What these loans are for
A site acquisition loan funds the purchase of a development site. A land bank loan funds holding the site while you work through design, approvals and presales. Both are usually short term, and are repaid by the construction loan once the project is ready to start, or by selling the site.
What lenders look at
- The site's value now, not what it could be worth once built.
- The approval position: sites with development approval are generally easier to fund than sites still going through planning.
- How interest is paid during the holding period: from your income, from rent on the existing buildings, or capitalised.
- The exit: a credible plan to move to construction finance, or to sell.
- Your equity and experience, as with any development loan.
Plan the whole journey
The cheapest site loan isn't always the best one. If the lender who funds the site could also fund the construction, you avoid a second set of fees and valuations. If not, line up the construction lender early so there is no gap between approval and the start of the build.
Common questions
Could I buy a site before development approval?
Yes, but lenders usually lend a smaller share of the value on an unapproved site and want to see how holding costs will be paid. Approval generally improves the terms available.
How long do land bank loans run for?
They are usually short term and set around the time needed for approvals. Your broker should check the term fits your planning timeline with room to spare.
Sources
- ASIC Report 814, Private credit in Australia (22 September 2025), checked 26 October 2026
- ASIC: FAQs, does the credit legislation apply?, checked 26 October 2026
General information only, not credit advice. It doesn’t take your objectives, financial situation or needs into account. Rules and figures change; check them, or talk to Joshua, before you rely on them.