By Steve Chin - June 2026 - 5 min read
Adelaide's growth corridors - Mount Barker, Gawler, Two Wells, Aldinga - are releasing new land at prices that are often more affordable than established suburbs. Buying land now and building later (or buying land while you line up a builder) is a common strategy for buyers who want to lock in a block before prices move further.
Land is also attractive for buyers who want to custom-build rather than compromise on an existing floor plan.
A land loan works like a standard home loan - you borrow a set amount, choose a variable or fixed rate, and make regular repayments. The key differences are:
When you are ready to build, the land loan converts to a construction loan. The land equity you have built up (through repayments and any increase in land value) counts toward the deposit for the construction loan. In many cases, the equity in the land is enough to cover the entire deposit requirement for the build.
Some lenders allow you to set up a combined land-and-construction loan from the start, even if you do not have a builder locked in yet. This gives you certainty on the finance before you commit to a block.
Buying land and building is a two-stage process and the finance needs to work across both stages. Book a free chat and we will plan the finance from land purchase through to build completion.
Yes. Most lenders offer land-only loans. You will typically need a 10-20% deposit for vacant land, as lenders view land as higher risk than an established property. Some lenders offer land loans at 90% LVR with LMI. Government guarantee schemes may also apply if you intend to build your home on the land.
Land loans are structured similarly to standard home loans - variable or fixed rate, principal and interest repayments. The main differences are the deposit requirement (typically higher) and the loan term. Some lenders limit land loans to 20-25 years rather than 30 years. Rates may also be slightly higher.
Yes, but be aware that some lenders require you to commence building within 12-24 months. If you are not planning to build immediately, make sure your lender does not have a mandatory build timeframe. Lendology can match you with a lender that is comfortable with your timeline.