A site to settle now, and a construction loan that comes later.
- Indicative assessment within 2 business days of receiving the contract, the planning documents and your financials
- Land loans from $250K to $10M, usually interest-only while the site is held
- Developers, builder-developers and businesses buying land for their own premises
- Sites with an approved development application (DA), sites suited to a complying development certificate (CDC), and sites still working through planning
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) and no-doc options across our 90+ lender panel
Contracts are exchanged and the settlement date is fixed, but the construction loan cannot be finalised until the plans, the builder's contract and the costings are complete. A land loan funds the purchase of the site itself and carries it until the build is funded or the site is sold. Most are interest-only for a short term, because vacant land earns no income and the intention is to replace the loan rather than pay it down slowly. Lenders look closely at the planning position, the value of the land as it stands today and how the interest will be met while you hold it. Joseph Farhat and his team review the contract and the approvals, then tell you what is achievable before the settlement date.
Who we can help access finance
- Developers who have exchanged on a site with an approved development application and must settle before construction finance is in place.
- Builder-developers buying their next site while the current project is still selling down.
- Developers buying a site with an application lodged but not yet decided, who plan to hold it through the approval period.
- Transport, trade and manufacturing businesses buying industrial land to build a warehouse, depot or workshop for their own use.
- Developers whose existing land loan matures before the construction loan is ready, and who need a new lender for the remaining months.
- Developers buying a site to obtain consent and then sell it with the approval in place.
How Land Loans Work
A land loan is secured by a first mortgage over the site and sized on what an independent valuer says the land is worth today. That figure is the basis for the loan-to-value ratio (LVR), the loan as a share of the property's value. An existing approval can support the valuation, and lenders differ on how much weight they give it. Because the land earns no rent, lenders want to see how the interest will be paid. Some accept payments from business income or other rents. Others hold back an amount at settlement to cover interest for a set period, or add the interest to the loan.
The planning position shapes the whole file. A development application (DA) is assessed by the council on its merits against the local environmental plan and development control plan. A complying development certificate (CDC) is a faster combined planning and construction approval for straightforward projects that meet the state codes. NSW exhibited further changes to complying development from 14 May to 24 June 2026, and they are due to be finalised later in 2026, so check the current rules for your site with your planner or certifier. A consent can also lapse. Check the consent's lapse date with your planner, because lenders will want a clear path to construction well before it.
The loan ends one of two ways. Either a construction loan takes over once the plans, contract and costings are approved, or the site is sold. Many construction lenders repay the land loan as part of the first advance and count your equity in the land toward your contribution. Joseph Farhat and his team match the site and the exit to lenders among our 90+ bank, non-bank, and specialist panel, and manage the loan through to settlement. We are a finance broker, not an accountant, planner or lawyer. Land tax, transfer duty and GST on the purchase need to be checked with your accountant and Revenue NSW (or the revenue office in your state).
What Lenders Assess for Land Loans
Planning status
Value as it stands
Interest cover
Holding period
Exit
Your contribution
Background
The Land Loan Process: What to Expect
- Tell Joseph Farhat and his team about the site, the settlement date, the planning position and whether you plan to build or sell. You will hear early what is workable before settlement.
- Send the contract, any DA or CDC and plans, your financials or bank statements, and an outline of the exit.
- We take the file to lenders with appetite for land at this stage of planning, and you usually receive an indicative assessment within 2 business days of the core documents.
- The lender orders a valuation and issues an approval setting out the LVR, rate, interest arrangement, term and conditions. We read it through with you before you sign.
- The site settles and interest is met as agreed. At the end of the term the loan is repaid by the construction loan or by the sale.
Indicative Finance Options
| Lender Type | Indicative Rate | Max LVR | Typical Loan Range | Loan Term | Key Consideration |
|---|---|---|---|---|---|
| Bank | From ~7.5% p.a. | Up to 60% | $250K to $10M | 1 to 3 years | Approved DA, full financials and interest paid from other income usually required |
| Non-Bank Lenders | From ~9% p.a. | Up to 65% | $250K to $10M | 6 to 24 months | Interest-only; sites still in planning considered; alt-doc and low-doc options |
| Private Finance | From ~1% per month | Up to 65% | $250K to $10M | 3 to 24 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
