This is especially true of land with seasonal access. If you are acquiring a sub/urban lot to hold (but yet to pin down your building plans or development date) your down payment is likely 30 to 35% of the land's appraised value.ģ) For rural land purchase, no building plans in-hand yet. As your lot or land location becomes less urban and more remote, the default down payment is 50% of the land's appraised value with most land lenders. If you have hired a builder under a fixed-price contract, and the builder agrees to acquire the lot on your behalf in order to start the build, your down payment can be as little as 5% on a CMHC-insured draw construction mortgage.Ģ) For city/town lot acquisition, no building plans or permits in-hand yet.
Personally held property may be exempt.ġ) For city/town lot acquisition and immediate development, builder contract and permits in-hand. If you are acquiring the land and developing it immediately (via builder, contractor, or self-build) with a new home construction mortgage, and the vacant lot is urban or sub-urban in a desirable area, your down payment may be as little as 20% (on exception), likely at least 25%, and potentially as high as 40%. HST/GST may apply when you are purchasing the lot from a developer for example in a new subdivision, budget 5-7%.Land Transfer Tax - applies in all provinces except Alberta and Saskatchewan, budget 1%.If some lender compensation is available, your fee will be reduced accordingly. Our success-based brokerage fee starts at $1500 up to 1% of the loan amount and depends on the deal complexity. Brokerage Fee - land loan lenders do not generally compensate mortgage brokers as they do with home mortgages.Legal Fees - legal fess are part fixed cost and part variable depending on the land value and land title fees, budget $1200-$1500.Rural appraisals with travel time, expect $400-$550 Appraisal Fee - an appraisal will be required by the lender normally at your expense.Raw land, no services, pot'l for agricultural zoning Raw land, some services, pot'l for agricultural zoning
Partially-serviced rural lot, residential zoning
Down Payment Requirements ( Please Read Carefully) Lot Type
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