Urgent Short Term Loans to Hold Land Through a DA or Rezoning
Hold the land while the DA or rezoning is decided, then sell or refinance once it is approved
Experts in strategic, short-term finance
A DA or rezoning can take longer than a bank land loan runs. If you need to buy a site subject to an approval, or keep land you already own while the approval is decided, we can fund it in as little as 24 hours.
We lend to developers, landowners and investors across Australia on land awaiting a development application, a planning proposal or a subdivision approval. The loan runs for 1 to 24 months, and interest can be capitalised so you are not paying monthly while the land earns no income.
Why banks hesitate on land awaiting approval
- •In NSW, the benchmark for a rezoning is 320 working days for a standard proposal and 420 for a complex one, which is longer than many land loans run
- •Council can ask for more information, which adds weeks or months to a DA
- •In NSW, an appeal to the Land and Environment Court adds further time
- •Banks value land as it stands and give no credit for an approval that has not been granted
- •Vacant land earns no income, so it often fails a bank serviceability test
Situations we fund
- •An option deed or put and call option that falls due when the DA is approved
- •A land loan that expires before the approval is decided
- •Buying land subject to rezoning, where the seller will not extend the settlement date
- •A co-owner or joint venture partner who wants to be paid out before approval
- •Planner, consultant and survey fees that fall due before the land earns any income
Lending on land before approval
We value the land as it stands today, based on its current zoning and recent sales of comparable land. Where sales show that buyers already pay more for land with clear rezoning potential, that is part of today's market value. We never lend on the value the land will have once approved, which keeps the loan realistic if the approval takes longer than planned, or is refused.
Timeline to funding
First call. Tell us about the land, the approval you are waiting on and the date you need the funds. An indicative offer comes back within hours.
Valuation. We inspect the land and review the zoning, the DA or planning proposal, and any council correspondence.
Letter of offer. When you accept the terms, the letter of offer goes out straight away.
Settlement. Funds can be available within 24 hours of a signed letter of offer, or timed to an option date you give us in advance.
Documents that help
- •The contract, option deed or title details for the land
- •The DA, planning proposal or subdivision application, with its current status
- •Any council requests for information, or appeal documents
- •Your planner's estimate of the approval timeline
- •Your plan for repaying the loan once the approval is decided
Loans that suit land awaiting approval
- •First mortgage: over the land itself, for a purchase or a refinance
- •Second mortgage: behind an existing land loan, to cover a shortfall or holding costs
- •Bridging loans: to settle on the land before another property sells
- •Secured business line of credit: to draw for rates, land tax and consultant fees as they fall due
Terms for land awaiting a DA or rezoning
| Loan feature | Detail |
|---|---|
| Loan size | $250,000 to $10,000,000 |
| Interest rate | From 9.7% p.a. on a first mortgage, from 11.95% p.a. on a second mortgage |
| Term | 1 to 24 months, interest only. Interest can be capitalised while the land earns no income |
| Maximum LVR | 70% of the lower of the assessed value and the price on a purchase, or of the assessed value on a refinance |
| Security | A first or second mortgage over the land, and over other property you own if needed |
| Settlement | From 24 hours |
Repaying once the decision is made
Most loans on land awaiting approval are repaid in one of three ways: selling the land with its approval in place, refinancing to a bank or construction lender once the DA is granted, or selling another property. If the approval is refused or delayed, tell us as soon as you know, so we can work through a sale, a revised application or a longer term with you.
Development sites we have funded
“Most of the land loans we write while an approval is pending come down to one question: what happens if the approval takes longer than the planner's timeline. We lend on the land as it stands, set the term with room for delays, and review the repayment plan if the timeline changes. Setting the term that way means the owner can keep the land instead of selling it before the approval is decided.”
Gino Tabila
Associate Director
Frequently Asked Questions
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Case Studies
$400K Second Mortgage Repaid in Full After a Flexible Two-Month Extension
$1.8M First Mortgage Releases $980K of Working Capital for a Solar Business
$2.3M Second Mortgage Refinances an 18% Facility for a Glass Manufacturer
$800K Bridging Finance for Simultaneous Property Transactions in 48 Hours
$300K Second Mortgage for Dental Practice Working Capital in 5 Days
$700K Working Capital for a Technology Start-Up Settled in 72 Hours
$3M Working Capital for IT Business Expansion Settled in 2 Business Days
$1.9M Commercial Property Acquisition for Growing Doggy Daycare Business
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Other Urgent Loans We Fund
Each page covers one deadline: what we fund, what to send us and how quickly we can settle.