Who this is for
- Small developers buying a site they plan to develop once approvals are in place
- Investors considering DA approved site finance to buy a site with approval already granted
- Landowners planning to hold a site while a rezoning or subdivision is worked through
- Buyers exploring a site acquisition loan and unsure how it differs from a vacant land loan
Land bank loan Sydney: what land banking finance is
Land banking means owning a site now and developing, selling or repositioning it later. The finance is different from a home loan because there is no dwelling to live in and often no income from the land. Repayment usually relies on a later sale, a development loan or other funds.
These are generally business or investment-purpose loans, which may be assessed and regulated differently from consumer home loans. Some scenarios are arranged through Mortgagefy's lender panel and aggregator, and suitability is assessed case by case. Ask us how your project would be treated. If you want to buy land to build your own home, see vacant land loans instead.
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
DA approved site finance versus a site with no approval
A site that already has development approval is usually easier to assess than one that does not, because the permitted use is known. A site still awaiting a DA or rezoning carries planning risk, and lenders may treat it more cautiously or decline it. Policy varies by lender and project.
- Approved sites: lenders may look at the consent, its conditions and its expiry
- Sites awaiting DA: expect closer scrutiny of the planning pathway and timing
- Rezoning: outcomes are uncertain and can take a long time, so plan for the possibility of delay or refusal
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
Site acquisition loan: interest servicing while you hold
Holding a site means carrying interest, rates, land tax and insurance. Depending on the lender, interest may be paid from your own cash flow, capitalised into the loan, or held in a reserve, and each option has trade-offs. Terms vary.
Work out how long you could comfortably hold the site if approvals take longer than planned. Use our Sydney home loan calculators to test holding-cost scenarios, and speak to your accountant about land tax and other tax effects. We do not give tax advice.
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
Exit strategy: how the loan is repaid
Every land bank loan needs a believable exit. Common paths that borrowers consider include selling the site with approval, refinancing into a development facility, or building and selling the result. See small development finance, subdivision loans and townhouse development finance for the stage after acquisition. Some projects may not suit a bridging approach; bridging home loans explain another short-term option.
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
Risks to weigh up
Land banking can lose money. Points to weigh include:
- Planning delays or refusals, which extend holding costs
- Land value movements while you hold
- Interest and fees continuing with no income from the site
- Lenders changing their appetite for the project between acquisition and development
- Legal, planning and tax outcomes, which your solicitor, accountant and council should advise on
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
How it works: 4 simple steps
Describe the site
Share the address, zoning, DA or rezoning status, purchase price and your timeline.
Discuss holding and exit
We talk through how interest could be serviced and what your exit may be.
Panel and aggregator options
Where suitable, we explore options through our lender panel and aggregator. Eligibility varies.
Prepare the application
Contract, planning documents, budget and financials are assembled for the lender's assessment.
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
Get your personalised answer in 2 minutes
Free, no obligation. We'll explain how your project may be assessed.
Frequently asked questions
What is a land bank loan?
Can I get DA approved site finance?
What is a site acquisition loan?
How is interest handled while I hold the land?
Is a land bank loan the same as a vacant land loan?
Who advises on planning, tax and legal matters?
General information, reviewed 1 October 2026. Policies, government schemes and lender participation may change.
Confirm current requirements and lender participation directly with your chosen provider before applying.
Development lending is higher-risk. Get independent legal and accounting advice before you commit to a purchase, contract or loan. Mortgagefy does not fund projects itself and does not give tax, legal or planning advice.
This information is general in nature. Policies vary by lender and change frequently. Confirm current requirements with your chosen provider and seek professional advice.
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
Ask how your site would be treated
Tell us about the site, the approval stage and your exit. We will explain what lenders may look at and which options may suit.
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.