Serviced urban land: thirty to thirty-five percent
Unserviced land: forty to fifty percent
Land with permits and plans: sometimes less
Typical ranges
- Serviced urban land: thirty to thirty-five percent
- Unserviced land: forty to fifty percent
- Land with permits and plans: sometimes less
- Agricultural land: case by case
Reducing the down payment
Equity in another property can serve as additional security. Some lenders accept this.
What moves the percentage
- Whether municipal services reach the lot
- Proximity to an already built-up area
- Whether a project and permits exist
- Your development experience
- How easily the lot could be resold
Using equity from another property
You offer security on a property you already own. Lenders then accept a smaller contribution.
That approach commits the second property. Weigh the consequences before signing.
The value the lender uses
They use the lower of the price paid or the appraised value.
Paying above market therefore raises your real contribution.
Have the land appraised before setting your offer.
Budgeting fees beyond the down payment
Transfer duties and legal fees add to your contribution.
Allow a few percentage points above the amount quoted.
These amounts are paid in cash, never from the loan.
