somewhere the kids can play and explore, where you might keep a horse or two, or simply enjoy the privacy and peace of a larger block of land.

However, financing these properties can be challenging. Depending on the lender, blocks over 10 or 20 acres are often considered rural, making them harder to finance under standard home loan terms.

Why is it more difficult?

Because lending policies are often shaped by decision-makers in capital cities, where a trip to Penrith is considered “going bush.” While they might know of Perth or Uluru, there’s often limited understanding of regional property needs.

To have finance treated as a standard home loan, most lenders will expect several conditions to be met:

• All-weather access – Sealed roads are preferred, though well-maintained all-weather gravel access may be accepted.
• Electricity connected – Off-grid living is usually not supported; access to mains electricity is expected.
• Water supply – Town water is preferred. Rainwater tanks may cause concern, although trickle-feed systems are often acceptable.
• Phone service – Once a major barrier, this is now less of an issue with the rise of mobile and wireless communication.
• Sewerage – Septic systems or other council-approved waste treatment systems are generally fine. Long-drop toilets are not.
• Location – Ideally within 5 to 10 kilometres of a recognised town centre.
• Price – If the sale price is near the highest recorded in the area, lenders may hesitate due to resale risk.
• Market evidence – Recent comparable sales within the last six months are usually needed. Properties on larger blocks may sit on the market longer, so comparable data can be limited.
• Size – Properties up to 100 acres can be considered, provided they are not income-producing. Beyond this, lenders become more cautious

Depending on the property and borrower profile, some of these conditions may be negotiable.

It’s not all bad news

While this might sound difficult, we work with lenders who specialise in these types of properties. These are typically smaller, regionally focused institutions that understand the lifestyle, and in many cases, aspire to it themselves.