Buying a block to build your home on, with an indicative assessment within 2 business days
- Indicative assessment within 2 business days; lender approval usually takes 2 to 6 weeks
- Loans from $100K to $2M for the land purchase, or for the land and the build approved together
- Blocks in new estates, established suburbs and regional towns, including lots that are not yet registered
- First home buyers checking the NSW transfer duty exemption on land and the 5% Deposit Scheme rules for land and build
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) options across our 90+ lender panel
You have found a block, or you are close to signing for one, and the plan is to build your own home on it. Buying vacant land is not quite the same as buying a house. Lenders look at the size, zoning and location of the block, and at whether it is serviced and has its own title. Some lenders lend less against larger, rural or unserviced land. If the lot is not yet registered, settlement waits for registration, which can be months away. Joseph Farhat and his team can look at the block, your deposit and your income, and tell you what lenders are likely to do with it.
Who we can help access finance
- First home buyers buying a lot in a new estate, who want to see how the land and the later build are each funded.
- Buyers of a block in an established suburb who plan to build a home to live in.
- People who have signed for an off-the-plan lot and are waiting for the plan to be registered.
- Buyers looking at acreage, rural or unserviced blocks, where fewer lenders have a policy that fits.
- Sole traders and contractors whose income shows in BAS and business bank statements more clearly than in a tax return.
How Vacant Land Loans Work
A vacant land loan is a home loan secured by the block itself. With no house on it yet, lenders weigh things they would not ask about for an established home: the zoning, the lot size, whether water, power and sewer are connected, whether the land has its own title, and where it is. Policy on vacant land differs from lender to lender, and that is where comparing the panel matters most. Repayments begin when the land settles. The land is security for the loan, so it is at risk if repayments are not met. Get independent legal advice on the loan documents before you sign. When you are ready to build, you apply for a construction loan, and the lender assesses your income and position again at that point. Some lenders approve the land and the build together from the start.
Some land is sold before it has its own title. Lenders settle against a registered lot, so the loan is formally finalised close to registration. An approval given at exchange can lapse in the meantime, and the lender looks at the land and your position again before settlement.
Joseph Farhat and his team review the block, the contract and your income, match the land to a lender from the 90+ panel whose policy fits it, and manage the application to settlement. We are a finance broker, not a conveyancer or tax adviser. Your conveyancer or solicitor confirms the contract and the duty, and Revenue NSW sets the concessions.
What Lenders Assess for Vacant Land Loans
The block
size, zoning, location, and whether it is serviced and titled.
Your deposit and the LVR
the loan-to-value ratio (LVR), the loan as a share of the property's value. Each lender sets its own limit for land, and some set it lower than for a house.
The lender's valuation
the loan is based on the valuer's figure, not the price in the contract. If the valuation is lower, you fund the difference.
Registration
for an unregistered lot, the expected settlement and whether the approval will need renewing before then.
Your plans to build
what and roughly when, and for a 5% Deposit Scheme loan, a building contract within set time limits.
Holding the land
repayments on the land loan alongside rent or a current mortgage. Banks test them at a rate 3 percentage points above the loan rate, the APRA setting confirmed on 28 May 2026.
Your income
payslips, or tax returns or alt-doc evidence if you are self-employed. Income is checked on every path.
The Vacant Land Loan Process: What to Expect
- Tell Joseph Farhat and his team about the block, the price, your deposit and your plans to build.
- Share the land contract or listing, your income evidence and details of any loans you already hold.
- We match the block to lenders whose land policy suits it, and note any scheme or duty points to confirm.
- The lender values the land and issues an approval. For an unregistered lot, we keep track of when that approval expires against the expected registration.
- The land settles. When your building contract and plans are ready, a construction loan is applied for and assessed on your position at that time.
Indicative Finance Options
| Lender Type | Pricing | Typical Loan Range | Land Considered | Loan Structure | Speed to Approval |
|---|---|---|---|---|---|
| Bank | Sharpest available pricing | $100K to $2M | Serviced, titled residential lots; policy narrows on larger or rural land | A land loan followed by a construction loan, or both approved together | 2 to 6 weeks |
| Non-Bank Lenders | Priced for flexibility | $100K to $2M | Some consider a wider range of block sizes and locations | A land loan; alt-doc and low-doc options | 2 to 4 weeks |
| Private Finance | Not typically used for buying land to build a home on. Available for unique scenarios only. | ||||
Indicative figures only. Actual terms depend on your circumstances, the property, and lender assessment at the time of application. We quote your rate and comparison rate for your specific loan amount and term before you apply. Terms are subject to change.
Why borrowers choose Settled With Joe for vacant land loans
We represent you, not the lender
Joseph Farhat and his team owe you a best interests duty on every consumer loan we help with, and the land loan is no exception.
Land policy compared, lender by lender
zoning, lot size, servicing and title change which lenders will take the block, so we check before you sign.
Scheme rules flagged early
the duty exemption and the 5% Deposit Scheme each set conditions for land, and we point you to who confirms them.
One lender approached first
each credit enquiry is recorded on your file, so we narrow the list before anything is lodged.
