Land loans to buy your
vacant land or building lot.
Big banks are selective about vacant land. We know which lender fits raw land, a serviced lot, or a buy-and-build — and we compare terms side by side.
Three types of land financing —
one broker who knows all of them.
Land loan policy varies sharply by lender and lot type. We match you to the right lender, not just the one who says yes.
Raw / undeveloped land
No road, water, power or septic. The highest-risk land type for lenders — expect 35–50% down and a higher rate, typically through alternative or private lenders.
Serviced building lot
Utilities and year-round 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 financing
Buying to build right away? A construction draw mortgage can fund the land and the build in stages — releasing funds as work is completed, often the cheapest route.
We compare 100+ lenders
Credit unions, B-lenders and private lenders each have their own land policies. As your broker, we compare them all and show you terms side by side — at no cost on standard files.
Land loan to
closed — three steps.
We match the lot type to the lender. You choose the terms. Your lawyer closes.
Tell us about the land
Raw land, a serviced lot or a buy-and-build: share the lot details, your down payment and your plan for the property.
Compare lenders
We compare lenders that fund your lot type and show you the terms side by side — rates, LTV limits and lender-specific conditions.
Secure your lot
Once you choose, we submit the file and, once approved, your lawyer closes the purchase. We stay with you through conditions and funding.
We can help across
many land scenarios.
Tap any situation below to see how we approach it.
If you’re…Buying a serviced lot to build in the next 2–3 years
Buying a serviced lot to build in the next 2–3 years
Many B-lenders and credit unions finance serviced lots with 25–35% down, especially when you have a documented build plan. We match your lot type to the right lender so you're not over-paying.
Compare lot lendersIf you’re…Buying raw land with no immediate build plan
Buying raw land with no immediate build plan
Raw land is harder to finance — expect 35–50% down and a higher rate through alternative or private lenders. We know which lenders accept which land types and what they need in the file.
Explore raw land optionsIf you’re…Using your home equity to fund the land purchase
Using your home equity to fund the land purchase
If you own a home with equity, a HELOC or refinance can fund the land or part of the down payment at a lower rate than a standalone land loan. We model both paths so you choose with the full picture.
Compare HELOC vs land loanIf you’re…Rolling the land and build into one facility
Rolling the land and build into one facility
Setting up the land purchase and build as one construction mortgage can be simpler and cheaper than a standalone land loan plus a later refinance. We map all three stages — land, build and permanent — before you commit.
See construction optionsIf you’re…You have bruised credit or non-traditional income
You have bruised credit or non-traditional income
Alternative and private lenders focus more on the land and your down payment than on your credit score, typically at a higher rate. A documented build plan and a strong down payment help your file.
Talk through my fileIf you’re…Buying a rural, seasonal or cottage lot
Buying a rural, seasonal or cottage lot
Lenders look closely at year-round road access, available servicing, comparable sales and zoning. Rural lots narrow the field — we know which lenders fund them and what they check.
Explore rural land lendersLand loan types —
side by side.
Down payment, typical lenders and terms differ sharply by lot type. Here's what to expect.
| Land type | Typical down payment* | CMHC insurable? | Typical lenders | Best for |
|---|---|---|---|---|
| Raw / undeveloped land | 35–50% | No | Private, B-lenders | Buy and hold |
| Serviced building lot | 25–35% | No | B-lenders, credit unions | Build in 2–5 years |
| Construction draw mortgage | Varies (20–35%) | No (land phase) | Select A, B & credit unions | Build right away |
| Home equity (HELOC / refi) | N/A — uses equity | N/A | A-lenders, credit unions | Land + lower rate |
* Typical ranges across our lenders (October 2026); each lender sets its own policy. Actual down payment depends on the property, your plan and your file.
Common questions,
clear answers.
Down payments, rates, zoning, and your options — answered plainly.
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. These are typical ranges across our lenders (October 2026); each lender sets its own policy. Vacant land can’t be insured by CMHC, so lenders price for the higher risk. We compare lenders that fund your lot type and show you the terms side by side.
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, which can cost less than a separate land loan plus a later refinance, depending on the lender’s rate and fees.
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.
Can I use my home equity to buy land?
Often, yes. If you own a home with enough equity, a HELOC or a refinance can fund the land purchase or part of the down payment, usually at a lower rate than a standalone land loan. Your home secures that borrowing, so it needs to fit your overall budget.
Can I get a land loan with bad credit?
It’s harder, but possible. Alternative and private lenders focus more on the land and your down payment than on your credit score, typically in exchange for a higher rate, fees and a larger down payment. A clear plan to build and a strong down payment help.
Does zoning affect whether I can get a land loan?
Yes. Lenders want to know what can legally be built on the lot. Land zoned for a residential dwelling, with year-round road access and available servicing, is much easier to finance than land with restricted uses, environmental constraints or no legal access.
- CMHC. CMHC Purchase (homeowner mortgage loan insurance). accessed September 2026. An insured property must be suitable and available for full-time, year-round occupancy, which vacant land is not.
- OSFI. Residential Mortgage Underwriting Practices and Procedures (B-20). accessed September 2026. Federally regulated lenders apply the minimum qualifying rate — the greater of the contract rate plus 2% or 5.25%.
- Mortgage Squad Advisors (internal). Lender policy observations. October 2026. Our own experience across our lenders, not a regulatory rule: typical down payments of 25–35% for a serviced lot and 35–50% for raw land. Each lender sets its own policy.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a specialist in your city
Land loan policy varies by lender and lot type. Our advisors know which lenders fund raw land, serviced lots and buy-and-build projects across Canada.