Security
Loans against vacant land
Vacant land you own - or are buying - can secure capital for your company or trust, whether you are funding the purchase, holding the parcel while a plan firms up, or releasing equity from land already on title. Because bare land earns no income and resells more slowly than built property, it is assessed more conservatively, so the advance sits below what the same borrower could raise against a house or commercial building.
Raise capital against your land.
The amount, the asset and the timeframe. We’ll match you with a funder and email you their introduction. Reply to it and they’ll be in touch.
- No cost and no obligation. An enquiry is not a commitment to anything.
- We match you with a funder and email you their introduction. Reply to it and they take it from there.
- Your details stay with us until you reply to the introduction.
Enquire
Send an enquiry
Takes two minutes.
How lending against vacant land works
A land loan is secured against the parcel itself. Where you are buying, that is usually a first mortgage over the land. Where the land is already owned and carries a mortgage, capital can sit behind it - a second mortgage, or a faster caveat loan where speed matters - and bridging finance can cover a settlement gap. The file is judged on the land and a clear exit, not on lodged financials, which is what lets it settle in days where a bank runs weeks.
Bare land is the conservative end of the security spectrum - it earns no income and resells slowly - so the advance is lower than on built property. Where a mortgage already sits on title, combined LVR, measured on the gross balance including capitalised interest and fees, is the real constraint. This page is the by-asset view; the land and subdivision finance pillar covers the same lending by structure.
Why vacant land sits lower - and what lifts the advance
The advance on any security comes down to how deep and quick its resale market is, and whether it earns an income. Bare land does neither, so it is read more conservatively than a house, a shop or a warehouse - and the spread within land itself is wide.
Registered, serviced land in a deep metro market is the strongest: it can be valued, it sells, and the buyer pool is broad. A dated, credible value path lifts the advance from there - a development application or planning permit shows clearly how value is added and over what timeframe. Raw or englobo land with no approval sits lowest, and needs a realistic subdivision or development plan to fund at all. Zoning that allows redevelopment reads more favourably than farming or recreation zoning. Representative ranges sit on the rates and fees page, and every figure is subject to assessment.
What we’ll need to start
Four details get you an indicative answer: the land - title, zoning, location and size - any existing mortgage and its balance, the amount and the business purpose, and the exit. From there it’s 24 to 48 hours from your reply to the funder’s indicative terms, and settlement in days on a clean position.
One honest line: land earns nothing while it sits. Speculative land with no approval path, no servicing route, or no way to carry the holding cost through to a sale, a development takeout or a refinance is not a fit here - that is a conversation for your accountant, a town planner and a surveyor first. Where the equity and the exit are real, tell us what you need and we’ll match you with a funder and email you their introduction.
- Companies, trusts or developers with equity in land and a clear exit
- Borrowers buying, holding (land-banking) or subdividing a parcel for a business purpose
- Time-sensitive land settlements a bank can't move on
- Owner-occupiers buying a block to build their own home (business-purpose only)
- Speculative land with no approval path, servicing route or credible exit
- Borrowers without the equity or contingency to carry the holding cost to exit
Sounds like your situation?
Tell us the amount, the asset and the timeframe. We’ll match you with a funder and email you their introduction.
How it compares
FAQ
Why is the advance on vacant land lower than on a house or commercial building?
Bare land earns no income and resells more slowly, so it is assessed more conservatively. A first mortgage commonly sits up to around 65% of land value, and lower again on raw or englobo parcels, where built property can reach 75% or more.
Can you arrange capital against land that already has a mortgage on it?
Yes, where there is real equity. A second mortgage or a faster caveat loan can sit behind your existing mortgage to release capital, with combined LVR the constraint and the holder of the first mortgage often needing to agree a priority arrangement.
Does a DA or planning permit change what I can borrow?
Usually. Approved land carries a clear, dated path to added value, so it is read more favourably than raw or englobo land and supports a higher advance.
How fast can a land settlement be funded?
Often within days on a clean position with a clear exit. A caveat loan is the quickest route where registering a second mortgage would take a little longer.
Is this for buying my own block to build a home?
No. This is business-purpose lending to companies and trusts. A personal block for an owner-occupier home is consumer lending and not a fit here.
Raise capital against your land.
No cost, no obligation. The form is back up the page and takes two minutes.