90+ lenders on one panel
bank, non-bank, and specialist, so a standard residential lot and a clean file can reach bank pricing.
Private finance for unique scenarios
where bank and non-bank options do not fit the block, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the block or the deposit does not fit lender policy, we will tell you as soon as we see it.
Frequently asked questions
What is a vacant land loan?
A vacant land loan is a loan to buy a block with no home on it, secured by the land. Here, it means a block you plan to build your own home on. Lenders assess it much as they do a house purchase, with extra attention to zoning, size, servicing and title.
Will applying affect my credit score?
Each application for credit is recorded on your file, whether it is approved or not, and several close together read poorly to the next lender. Land is where this happens easily: one lender declines a block on policy, so the buyer tries another, then another. We check each lender's land policy against your block before anything is lodged, so the first application goes to a lender whose policy already fits.
What is a comparison rate, and why are no rates shown on this page?
A comparison rate puts the interest rate and standard fees into one figure, so loans can be compared on the same basis. It is calculated for a set amount and term, and your amount depends on the block, the valuation and your deposit. We give you the rate and the comparison rate for your loan amount and term before you apply.
Do you work with borrowers with bad credit?
Yes, we do. A listing on your credit file does not rule out buying land, and there is no judgement when you tell us about it. Lenders consider the type of listing, how old it is, whether it has been paid, and how your accounts have run since. Some lenders on our panel put more weight on your deposit, your income and the block itself, and set the price to match the risk rather than decline. Raising it early means the lender that fits is approached first.
Do you act in my best interests?
Yes. On consumer credit we owe you a best interests duty, and if our interests and yours conflict, yours take priority. We make reasonable inquiries about your requirements, objectives and finances, and take reasonable steps to verify what you tell us. For land, that includes asking how you plan to fund the build. We must not suggest a loan that is unsuitable for you. You receive our Credit Guide before any credit assistance is given.
Do lenders lend less on land than on a house?
Some do, but not always. Many lenders treat a small, serviced residential lot much like a house. Some lend less against vacant land, especially larger, rural or unserviced blocks. Comparing policies across the panel shows which lenders suit your block.
What happens if the land is not registered yet?
An off-the-plan lot has no title of its own, so the balance is paid after the plan is registered. Registration can take months, sometimes longer. In NSW, the seller must give you the registered plan at least 21 days before settlement, and can use a sunset clause to end the contract only with your consent or a NSW Supreme Court order. The deposit is held in trust until settlement. An approval may need renewing before then, and the lender's valuation near settlement decides the loan.
Is there a first home buyer duty concession on land in NSW?
Yes. Under the First Home Buyers Assistance Scheme, for contracts exchanged on or after 1 July 2023, vacant land you intend to build a home on is fully exempt from transfer duty up to $350,000. A concessional rate applies above $350,000 and under $450,000. You must be 18 or over and buy the whole property. Neither you nor your spouse or partner can have owned residential property in Australia or received the concession before, and at least one buyer must be an Australian citizen or permanent resident. Residence conditions apply, and Revenue NSW sets them.
Can I use the 5% Deposit Scheme to buy land and build?
Yes, if you are eligible and the land and the build both meet its rules. The First Home Guarantee and the other Home Guarantee Scheme streams were renamed the Australian Government 5% Deposit Scheme on 1 October 2025. It covers a house and land package, or vacant land with a separate building contract, with a 5% deposit (2% for single parents) and no lenders mortgage insurance (LMI). Land price plus build cost must be under the cap: in NSW, $1,500,000 in Sydney and the NSW regional centres (including Newcastle and Lake Macquarie, the Central Coast and Illawarra) and $800,000 elsewhere. The lender requires a building contract within 6 months of loan settlement, building started within 12 months and finished within 36 months, and you living there within 6 months of the occupation certificate. Land you owned before securing a place does not qualify. You apply through a Participating Lender, which can confirm the cap for your postcode.
Do I pay land tax on a vacant block while I build?
You may. NSW land tax is charged on the unimproved value of the taxable land you own at midnight on 31 December, once the combined value is above the general threshold Revenue NSW publishes. Vacant land is not automatically exempt. You may be able to claim a concession for up to 4 years after you take ownership (up to 6 where exceptional delays occur), if you meet all of Revenue NSW's conditions, including living in the home for at least 6 continuous months once it is built. Revenue NSW or your accountant can confirm your position.
Why work with Settled With Joe to arrange your vacant land loan?
Because one conversation can check your block against land policy across the panel, instead of an application to each lender in turn. We help first home buyers in new estates, people waiting on a lot to register, and self-employed buyers and directors whose income needs more documents to show, often with an exchange date already set. Nobody here will judge your situation. What lenders look at is the block, your deposit, the valuation and what you can repay. Our panel covers 90+ bank, non-bank, and specialist lenders, so a clean file on a standard lot can go to a bank at a sharper rate. We are based in Sydney and help buyers right across Australia. Joseph Farhat and his team will tell you honestly and early what is achievable.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with vacant land loans outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges vacant land loans Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Duty concessions, land tax and off-the-plan rules differ by state, so the NSW figures on this page apply in NSW only. Joseph Farhat and his team will identify which lenders on the panel accept land in your area.
