The allure of lifestyle blocks is captivating, especially as more North Island residents cast their eyes towards the scenic landscapes of the South Island, enticed by the relatively affordable prices.
If you're considering turning your lifestyle block dream into a reality, securing a mortgage is a key step, and at NZ Mortgages, we're here to guide you through the process.
Lifestyle blocks have gained immense popularity, and most banks are more than willing to lend for such endeavors. The general rule of thumb is relatively straightforward: if your block is around ten acres or four hectares, it's typically considered akin to a residential block. This means you can proceed with a mortgage structure similar to that of residential properties.
However, larger lifestyle blocks fall under the jurisdiction of the rural department, introducing different criteria for lending. In such cases where you want to purchase a proper working farm or substantial block of land, a larger deposit is often required, ranging from 30% to 40%. While this might present a more considerable upfront commitment, it's a necessary step when dealing with larger, more rural lifestyle properties.
For those eyeing a lifestyle block under the nine-hectare threshold, the path is akin to traditional residential property purchases. The deposit requirement typically hovers around 20%, making it a more accessible option for aspiring lifestyle block owners.
As you embark on this exciting journey, it's essential to align yourself with a team that understands the intricacies of lifestyle block financing. At NZ Mortgages, our dedicated mortgage advisers specialize in mortgage solutions for lifestyle blocks. Whether it's understanding deposit requirements or clarifying the transition from residential to rural categorization, we're committed to ensuring a smooth and informed process.
Key Words: lifestyle block, mortgage financing, deposit requirements, residential block, rural property, South Island, North Island, property purchase.
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