Buying Bare or Vacant Land? Things you need to know!

Home » Blog » Buying Bare or Vacant Land? Things you need to know!

When you plan to buy the acreage or country property, you have to consider some of the important points. You should first think about how many acres you have to buy? For conventional mortgages, the lenders will finance or provide the mortgage for a specific number of acres, garages, or houses. The total number of acres that they have to consider will vary depending upon the property's location and the norms of the area. The minimum down payment will also be depending upon the size and location of the total land.

For instance, the property near the major urban area and less than 10 acres of land will need about 20% of the down payment. If the area is more than that, the down payment will automatically increase.

For the land with high-ration or CMHC insured mortgages, they require a minimum of 5% of down payment. It is easier to secure financing on CMHC insured mortgages. It is not too uncommon for the lenders to require the mortgage, even when the buyers have to pay a 20% down payment depending upon the purchasing amount. If the acre is large, it has the outbuildings of the major value, or it has the mobile or the modular home, these all can result in either a large down payment or mortgage default loan. Whether you are looking for a property or vacant land in the country, you should first consult with a vacant land mortgage provider like Ron Richards, who has several years of working experience in this field.

What will happen about the Portability?

There is no mortgage unless there is no potable water or drinking water. It is always better to choose the land that has a good water supply. The potable reports are needed to be shown for the well water flow rate, which is requested either upfront with the lender approval or from the lawyers before closing.

Apart from this, the buyer should also keep in mind the regulations involved in zoning and check whether the property has outbuildings. For any bare land mortgage in Calgary, consult with a professional now.

Leave a Reply

Your email address will not be published.