You usually need at least 25% down to buy land in Canada, and often more. CMHC and Sagen will not insure vacant land, so there is no 5%-down option. Credit unions and banks lend on serviced lots, sometimes up to 75% of value. Farm Credit Canada typically wants 25% down on farmland. Raw rural land is the hardest: private lenders lend about 40-65% of value for 6-12 months, until you build, sell or refinance.

What kind of land are you buying?

Lenders treat land very differently depending on what it is. Tap your type.

The easiest land to finance

A lot with water, sewer, power and road access, zoned for a home. Credit unions and some banks lend on these, and a lot-purchase program can go to 75% of value. The exit is a construction mortgage once you are ready to build.

Construction loans Check my options

Lenders want a well, septic and road access

An acreage with services, or a clear plan for them, is easier than bare land. Expect 50-65% of value from most lenders, and a higher appraisal fee because sales to compare are scarce.

Alberta acreages Check my options

The hardest land to finance

No services, sometimes no road. Banks rarely lend. Private lenders may lend 40-50% of value for 6-12 months, and only with a believable plan: build, service, sell or refinance.

How much you can borrow Check my options

Working farms go to farm lenders first

Farm Credit Canada and credit unions are usually cheaper. FCC typically wants 25% down, or other land pledged instead. In BC's Agricultural Land Reserve, a parcel usually allows one home up to 500 m², plus a second home up to 90 m² on parcels of 40 hectares or less.

ALR home rules Check my options

How much can you borrow on land?

Land type	Who lends	Typical loan	Term
Serviced lot in a city or town	Credit unions, some banks, private	Up to 65-75% of value	1-5 years
Rural acreage with services	Credit unions, private	50-65%	1-5 years (private 6-12 months)
Raw land, no services	Private, a few credit unions	40-50%	6-12 months
Working farmland	Farm Credit Canada, credit unions	Often 75% (25% down)	Long terms available

Private and acreage ranges are what we see on files; lot and farm figures are from lender-published offers (Servus Credit Union and ATB lot programs; FCC). Every lender sets its own limits after an appraisal.

Example. A $400,000 serviced lot at 60% supports a $240,000 loan. You put in $160,000. A $300,000 raw parcel at 45% supports $135,000, so you need $165,000 of your own money or equity from another property.

Couple signing documents at a desk as the advisor hands over the pen — Buying land is usually step one of a bigger plan. We plan the loan around step two: the build, the sale or the refinance.

Can you use equity in your home to buy land?

Yes, and it is often the cheapest way. A second mortgage or refinance on your house can supply the cash, so you buy the land outright or with a small land loan. A home has more lenders and lower rates than bare land. Try your numbers:

Home value

Mortgage you owe now

Where the property is

How much you want to borrow

You could borrow up to

$0

Mortgage you oweNew loanEquity you keep

Combined loan-to-value
Likely second-mortgage rate
Interest-only payment
Equity you keep

Check my options with these numbers

Estimate only, as of November 2026. Lenders use the appraised value, not the assessment. Fees come off the advance.

What are the ALR rules on homes?

In BC's Agricultural Land Reserve, the rules limit what a lender can count on. Generally, a parcel can have one principal home up to 500 m² of floor area. A second, detached home up to 90 m² is allowed on parcels of 40 hectares or less if the main home is 500 m² or less, and up to 186 m² on larger parcels. Anything bigger needs an application to the Agricultural Land Commission. Lenders appraise ALR land as farmland, not as a building lot.

How does a private land loan work?

Send the land details

Address, zoning, services, price and your plan.

Lender and appraisal

We find a lender that does that land type. A land appraiser values it.

Written commitment

Loan amount, rate, fees and APR in writing.

Fund and exit

6-12 months, then a construction loan, sale or refinance.

Check my options Call (604) 591-3590

Land loan questions

Can I buy land with 5% down in Canada?

No. Mortgage insurance, which makes 5% down possible on homes, does not cover vacant land. CMHC does not advance on vacant land and Sagen lists raw land as ineligible. Plan on 25% or more.

Can I build on land and get a mortgage later?

Yes. Many people buy the lot with cash or a land loan, then use a construction mortgage that pays out in stages. For CMHC-insured builds, you must own the land by the first advance. How construction loans work.

Why is land harder to finance than a house?

There are fewer buyers, fewer sales to compare and nothing to live in or rent. If the borrower stops paying, land takes longer to sell. Lenders cover that risk with lower limits and higher rates.

What do I need for a land appraisal?

The legal description, zoning, a survey if you have one, and details of water, septic, power and access. Rural land appraisals cost more because the appraiser has to find comparable land sales.

Sources. CMHC Improvement · Sagen property eligibility · Farm Credit Canada, borrowing basics · Servus and ATB lot financing (Lloydminster lot sales) · Agricultural Land Commission, housing in the ALR. Checked 5 November 2026.

Real people, not a call centre

Talk it through with a licensed broker before you decide

Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.