So You Want To Buy Land

by | Feb 5, 2023

Understanding Land Financing Options

When it comes to purchasing land, it’s important to consider the various financing options available. From land loans to construction mortgages, there are several options to choose from, each with its own unique benefits and drawbacks.

Raw Land Loans

Raw land can require a substantial down payment, with high interest rates being a common characteristic of raw land loans from private lenders. This type of loan is typically used for the purchase of raw, undeveloped land for investment or personal use.

Construction Mortgages

Construction mortgages provide funding for both the purchase of land and the construction of a home. This type of loan is ideal for those who want to build a home on their land and need financing for both the land and the construction process.

Second Mortgages

Homeowners looking to purchase additional land may consider second mortgages such as a HELOC or home equity loan. This option allows the use of existing home equity to purchase land at a lower interest rate.

Canadian Agricultural Loans Act (CALA) Program

The Canadian Agricultural Loans Act (CALA) Program provides assistance to farmers who are looking to purchase land, making it a great option for those in the agricultural industry.

Seller Financing

Seller financing is another option that bypasses traditional banks and allows for payments to be made directly to the seller in exchange for the land title. This option is ideal for those who don’t want to deal with the traditional banking system and prefer to have direct communication with the seller.


In conclusion, when it comes to land financing, it’s important to consider all options and weigh the pros and cons to determine the best fit for your individual needs. Whether you’re looking to purchase raw land, build a home, or expand your agricultural business, understanding the different financing options available can help make the process a little bit easier.

Please don’t hesitate to schedule a call to see what options work best for you or even just to ask any questions to help you in your journey.

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