Land Finance ACT & Regional NSW

Land finance built around the exit.

Acquisition and hold facilities for development sites across the ACT and regional NSW, structured around the planning stage, holding period and path to construction refinancing or sale.

100+

Lender panel

20+

Years' experience

5.0★

27 verified reviews

Land finance explained

What is land finance?

Land finance is funding used to acquire or hold a site before construction or sale. Lenders assess the current land value, planning position, borrower contribution, ability to service or capitalise interest, and the credibility of the proposed exit.

What we finance

Land finance, structured to your strategy.

The facility should reflect what is happening during the hold and how the debt will ultimately be repaid or refinanced.

Land bank facilities

Acquisition and hold facilities for sites moving through planning, design, subdivision or a defined investment period.

Land acquisition loans

Funding to acquire englobo, subdivision or infill sites, subject to valuation, planning position and lender criteria.

Approval-period bridging

Short-term acquisition finance with a planned pathway to construction refinancing once approvals and other lender conditions are satisfied.

Capitalised-interest structures

Interest may be capitalised where lender policy and the facility allow, preserving near-term liquidity while increasing the loan balance and total funding cost.

Credit assessment

What lenders assess on a land transaction.

Land finance is assessed on more than the site value. A credible submission connects the planning position, holding costs and exit strategy.

Site and planning position

Current zoning, approvals, planning pathway, permitted use and any conditions that affect value or timing.

Valuation and leverage

The lender's adopted value, the requested loan-to-value ratio and the borrower's equity contribution.

Holding period and interest

The expected term, interest-servicing source and whether lender policy permits any interest to be capitalised.

Exit strategy

A realistic pathway to sale, subdivision, construction refinancing or repayment from another identified source.

Sponsor capability

The borrower's development experience, financial position, professional team and capacity to manage delays or cost changes.

Site risks and costs

Environmental, access, infrastructure, tax and professional-cost considerations that may affect the facility or exit.

Why Black Mountain

Why developers bring land deals to us.

We read the structure first

We assess the site, planning pathway, holding costs and exit before approaching the market, so lenders can evaluate a coherent credit case.

The senior runs your file

The principal who structures your land facility runs it through to settlement. No junior handoff.

Canberra-based coordination

Coordination across lenders, valuers and project advisers, informed by local market and planning context in the ACT and regional NSW.

How it works

From first call to settlement.

Initial call

We confirm the site, your strategy and whether the deal fits.

Structuring view

We identify the likely structure, information requirements and realistic lender pathway.

To market

We take the structured facility to the right lenders, not a panel blast.

Settlement

The same senior runs it through to drawdown.

Expert reviewed

Reviewed by George Popadalis

George is Principal and Commercial Finance Broker at Black Mountain Financial. He has more than 20 years' experience across banking and finance and leads the firm's development and commercial property lending work.

George Popadalis

Principal · Australian Credit Licence 570391 · MFAA accredited

View George's profile →

Frequently asked questions

What do lenders require before financing development land?

Requirements vary, but lenders commonly ask for the contract of sale, current valuation information, planning and zoning details, the ownership and borrowing structure, evidence of the borrower's contribution, a cost and holding-period budget, and a clear exit strategy.

Do you lend on raw or unzoned land?

Some lenders consider englobo, raw or unzoned land where there is a credible planning pathway and exit. Available leverage may be lower and due diligence more detailed than for an approved site. Approval depends on the location, zoning, borrower and lender criteria.

Can interest be capitalised during the approval period?

It may be possible where lender policy, leverage and the facility structure allow. Capitalising interest can preserve near-term cash flow, but it increases the outstanding loan balance and total interest cost, so sufficient headroom is required.

How is land valued before development approval?

A lender-appointed valuer generally assesses the site in its current condition and planning position. The valuation may consider comparable sales and relevant development assumptions, but lenders commonly apply their own risk settings to the adopted value.

Can land finance be refinanced into a construction loan?

Yes, a planned construction refinance can form part of the exit strategy. It is not automatic: the construction lender will still assess approvals, plans, costs, builder, presales where required, borrower equity and its other credit conditions at that time.

What exit strategies do land-finance lenders accept?

Common exits include sale of the site, subdivision and lot sales, repayment from another verified source, or refinancing into construction debt. The lender will test whether the exit is realistic within the proposed term and under less favourable timing or value assumptions.

How long does land finance take to arrange?

Timing depends on valuation, legal due diligence, planning complexity, lender type and the quality of the information provided. We establish the critical dates and a realistic finance timetable after reviewing the site and proposed structure.

What deal sizes do you work with?

Our commercial and development work generally starts around $1 million. If a transaction falls outside our usual scope, we will explain that during the initial discussion and, where possible, identify a more suitable direction.

Can GST, land tax and professional costs be included in the facility?

Some lenders may fund or capitalise eligible costs within the approved facility, subject to their policy, the valuation and available leverage. Each cost should be identified in the funding requirement rather than assumed to be covered.

Do you only work in Canberra?

The ACT and regional NSW are our core land-finance markets. We coordinate with lenders, valuers and project advisers across that footprint and may consider transactions elsewhere where the structure fits our practice.