How do you finance a bare-land purchase in BC?
Differently from a house. Commonly cited down payments on raw land run from about 25% to 50%, amortizations are shorter and rates higher, and the 5% GST is usually cash. Many buyers use equity in a home they already own instead. Lot prices as of September 4, 2026.
We hold no verified lender terms for Arbutus Ridge, so nothing on this page is a quote or an offer of credit. The percentage ranges below are the ones commonly cited in the Canadian market in 2026; treat them as a starting point for a conversation with your own lender or broker, not as figures we stand behind.
Why is bare land harder to finance than a house?
A lender's security on a finished home is a building it can insure, value against comparable sales and sell quickly. A vacant lot has none of that. There is nothing to insure, fewer comparable sales, and a slower resale market if the loan goes wrong. Default insurance from CMHC and the other insurers is built around owner-occupied housing, so a land loan is normally uninsured and priced accordingly.
What that means in practice, and what lenders and brokers commonly quote: a larger down payment, a shorter amortization than the 25 or 30 years a house attracts, and a higher rate than a comparable residential mortgage. Some lenders will not write raw land at all; credit unions and smaller lenders are usually more willing than the largest banks. None of that is a rule, and it is worth shopping.
How much down?
Commonly cited ranges, applied to the two ends of what is for sale here. These are market ranges, not lender terms we have verified.
| Down payment | Lot 8 — $545,000 | Lot 5 — $999,000 |
|---|---|---|
| 25% | $136,250 | $249,750 |
| 35% | $190,750 | $349,650 |
| 50% | $272,500 | $499,500 |
| Plus GST at 5%, normally cash | $27,250 | $49,950 |
Add the deposit timing to that. The deposit is 10% of the purchase price, payable within 7 days of the vendor accepting your offer — well ahead of any lender advance, so it comes from your own liquidity either way.
Can the GST be financed?
In most cases, no. GST is payable to the vendor on the completion date, and lenders advance against the appraised value of the land rather than the tax on the transaction. Assume the 5% is cash. A buyer who is registered for GST may have a different path — that is an accountant's question, not a lender's.
What about construction financing?
A construction mortgage is a separate product from a lot loan, and it is worth lining up the two together rather than solving the land first and the build later. Construction money is advanced in draws against work completed on the ground, typically at foundation, lock-up, drywall or interior finishing, and completion, each released after an inspection and an appraiser's progress report. You pay interest only on what has been advanced.
Two features that surprise first-time builders. The lender holds back funds through the builders lien period on each draw, so your builder is financed on a lag and needs the working capital to absorb it. And the lender lends against the completed value it appraises from your plans, so a design that costs more than it appraises for has to be closed with your own money. On Bowen there is an extra wrinkle: your appraiser and your inspector both have to get on a ferry, so build the scheduling into your expectations.
Using equity in a home you already own
This is the most common route to a recreational or future-build lot in the Lower Mainland: a home equity line of credit or a refinance secured on a Vancouver or North Shore home, used to buy the lot outright. It is usually cheaper than a land mortgage, faster to arrange, and it avoids the appraisal and servicing questions a lender asks about raw land. The trade-off is real — you are moving risk onto your principal residence and taking on a variable rate on a large balance — and it deserves a conversation with a broker and an accountant rather than a quick draw on an existing line.
Is vendor financing available?
No. The Purchase Agreement provides for a deposit of 10% of the purchase price and the balance paid to the vendor's solicitor on the completion date by certified cheque, bank draft or electronic payment. There is no vendor take-back mortgage and no instalment arrangement on offer, and you should not build a plan around one.
What will a lender ask for?
- An appraisal of the lot, ordered by the lender, from an appraiser willing to work on Bowen Island.
- Confirmation of servicing and access. Municipal water to the lot line, BC Hydro and telecom to the lot line, the septic arrangement for that specific lot, and legal access from a dedicated public road. All of it is set out in the Disclosure Statement.
- A title search. Expect the statutory building scheme, the septic and utility easements, the section 219 covenants and the rights of way to show up; your lawyer should walk you through what each one does.
- Zoning confirmation — CD 18, Sub Area 1, one dwelling per lot.
- A geotechnical report, often, on sloping island ground. A preliminary geotechnical hazard assessment (Braun Geotechnical Ltd., October 2013, revised 17 July 2018) found flooding, stream erosion, debris flow and landslide were not hazards, but identified that portions of Bluff #1 on the Public Space Lot have a greater than 50% probability of rockfall activity over 50 years. That is a development-wide preliminary assessment, not a lot-specific report, so a lender or a builder may still want one for your building envelope.
- For construction lending: approved plans, a fixed-price contract, the builder's credentials and insurance, and a budget with contingency.
When to get pre-approved
Before you make an offer if you can, and in any event during the rescission window. Under section 21 of the Real Estate Development Marketing Act a purchaser may rescind the contract by serving written notice on the developer or the developer's brokerage within 7 days after the later of the date the contract was entered into and the date the purchaser received the Disclosure Statement. If a purchaser rescinds, the deposit must be returned promptly. Seven days is not long to arrange land financing from a standing start, which is the argument for talking to a mortgage broker who has actually placed raw land in the Islands Trust area before you go looking at lots.
What to do next
Get a broker's read on your borrowing capacity, decide whether the money comes from a land mortgage or from equity you already have, and price the build alongside the lot. Then ask us for the Disclosure Statement so your lender and lawyer can read the same documents you are.
Related guides
This is not an offer for sale. Any such offering may only be made with a disclosure statement. E.&O.E.