A lender approves the property as much as the borrower. The kind of building, its condition and what you plan to do with it can rule lenders out before your income even comes up.
What they look at on a lot
Zoning, access from a maintained road, whether services are in place, and whether you plan to build. A serviced lot in a residential sector is a completely different file from a wooded parcel with no winter access.
Keep the whole budget in view
The mortgage payment is not the only cost. Municipal and school taxes, insurance, heating and maintenance come on top, and plenty of lenders want a reserve left in your account after closing.
Documents to gather
What the lender will ask for.
Intended use
Kind of property
Appraisal and comparables
Income or leases
Down payment or equity
Eligible lenders
Frequently asked
How much down payment do I need for land?+
A lot more than for a house. Often 25% or more, and sometimes half for an unserviced lot. Vacant land earns nothing and is harder to resell, so lenders keep a wider margin.
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Add the zoning, the year-round access and proof of services. Have all of it before you make an offer if you want a short financing window to hold.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
