Buying a Lot: Vendor Financed Land Purchase vs a Conventional Bank Mortgage

Purchasing bare land to eventually build your dream house is not quite as easy as purchasing an already built house. At Spring Lake Ranch we have creative ways to make land purchasing as easy as possible to facilitate all the aspects of building your dream home.

Traditional bank financing for land purchases

In Canada, traditional land purchase financing usually involves taking out a mortgage from a bank or other lender. Buyers must qualify for the loan, which requires them to provide evidence of their income, credit score and down payment amount. The interest rate and loan terms are based on the buyer’s credit worthiness. The process can take several weeks to complete and generally requires a high credit score in order to be approved. Once approved, buyers will have monthly payments that must be made until the loan is paid off. Unlike buying a home, a down payment for land purchase is often 50% of the purchase price or more!!

Flexible vendor backed financing for land purchases

At Spring Lake Ranch, we recognize the challenge of putting up 50% of the purchase price up front, without necessarily having the home design, construction schedule and financing, and transferring the equity out of your own home while managing where you are going to live or navigating cash flow challenges that come with purchasing and building in Canada.

As a result, we have designed a flexible land purchase opportunity that requires only a 10% down payment with no interest or further installments due for an entire year. This gives you plenty of time to design your home, select a builder, sell your existing home and make living arrangements to suit your schedule.

After the first year, there is still the flexibility of interest only payments on the lot purchase in the event that you need a bit more time to line everything up in your life for a brand new home build.

Limited offer until June 30 2023

We have put this offer together for a limited time until June 30, 2023. Are you interested in this type of land purchase financing? Do you want to come see the remaining lots at Spring Lake Ranch? Get in touch with us at and we can give you all the details! 

Spring Lake Ranch  has a few remaining lots for sale, which you can find here. Custom builds can be done with any builder of your choosing.

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Sarah Corker

Sarah has been designing homes for more than 15 years, specializing in custom homes in Edmonton, Alberta and surrounding areas. She loves collaborating with her clients to build stunning, yet functional homes that will age gracefully as design trends come and go. She loves working with natural materials, such as rock and wood and then coupling them with modern building technology and design.

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