Finance question
Can I get finance to buy a DA-approved development site?
Often yes. A site with a development approval is lent against the land, and the approval lifts how much lenders will fund. Banks lend roughly 60% to 65% of valuation, non-bank lenders 65% to 75% on approved sites, subject to lender assessment, and you cover the deposit, duty and the cost of holding the site.
Get your free rate quote
Tell us a few details and we will come back with your indicative rate. No obligation.
Thanks, we are on it
Your enquiry is in. Our team will be in touch shortly with your indicative rate and next steps.
The short answer
The approval is what the lender is valuing
A development approval turns a block into a counted product, so buyers price the site on the number of approved units, not on the land. In 2026 the Stones Corner site with a DA for 226 apartments sold for $23.159 million, about $102,500 per apartment, and the Joyner site with a DA for 74 townhouses sold for $10.1 million, about $136,500 each (DA-approved sites guide). Lenders value an approved site by residual land value: end value of the scheme, less construction cost, profit margin, finance and selling costs.
How much a lender funds depends on its type. Banks lend roughly 60% to 65% of valuation on a site with a DA, take 6 to 12 weeks and want an experienced developer. Non-bank lenders lend 65% to 75% on approved sites and 50% to 70% on raw or englobo land, with 6 to 24 month terms. A land bank facility for a site still in planning sits around 50% to 55%. The cleanest path rolls the land loan into a construction facility with the same lender once the builder contract and presales are in place.
Two things trip buyers up. The first is the clock on the approval: NSW consents run 5 years by default, while Victorian permits give 2 years to commence, and an approval close to lapsing is worth less than a fresh one. The second is holding cost, which the guide puts at $3,500 to $5,000 a month on a small residential site, before a drawing is lodged. Ventas is a broker across 40+ lenders and charges no upfront fee; the lender pays us on settlement.
Do you qualify?
What a lender asks for on a site purchase.
The consent and its date
The approval notice, when it took effect and how long it has left.
A feasibility with a QS estimate
End value, build cost and margin, so the residual stacks up.
Your equity
Deposit, duty and holding costs, from cash or equity in other property.
The buying entity and track record
Who is buying, and what you have delivered before.
Why an approved site funds differently
Planning risk is removed
Lenders pay more for a site that can start sooner.
Equity can be the deposit
Other property can cover the gap above the advance.
One lender can follow through
The land loan can roll into construction once presales are in place.
A worked example
A developer buys the Joyner-style site for $10.1 million with a DA for 74 townhouses. A non-bank lender at 70% of that price advances about $7.07 million, leaving about $3.03 million plus duty and costs. They cover it with cash and equity released from an investment property. The land loan then rolls into construction once the builder contract is signed. Illustrative only.
Common questions
Frequently asked questions
How much will a lender fund on a DA-approved site?
Banks lend roughly 60% to 65% of valuation, and non-bank lenders 65% to 75% on approved sites, against 50% to 70% on raw or englobo land. A site still in planning sits around 50% to 55%.
How long does an approval last?
NSW consents default to 5 years, Victoria 2 years to commence, Queensland 6 years for a material change of use and Western Australia 4 years for DAP approvals. Check the date before you price a site.
What does it cost to hold a site while I wait?
The guide puts holding costs on a small residential site at $3,500 to $5,000 a month including interest, rates, insurance and maintenance. On a larger site the interest line dominates.
What do I send to get a number?
The contract, the consent notice and its date, the approved plans and yield, a feasibility with a QS estimate, the buying entity, your equity and any other property you hold.