3 types of land financing
Raw / undeveloped land
No road, water, power or septic. Highest risk to lenders — expect 35-50% down and a slightly higher rate, usually through alternative or private lenders.
Serviced building lot
Utilities and road access at the lot line. Easier to finance — often 25-35% down with B-lenders and some credit unions, especially with a build plan.
Construction-ready (build now)
Buying to build right away? A construction / draw mortgage can fund the land plus the build in stages — often the cheapest route. See our construction page.
Land loans — FAQ
How much down payment do I need for a land loan in Canada?
More than a home: typically 25-35% for a serviced lot and 35-50% for raw land. Vacant land can't be insured by CMHC, so lenders price for the higher risk. We match you to the lender with the best terms for your lot.
Can I get a land loan from a big bank?
Most major banks shy away from raw land. Credit unions, B-lenders and private lenders are the usual sources — and that's exactly the network a broker brings. We know which lenders fund which lot types.
Is it cheaper to buy land and build at the same time?
Often yes. A construction (draw) mortgage can roll the land purchase and the build into one facility, with funds released in stages — usually a lower rate than a standalone land loan.
What rate will I pay on a land loan?
Higher than a standard mortgage because of the risk and lack of insurance — the exact rate depends on the land type, your down payment and credit. We shop it across our lenders to get you the best available.