Land Acquisition Finance

Securing a development site is often the first and most time-sensitive step in any project. Whether you need to move before DA is granted, consolidate multiple lots, or simply settle faster than your bank allows, land acquisition finance gives you the certainty to commit. Settled Funding Group arranges land acquisition finance through bank, non-bank, and specialist lenders, and for unique scenarios we can introduce you to private finance options.

Who This Is For

• •Developers wanting to secure a site before DA is granted, where standard development finance is not yet available
• •Investors purchasing land in a growth corridor ahead of development, with a medium-term hold strategy
• •Those buying at auction where a fast settlement is required and the bank cannot move in time
• •Developers consolidating multiple adjacent lots for a larger project, where the aggregation cannot wait
• •Borrowers whose primary construction or development finance is delayed and who need a bridging facility to fund the land purchase in the interim
• •Those buying a site with a clear development upside that standard bank lenders will not yet fund at full value

How Land Acquisition Finance Works

Land acquisition finance sits between a standard land loan and a full development facility. It is designed for borrowers who have identified a site but are not yet at the stage where construction finance applies. Joseph Farhat reviews the site, the DA status, and the borrower's exit strategy, then identifies lenders on the 90+ panel whose policy aligns with the project stage and site characteristics. Pre-DA sites are assessed more conservatively than DA-approved land, which affects both the LVR and the lender pool.

A useful example of how site and development timing can be structured: read the Wallsend townhouse case study, which shows how specialist finance enabled a developer to secure a site and move through construction using a non-bank lender before transitioning to a long-term investment structure. The same sequencing applies when land acquisition finance is used to hold a site ahead of DA approval.

What Lenders Assess for Land Acquisition Finance

• •Development potential: lenders review the site's zoning, planning controls, and any existing DA or development upside to establish the credibility of the exit strategy.
• •LVR against current land value: pre-DA land is assessed on its current unimproved value, not the projected development value, which means LVR caps are tighter than for DA-approved sites.
• •Developer experience and financial position: lenders want to see that the borrower has the capability to progress from land acquisition to development or resale.
• •Exit strategy: the clearest exit is either a sale of the site after DA is granted, a refinance to a development facility once approval is in place, or a full development through to completion.
• •Location and planning controls: well-located sites in established urban areas are assessed more generously than rural or fringe sites with limited planning certainty.
• •DA status and timeline: a site with a lodged DA application is more fundable than one at the pre-lodgement stage, and a DA-approved site sits in a different lender pool entirely.

The Land Acquisition Finance Process: What to Expect

1. 1.Initial site and borrower review: Joseph Farhat reviews the site address, purchase contract, zoning and planning information, and the borrower's financial position and development experience. This gives a clear picture of which lenders are appropriate before anything is formally submitted.
2. 2.Lender identification: based on the DA status, site characteristics, and LVR required, Settled Funding Group identifies the lenders on the panel who are comfortable with the project stage and can meet the required settlement timeline.
3. 3.Application preparation: a complete application is submitted with title documents, purchase contract, planning evidence, and income and asset documentation. The package is structured to answer the lender's key concerns upfront.
4. 4.Valuation of land: the lender orders an independent valuation of the site on its current value. For pre-DA sites, the valuation will not include any development uplift.
5. 5.Approval and settlement: once the lender is satisfied, approval is issued and funds are released to settle the land purchase.
6. 6.Transition to development finance: once DA is granted, Settled Funding Group manages the refinance from the land acquisition facility to a full development finance facility, ensuring continuity and minimising double-handling.

Indicative Finance Options

Land Acquisition Finance Broker

Securing a development site is time-sensitive, and lenders vary enormously on how they treat raw land, pre-DA acquisitions, lot consolidations, and fast settlements. Many lenders have little appetite for undeveloped land, and LVRs and terms differ sharply between banks, non-bank lenders, and specialist funders. A developer racing a settlement deadline cannot afford to discover this one application at a time. A broker who knows which lenders move quickly on land acquisition saves wasted applications, protects your credit file from needless enquiries, and reaches non-bank and specialist funders most developers cannot approach directly. For time-critical settlements or pre-DA sites, a broker knows where the deal will actually get done.

Settled Funding Group represents you, the developer, not the lender. Joseph Farhat reviews the site, your timeline, the DA status, and your equity position, then matches the acquisition to the right lender from the 90+ panel and negotiates terms on your behalf. We prepare and manage the submission end to end, and for unique scenarios we can introduce you to private finance options. As a broker, we are typically paid by the lender on settlement, so in most cases there is no direct cost to you. If you need to settle a development site quickly, talk to us early and we will tell you honestly what is achievable.