Commercial property · land banking
Hold the land while you plan the project.
Specialist short-to-medium-term lending for developers acquiring land before development. Higher cost than construction finance reflecting carrying risk. Often refinanced into development finance once project is shovel-ready.
What it is, when it fits
Plain English, with the trade-offs.
Land banking finance funds the period between acquiring development land and starting construction. Lenders apply higher rates and lower LVRs because the land carries no cashflow, no improvements, and no certain exit timeline. Typical land banking loans run 9% to 15% p.a. at 50% to 65% LVR, terms 12 to 36 months. The exit is almost always refinance into development finance once the project is DA-approved and shovel-ready, or sale of the land to another developer. Land banking suits developers building a pipeline (acquiring multiple lots ahead of capacity to develop them all), holding land pending DA approval, accumulating multiple lots for assembly, or holding investment-grade land for long-term value capture. Lender appetite is highly project-specific; geography, zoning, and developer track record all matter materially.
Australian residential development under construction at dusk.
Typical scenarios
Developer accumulating land in growth corridor
Why: Long-term acquisition strategy for growth corridor.
Outcome: Multi-property land banking facility, 36-month term, refinanced as DAs approved.
Holding land pending DA approval
Why: $2M land purchase, 18-month DA process expected.
Outcome: $1.3M land banking loan, 65% LVR, exits at DA approval into development finance.
Accumulating multiple lots for assembly
Why: Adjacent lot strategy for medium-density development.
Outcome: Per-lot land banking facility, consolidated at assembly completion.
Investment land hold
Why: Investor holding regional land for long-term capital growth.
Outcome: $800K land loan, 24-month term, refinanced into long-term investment facility.
Lenders for this product
Who we work with.
- Thinktank
- La Trobe Financial
- Liberty Commercial
- Stamford Capital
- Assetline Capital
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Land profile and exit assessment
We assess the land profile (zoning, DA status, geography), expected hold period, and exit pathway before approaching lenders.
- 02
Lender shortlist
Five specialist lenders cover most land banking. We match deal size and exit pathway to the right one.
- 03
Approval and conditions
Approvals typically return in 2 to 4 weeks. Conditions usually include DA progress reporting, occasional valuation refreshes, and exit-date confirmation.
- 04
Hold and exit
Land banking facility runs through to exit. We support refinance into development finance or sale-driven payout at exit.
Indicative pricing & terms
Ranges, not promises.
Rate range
9 to 15% p.a.
Loan size
$500K to $20M
Term
12 to 36 months typical
Security
First mortgage over the land
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
Why specialist land lending?
Land carries no cashflow and an uncertain exit timeline; mainstream lenders usually won't lend on it at all. Specialist land lenders price the carrying risk explicitly and structure terms around expected exit. Pricing is higher; it's the cost of the niche.
Holding cost calculations?
Total holding cost = interest + opportunity cost + statutory costs (council rates, land tax) + holding-period DA costs. Most projects burn through more on holding cost than the land appreciates over short timeframes; we model this honestly upfront.
Conversion to development finance?
Standard exit pathway. Once DA-approved and shovel-ready, refinance into development finance with a different (often the same) specialist lender. Plan the conversion at land-banking origination, not in the final months.
Interest capitalisation?
Some land banking facilities allow interest to capitalise (added to the loan balance) rather than requiring monthly servicing. Useful when the land has no cashflow but increases total cost; we model both structures.
Exit strategy requirements?
Lenders test the exit at underwriting: planned development with feasibility, sale to another developer with sales evidence, or refinance to long-term facility. Land banking without a credible exit is the wrong product.
Tax treatment of holding costs?
Generally deductible during the holding period if the land is held for development (running an income-producing intent). Exact treatment depends on entity structure and developer status; this is genuinely accountant territory.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for land banking or, if it isn't the right fit, an honest signal of what is.