Buying a farm or lifestyle block
Finance and settlement for a farm purchase
Doug Wakelin, Rural/Lifestyle Sales Consultant, Property Brokers Te Awamutu
Short answer. Between a signed offer and settlement you'll normally deal with your lender, a valuation, your due diligence conditions, GST and the possession date. Banks assess farm lending case by case, and lenders such as BNZ publish different programmes for first-farm buyers. Line up your lender and solicitor before you offer, not after.
Timeline of a typical conditional purchase
| Stage | What happens | Who |
|---|---|---|
| Before offering | Pre-approval conversation, budget, GST advice | You, lender, accountant |
| Offer signed | Conditions listed with dates (finance, LIM, valuation, due diligence) | You, solicitor |
| Conditional period | Valuation, LIM, farm inspection, consent checks | You, advisers |
| Unconditional | Conditions confirmed. Deposit paid as the agreement says. | You, solicitor |
| Pre-settlement | Final inspection, stock and chattels, insurance in place | You, solicitor |
| Settlement and possession | Funds transferred. Keys and farm records handed over. | Solicitors, lenders |
Finance, honestly
- ANZ and Rabobank don't publish a fixed deposit percentage for farm purchases. They assess lending, limits and equity case by case (ANZ agribusiness, Rabobank, checked 2 Nov 2026).
- BNZ has described a First Farm programme with a lower minimum deposit for eligible first-time dairy farm and herd buyers (BNZ). Terms and eligibility change, so confirm them with BNZ or a broker.
- Lifestyle block lending is a separate topic, and lenders can treat blocks differently to houses. Ask your lender or broker early about their policy.
- Bayleys' October 2026 note says targeted lending support is helping next-generation buyers (Bayleys).
Things to line up for settlement
- GST. Confirm the position in writing. See GST on rural property.
- Possession date. Fit it to the farm calendar: calving, lambing, shearing, weaning, winter feed.
- Stock, plant and chattels. A list with values, agreed by both sides.
- Farm records. Soil tests, fertiliser history, stock records, consents, effluent documents, farm maps, contracts.
- Insurance from the date of risk passing.
- Utilities, rates, supply contracts transferred. If the farm supplies dairy, talk to the dairy company about supply. Fonterra shares are a financial matter, so ask an authorised financial adviser and Fonterra directly.
- Consents: ask the councils what notice they need when ownership changes.
Check before you rely on this
General information only, not financial, legal or tax advice. Talk to your lender, accountant and solicitor.