Buying acreage in the Southern Highlands? Check your finance before you fall in love with the property

A bit more space. Room for the kids to run around. Maybe a shed, a few animals or just a quieter place to come home to.

It’s easy to see the appeal of buying acreage in the Southern Highlands. But a home on a few acres can raise different lending questions from a house on a standard block in Bowral or Mittagong.

That doesn’t mean it’s out of reach. It means it’s worth checking the property and your finance options together, rather than assuming the loan will work the same way.

Different lenders can see the same property differently

With rural and acreage properties, lenders can have different rules about land size, location and how the property will be used. Those differences can affect which lenders will consider it and how much they may be prepared to lend.

A property you plan to live in may also need a different conversation from one you want to use to earn income or run a business.

So if one lender isn’t comfortable with the property, that doesn’t automatically mean there are no options. It’s a reason to look at the details before making your next move.

Why can lenders be more cautious?

A lender looks at both your ability to repay and the property securing the loan. With acreage, the property itself can need a closer look.

An unusual property may appeal to fewer buyers or take longer to sell. Its location, land size, access and services can also affect whether it meets a lender’s requirements. And a home on a lifestyle block isn’t necessarily assessed the same way as a property used to run a business.

That’s why one lender might want a larger deposit or decide the property falls outside its policy, while another may be willing to consider it. It doesn’t mean every rural property is difficult to finance. It means matching the property and your circumstances to the right lending options matters.

Start with the property you’re actually considering

If you’ve found somewhere around Joadja, High Range or elsewhere in the Highlands, send me the listing and tell me what you have in mind.

A few useful starting points are:

• Where is it, and how much land comes with it?
• Is there an existing home, or are you planning to build?
• Will it be your home, an investment or used for a business?
• What deposit do you have, and are you selling another property?
• What timing are you working towards?

You don’t need every answer before we talk. I can explain what information we’ll need to explore the lending options available through our panel.

Browsing acreage? You can explore current Southern Highlands acreage listings on realestate.com.au. If a property catches your eye, we can talk through the finance questions before you take the next step.

Look beyond the purchase price

Acreage can come with costs that are easy to overlook at the first inspection. Think about fences, driveways, water supply, wastewater systems and ongoing maintenance, as well as the usual buying costs.

It’s also worth having your solicitor or conveyancer check the contract, access and relevant restrictions, and confirming permitted uses with council. The NSW rural-property buying checklist is a useful place to start.

I can help with the finance side, while those specialists help you understand the property itself.

Where a broker can help

My role is to understand what you’re trying to do, check the relevant lender requirements and help compare suitable options from the BMoney panel.

That includes looking beyond the advertised interest rate to the deposit required, repayments, fees and loan features. If you decide to apply, I can help with the paperwork, follow up on lender questions and keep you informed as things progress.

A loan still needs to meet the lender’s requirements, and approval depends on your circumstances and the property. Getting that conversation started early helps us identify the questions that need answering.

Thinking about an acreage purchase?

You don’t need to have it all worked out. Whether you’re browsing properties or already have one in mind, get in touch and we can talk through your next steps.

Samantha Gilarte, mortgage and finance broker. Finance solutions provided through BMoney Group.