Lifestyle property lending
Lifestyle property loans: a little more room to move
Your next home might come with a few extra acres.
For some people, the ideal home isn't in a suburban estate. It's a house surrounded by open paddocks, a little more privacy, room for the kids to explore, somewhere to keep a few animals, or simply the opportunity to enjoy a quieter lifestyle.
But purchasing a lifestyle property can involve a different lending process from buying a conventional suburban home. Land size, location, zoning, property improvements and even how you intend to use the property can influence which lenders are prepared to assist.
At Valley Lending Co., we have a particular interest in acreage and regional property lending, with access to a broad panel of lenders, including specialist and regional options.
Whether you're purchasing your first acreage property, relocating from the city or looking for your next lifestyle change, we can help you explore your finance options.
Discuss Your Lifestyle Property Purchase
What is considered a lifestyle property?
A lifestyle property is generally purchased primarily for residential enjoyment rather than commercial agricultural production. It might be a family home on several hectares, a rural residential property with established gardens and sheds, or a larger acreage property with space for horses and other animals.
Common examples include:
- Homes on larger rural residential blocks
- Established acreage properties with additional sheds or outbuildings
- Properties with horse paddocks, stables or riding facilities
- Rural homes with substantial surrounding land
- Larger properties purchased for privacy, recreation or personal lifestyle purposes
- Properties suitable for small-scale, non-commercial agricultural activities
Importantly, lenders don't all define lifestyle properties in the same way. The property's size, location, zoning and intended use can affect how it is assessed. If you're purchasing land without an existing home, our vacant land page covers how land size and intended use affect vacant land finance separately.
Does acreage size affect your home loan options?
Yes. Different lenders have different policies around the maximum land size they're prepared to accept under residential lending. While some lenders prefer smaller rural residential properties, others may consider significantly larger acreage.
Under 10 hectares
Smaller lifestyle properties may be suitable for a broader range of residential lenders, provided the property meets their location, zoning and security requirements.
10 to 50 hectares
As acreage increases, lender selection can become more important.
Some lenders may apply additional requirements or restrictions, particularly for properties located further from established towns and population centres.
50 to 100 hectares
Properties of this size may fall outside the standard residential lending policies of many lenders.
However, residential finance may still be available through lenders with more accommodating acreage policies, depending on the property's characteristics and intended use.
Over 100 hectares
Larger lifestyle properties require a more individual assessment. The property's residential nature, location, improvements, zoning, marketability and intended use can all influence the available lending options.
A larger landholding does not automatically mean the purchase must be financed commercially.
These categories are provided as general guidance only and should not be read as universal lending limits. Individual lender policies vary, and the property's own characteristics matter as much as its size.
What do lenders consider when assessing a lifestyle property?
Land size is important, but it's far from the only consideration.
Location and remoteness
Properties in regional or remote areas may have fewer suitable lenders than those closer to established towns and services.
Residential improvements
The condition, suitability and nature of the existing dwelling can influence lender acceptance and valuation.
Zoning and intended use
Lenders may consider whether the property is predominantly residential in nature and whether any agricultural activities are incidental or commercial.
Access and services
Legal road access, electricity, water availability and other essential services may influence how the property is assessed.
Additional infrastructure
Large sheds, stables, fencing, arenas, dams and other improvements can form part of a lifestyle property's appeal, although lenders and valuers may assess their contribution to the property's value differently.
Marketability
Lenders may consider the property's location, demand and potential resale market when determining whether it is suitable loan security.
Buying acreage for horses, animals or a rural lifestyle?
One of the most common reasons people purchase lifestyle acreage is to have more space for their animals. You might be looking for somewhere to keep horses, establish paddocks, build stables or simply enjoy having animals at home.
These features don't automatically make a property commercial. The intended use of the property, together with its physical characteristics and any income-producing activities, can influence how a lender assesses the purchase. If animals or produce start moving beyond a personal, non-commercial scale, our hobby farms page looks at where that line tends to sit, and our working farms page covers properties run as a genuine farming operation.
At Valley Lending Co., we understand that purchasing acreage is often about more than the house itself. We can help explore lending options that take the broader property and your intended lifestyle into consideration.
Let's Talk About Your Acreage Plans
Moving from the city to the country?
Purchasing a lifestyle property often involves more than changing your address. You might be relocating for work, selling an existing home, transitioning to remote employment or purchasing a property several hundred kilometres from where you currently live.
Lenders may need to understand how your employment and income arrangements will continue following the move. Planning the finance structure early can help identify potential challenges before you commit to a property.
Whether you're upgrading, downsizing or making a long-awaited lifestyle change, we can help you explore the available options.
Can you refinance an existing lifestyle property?
Already living on acreage?
You may still have opportunities to review your existing home loan, even if your property doesn't fit the standard security criteria of every lender. Depending on your property's characteristics and your financial circumstances, refinancing may provide opportunities to review your interest rate, loan structure or available equity.
Our access to a broad panel of lenders allows us to investigate suitable refinancing options for established acreage properties. See our refinancing page for more on how a refinance review works.
Been told your property is too large or too rural?
Not every lender has the same appetite for acreage properties. A property that falls outside one bank's lending policy may still be considered by another lender with different security requirements.
We have a particular interest in helping buyers investigate acreage purchases that don't fit neatly into conventional residential lending criteria. Whether it's the land size, location, zoning or an unusual property feature, understanding the reason behind a lender's concerns is an important starting point.