Regional & Rural Property Loans

Regional & rural locations in Australia have seen large increases in sales and buyer interest in 2020, mostly due to COVID, shutdowns and capital city affordability. How does the loan process work if you are intending to make a treechange or buy a hobby farm?

Lenders view regional and rural loans differently in particular there are restrictions on the size of the property being purchased, the distance to a major town and the services connected to the property (road access, water, power).

A "farm" may also be deemed a commercial property and enterprise and therefore a normal residential loan will not apply and a commercial loan will be the only option.

What does this all mean for a borrower? Potential borrowers need to understand they may pay a higher interest rate, need a larger deposit and may have to pay more in upfront fees for valuations. In some situations there may be almost no lending options available.

Our number one recommendation for rural and regional borrowers is to talk with a specialist broker before considering purchasing a rural or regional property so you can understand what type of loans are available.


Highland Finance Pty Ltd is an authorised representative (491823)of Elders Home Loans Pty Ltd (Australian Credit Licence 384408)