In saying that, small-scale working farms have been known to provide diligent owners with a second source of income.
Generally speaking, a hobby farm is a rural property used for the purposes of small-scale farming.Įssentially, the farm is designed for personal fulfilment or self-sustainability rather than for the purposes of turning a profit on a commercial basis. Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will let you know which lenders will accept your hobby farm. The main problem banks have with financing a hobby farm is to do with the improvements that typically need to be undertaken and what the farm is used for.
#Ms banks hobby farm loans professional
Discounts: Competitive professional package and basic loan discounts are available for blocks that are up to 100 ha in size.Guarantor loans: Borrow up to 100% with select lenders only.Please discuss your situation with our mortgage brokers. Commercial farms: We can get you get a loan to buy an agricultural business (agribusiness), including equipment finance.Please see the vacant land loan page for specific approval criteria. Vacant land: Borrow up to 95% of the property value depending on the size of the vacant block.Investment: Borrowing is restricted to 90% of the property value but you may be able to borrow up to 95% if the property is less than 2 ha.
Please discuss your situation with us if you believe your property is not “income-producing” (see below definition). Land size over 100 ha: These farms may not be considered as “hobby farms” by the banks.Land size up to 100 ha: You can borrow up to 70% – 80% of the property value on a case by case basis.Land size up to 60 ha: You can borrow up to 80% of the property value.Land size up to 50 ha: Up to 90% of the property value if you are close to a major town, otherwise you can borrow 80% of the property value.Land size up to 10 ha: You can borrow up to 95% of the property value.
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