Raw Land Mortgage Canada

Things to know before buying raw land.

Raw land mortgage canada.

Raw land is the most unmarketable investment of all of real estate. Buying raw land can be significantly cheaper than buying already improved land but it will be harder to find a lender willing to finance your purchase. Basically you can buy raw land or vacant lots with residential lending up to 160 acres with a collateral loan at bank prime rate plus something say prime 2. Unimproved raw land is usually the hardest to finance or get with favorable terms.

Raw land mortgages are the most difficult mortgages to obtain. Learning more about the real value of your land can give you a rough idea of how you can use a rural mortgage to your advantage. If your land purchase is bundled with a construction mortgage you can likely get a less expensive amortizing mortgage at normal discounted mortgage rates. Land loans come in all shapes and sizes and are unique compared to existing home loans.

Rural mortgages land mortgages and land title loans. The purpose and current use of the land can dictate the terms of the loan. Loan for raw land. If you do find a lender willing to work with you on your purchase of a raw parcel you may find that your loan will fall under the umbrella of commercial lending in which case you should.

Here are some of the reasons why lending institutions are not aggressive on lending on raw land. Whether you re considering a land purchase for commercial development or a land purchase for residential purposes your own house or for building a property for investment it is a decision that can pay off big time people who bought up land in rural or semi rural areas on the cheap in the past only to watch nearby cities grow closer and closer have. Whether you hold acres of farmland or untouched wilderness you owe a valuable asset.