Pre-DA Land Finance

Securing a development site before the DA is granted is a common position for developers, but it is harder to finance because the upside is not yet approved. Lenders value pre-DA land on its current use, not its development potential, so LVRs are lower and rates higher than for an approved site. The key is finding a lender comfortable holding the land through the approval process. Settled Funding Group works with developers acquiring sites ahead of approval, identifying lenders across the 90+ panel with appetite for pre-DA and rezoning plays. For unique scenarios, we can introduce you to private finance options.

Who This Is For

• •Developers acquiring a site before lodging or receiving a DA
• •Investors buying land with development potential ahead of rezoning
• •Those who need to secure a site quickly while the DA process runs
• •Developers consolidating lots before submitting a combined DA
• •Buyers purchasing land with a planning upside not yet realised
• •Those who need to settle a land purchase before approval is granted

How Pre-DA Land Finance Works

Pre-DA land finance is a holding facility: it funds the acquisition and holding of a development site while the approval process runs, typically over six to 18 months. Because the development upside is not yet approved, the land is valued on its current use rather than its development potential, which means lower LVRs and higher rates than a DA-approved site. The exit is central: most pre-DA facilities are repaid by refinancing to development finance once the DA is granted, or by resale. Joseph Farhat identifies lenders comfortable with pre-DA land and structures the facility around the planning timeline and the exit.

What Lenders Assess for Pre-DA Land Finance

• •Current land value: pre-DA land is valued on its current use, not its development potential. This is the single biggest difference from DA-approved finance and the reason LVRs are lower.
• •Planning controls and likelihood of approval: lenders assess the zoning, the planning controls, and how realistic the proposed DA or rezoning is. A credible planning pathway strengthens the application.
• •Borrower experience and financial position: a developer's track record and financial strength carry more weight where the security is valued conservatively on current use.
• •Holding cost and term: lenders assess the holding cost and the term needed to achieve the DA, typically six to 18 months. The facility must cover this period comfortably.
• •Exit strategy: the exit is critical. Lenders need to see a clear path to repayment, usually a refinance to development finance once the DA is granted, or a resale. Without a credible exit, pre-DA finance is difficult.
• •Lender appetite: LVRs are lower and rates higher than for DA-approved sites. Non-bank and specialist lenders are the primary market for pre-DA land, with more appetite for rezoning plays than major banks.

The Pre-DA Land Finance Process: What to Expect

1. 1.Initial review: Settled Funding Group reviews the site, the planning controls, and the DA timeline. Joseph Farhat identifies lenders comfortable with pre-DA land before anything is formally submitted.
2. 2.Full application prepared with the land title, the purchase contract, planning advice, and income documentation.
3. 3.Valuation on current use: the lender commissions a valuation based on the current use of the land, not its development potential.
4. 4.Formal approval and loan documents issued, then settlement of the land purchase.
5. 5.Transition to development finance once the DA is granted: the pre-DA facility is refinanced to a development loan, or the land is resold. Settled Funding Group manages the transition.

Indicative Finance Options

Pre-DA Land Finance Broker

Funding a site before development approval sits well outside standard bank policy. Most banks will not lend against pre-DA land at meaningful leverage, and the lenders who will price the planning risk very differently depending on zoning, the strength of the DA pathway, and your exit. A scenario one lender declines outright is funded by another that understands speculative land. A broker who knows which lenders have genuine appetite for pre-DA acquisitions saves you weeks of wasted applications, protects your credit file from unnecessary enquiries, and connects you with non-bank and specialist funders most buyers cannot approach directly.

Settled Funding Group represents you, the borrower, not the lender. Joseph Farhat reviews your site, zoning, DA pathway, holding period, and exit strategy, then matches the project to the right lender from our 90+ panel and negotiates terms on your behalf. We prepare and manage the submission end to end, from indicative assessment through to your first drawdown. As a broker, we are typically paid by the lender on settlement, so in most cases there is no direct cost to you. If your project is complex, time-critical, or has been declined elsewhere, talk to us early and we will tell you honestly what is achievable.