Land Loan

Land Loan Financing in British Columbia

Flexible Land Loans for Residential and Development Projects

At Sandhu Capital, we specialize in arranging Land Loans across Surrey, Vancouver, and the Lower Mainland. Whether you’re looking to purchase a residential lot for a custom home or acquire raw development land for a future project, our team can provide fast and flexible financing solutions, especially when traditional lenders fall short.

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What is a Land Loan?

A Land Loan is a type of mortgage used to purchase vacant land, residential lots, or development sites. Unlike traditional residential mortgages, land loans are considered higher risk because the property often generates no income and may not have improvements like utilities or road access. For that reason, most banks and credit unions have strict lending guidelines, or avoid land financing altogether.

That’s where private land loan financing becomes essential.

Types of Land Loans We Offer

At Sandhu Capital, we work with a wide network of private lenders, mortgage investment corporations (MICs), and alternative institutions to provide customized land loan solutions for various property types and borrower needs.

1. Residential Land Loans

If you’re purchasing a lot to build your dream home, we can help finance:

• Vacant residential building lots

• Serviced or unserviced land

• Urban infill lots or rural acreage

• Land with existing tear-down homes

We offer land loan financing for both owner-occupiers and investors planning new construction. Our team can also assist with transitioning from a land loan to a construction mortgage when you’re ready to build.

2. Development Land Loans

For builders and developers, we arrange land loans for:

• Raw land targeted for development

• Land assemblies for subdivision or rezoning

• Commercial and mixed-use development sites

• Agricultural land with future development potential

These loans are typically structured as short-term, interest-only private mortgages to provide the liquidity needed for due diligence, permitting, or site preparation. Our team understands the development process and works with lenders who share a long-term view of your project.

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Why Choose Private Financing for Land Loans?

Banks and credit unions are often reluctant to finance land due to the lack of income, infrastructure, or zoning certainty. Private land loans provide:

• Fast Approvals and Flexible Terms
• Minimal Documentation Requirements
• Short-Term Interest-Only Options
• Funding Based on Land Value, Not Credit Score
• Custom Loan Structures for Complex Projects

Whether you’re a builder or experienced investor, Sandhu Capital can tailor a land loan that aligns with your project timeline and goals.

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Key Land Loan Considerations

When applying for a land loan, lenders will typically assess:

• Location and zoning of the property

• Access to utilities and infrastructure

• Current and future use plans

• Exit strategy or plans for refinancing or development

• Loan-to-value (LTV) – often 50–75% depending on the risk profile

We help package your application to highlight the property’s potential and present a compelling case to private lenders.

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Work with a Land Loan Expert in British Columbia

At Sandhu Capital, we have extensive experience arranging land loans across a wide range of scenarios, from rural residential purchases to large-scale development sites. We understand the challenges of land financing and pride ourselves on providing clear guidance, fast approvals, and competitive private mortgage options to help bring your vision to life.