Land and site finance: land, subdivisions and sites before development

Last updated 6 November 2026 · Reviewed by 360 MMS Compliance

What is land and site finance?

Land and site finance is a loan secured by land rather than by a finished building. It's often the first stage of a development: you buy or refinance the site, hold it while the design and approvals are prepared, then move to construction finance or sell. Some people call it a land loan, site acquisition finance or pre-development finance.

Land on its own doesn't earn rent, and its value depends on what can be built on it, so lenders look at the plan for the site as closely as the land itself.

What can land and site finance be used for?

• Buying a development site: land you plan to build on or subdivide, with or without approvals in place.
• Holding a site through planning: while a development application or planning permit is prepared and assessed.
• Subdivisions: splitting a block into lots to sell or build on.

It isn't for buying land to build your own home. That's a regulated home loan, so talk to your broker about residential options.

How do approvals and planning affect the loan?

Each state and territory has its own planning system, and local councils assess most applications. The names vary: you may hear a development application, a planning permit or a subdivision approval. Whatever it's called, approval decides what you're allowed to build, and that drives what the site is worth.

In general terms:

• Zoning comes first: it sets what kind of use and development may be possible on the land.
• Approvals take time and aren't certain: an application can be refused, delayed or approved with conditions that change the design or the cost.
• Conditions can add costs: for example, contributions, infrastructure works or design changes.

Your town planner or surveyor can explain how the rules apply to your site.

What does the lender look at?

• The site: where it is, its zoning, any constraints and what it's worth now. A valuation is part of the process.
• Plans and approvals: what has been lodged or approved, and the planning risk still to be resolved.
• The plan for the site: what you intend to build or subdivide, and the expected end value.
• The borrowers: individuals, companies or trusts who are Australian or New Zealand citizens or Australian residents, and the project team behind them.
• The exit: how the loan will be repaid, whether by construction finance, a sale of the site or the sale of lots.

The lender will assess your application against its criteria, and each loan is quoted and approved individually.

What does it cost, and what are the risks?

Land and site loans generally cost more than a standard property loan, because land earns no income and its value depends on approvals. Ask about interest, establishment, valuation and legal fees, and any costs if the loan runs past its planned end.

Holding land costs money too. While you wait for approvals, you'll usually pay council rates, land tax where it applies, insurance and consultants' fees. With capitalised interest, the balance grows the longer planning takes.

Tax matters as well. Buying, subdividing and selling land can have GST, capital gains tax or income tax consequences, depending on your situation. Talk to your accountant before you commit.

What are the pros and cons of land and site finance?

Possible pros:

• Lets you secure a site before approvals and construction finance are in place.
• Gives time to work through design and planning.
• Companies and trusts can borrow.
• Interest-only or capitalised interest can ease cash flow while the land earns no income.

Possible cons:

• Planning outcomes and timing aren't certain, which affects both the cost and the exit.
• Holding costs and interest build up while you wait.
• Generally costs more than a standard property loan.
• If approval is refused or changed, the site may be worth less than planned.
• The National Credit Code doesn't apply, so independent legal and financial advice matters.

How do I apply for land and site finance, step by step?

1. Talk to your broker or our team. Share the site, what you plan to build or subdivide, and where approvals are up to.
2. Share the details. The zoning, plans and approvals, the project team, the timeline and how the loan will be repaid.
3. Get a quote. The structure is talked through and the loan is quoted individually.
4. The assessment. The lender assesses the site, the planning risk, the borrowers and the exit against its criteria, and a valuation is part of the process. Every borrower signs a business purpose declaration.
5. The offer. If the loan is approved, you receive a loan offer and documents. Get independent legal and financial advice before you sign.
6. Settlement. The loan settles, and it's later repaid by construction finance, a sale of the site or the sale of lots.

How can 360 Private help?

360 MMS is a mortgage manager, and 360 Private is its specialist private lending offer for business-purpose property projects. For land and sites, we can help with:

• Your scenario: the site, the approvals and the timeline, with you or your broker.
• The whole project: 360 Private also offers construction and residual stock finance, so the later stages can be discussed early.
• The structure: interest-only or capitalised interest, and a realistic exit.
• A quote: each loan is quoted individually, based on the site, the borrowers and the exit.
• Working with your advisers: your broker, accountant, solicitor and planning consultants.
• Getting started: apply through your broker or contact our team directly.

FAQs

Sources and further reading:ATO: Vacant land and subdividing · NSW Government: The planning system · business.gov.au: Choose your funding

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. 360 Private loans are for business purposes only, aren't regulated by the National Credit Code, and are subject to lending criteria; fees and charges apply. Kuone Pty Ltd T/As 360 MMS (ABN 81 621 683 672), Australian Credit Licence 504193.