Land-subdivision finance can support eligible projects through acquisition, approvals, civil works or delivery, subject to feasibility and lender appetite.
General information only. Finance is subject to lender criteria, assessment, terms and approval.
Purpose-ledStart with the transaction
TransparentConsider cost and conditions
Case by caseNo blanket promises
At a glance
Where Land Subdivision Finance may fit
Land-subdivision finance can support eligible projects through acquisition, approvals, civil works or delivery, subject to feasibility and lender appetite.
The suitable structure depends on the purpose, requested amount and term, borrower profile, supporting documents, security and a credible repayment or exit strategy.
Common scenarios
Acquisition and project costs
Construction or staged delivery
Refinance, completion or sales-based exit
Assessment
What lenders typically review
Requirements vary, but a well-prepared request usually addresses these fundamentals.
Purpose & timing
What the funds are for, how much is needed and when the transaction needs to complete.
Financial position
Income, trading history, existing commitments, credit profile and capacity to meet the proposed terms.
Security & exit
Available security, current value and debt, plus a realistic repayment, refinance or sale strategy.
Our process
From initial conversation to an informed decision
1
Outline the request
Share the purpose, timing, amount and the background to the scenario.
2
Prepare the information
Confirm the documents and evidence a prospective lender is likely to need.
3
Review indicative terms
Consider the total cost, conditions, risks and exit strategy before proceeding.
Next step
See whether this option may suit your scenario
A short conversation can clarify the information required and the practical pathways worth exploring.
Eligibility depends on the lender, purpose, amount, term, supporting documents, financial position and any proposed security. An enquiry is not an approval.
What will the finance cost?
Rates, fees and other costs vary by lender and risk. Review the complete indicative and final terms, not just the headline rate.
How long does assessment take?
Timing depends on the complexity of the transaction, the lender and whether complete information is available. Approval and settlement timeframes are not guaranteed.
Will alternative documentation be considered?
Some lenders consider alternative evidence for selected scenarios. Requirements still apply, and the lender must be satisfied with the request and repayment pathway.
Indicative product matrix
Land Subdivision Finance — lending parameters at a glance
A practical starting point for discussing your scenario. These are indicative market parameters, not an offer or approval.
Why Zip Funding is different
We are not a bank. We assess the deal, not just the scorecard.
Private lending for business and property transactions that need judgment, flexibility and a bespoke structure.
Zip Funding works exclusively in the private lending space. We are people in business helping people in business and property, and we take time to understand the complete story behind every proposal.
Credit issues, tax debt, limited or unavailable financial statements, unusual security and urgent timeframes can still be considered. We assess the security, purpose, current circumstances, repayment capacity and credible exit strategy, then present the transaction to suitable private investors and non-bank lenders.
Our position is clear.A proposal should be judged on its individual merits — not rejected simply because it falls outside standard bank policy.
Individual assessmentEach transaction is considered on its complete merits, not automatically declined by a standard scorecard.Credit issues consideredDefaults, arrears, tax debt and previous bankruptcy can be explained and assessed in context.Alternative evidenceBank statements, BAS, leases, contracts, valuations and asset position may support the application.Bespoke funding structureWe shape the proposed term, security and repayment pathway around the actual transaction.200+ funding relationshipsAccess to private investors and non-bank lenders with different mandates and risk appetites.Competitive private termsWe seek suitable pricing and conditions for the circumstances, security and required timeframe.Clear before proceedingProposed rates, fees, conditions and required information are explained before commitment.Practical communicationClear updates, realistic expectations and urgent scenarios prioritised where possible.
Tell us the complete story.We will identify the information required and discuss which private funding pathways may fit.
Approval, pricing, LVR, fees, conditions and timing remain subject to the selected lender, valuation, documentation and funds availability.
Indicative leverage / LVR
Up to 80% of acceptable property value in selected cases. Funding is also assessed against total development cost and end value.
Indicative loan amount
$500,000 to $100 million+ depending on project scale and lender mandate.
Typical term
Commonly 6 to 36 months, aligned to the project program.
Security
Development site, approvals, project assets and supporting guarantees as required.
Bad credit or adverse history
Credit issues do not automatically rule out a proposal. Defaults, arrears, tax debt, discharged bankruptcy and other credit events are assessed in context and on their individual merits.
Limited or no financial statements
A lack of full financial statements does not automatically rule out a proposal. Selected lenders may consider bank statements, BAS, leases, contracts, valuations, accountant information, asset position and a credible exit strategy.
Repayment or exit
Presales, completed-stock sales, construction refinance or residual-stock facility.
Assessment focus
Feasibility, approvals, builder, quantity-surveyor reporting, borrower experience and contingency are key.
Timing
Indicative approval timing depends on valuation, documents, lender capacity and transaction complexity. Urgent scenarios can be prioritised.
Flexible assessment when the application is not bank-standard
For Land Subdivision Finance, a lender normally looks beyond a single LVR figure. The site value, cost to complete, approvals, feasibility, builder, contingency and realistic end value must work together. If historical financial statements are limited, current project evidence and a well-supported exit strategy may still create a viable pathway.
Credit events are explained in context, including what happened and what has changed.
Alternative evidence can be used where full financial statements or tax returns are unavailable.
Higher-LVR requests need stronger security, a credible exit and a lender whose policy fits the transaction.
Rates, fees, valuation requirements and conditions are confirmed before proceeding.
Important: LVR means the loan amount as a percentage of the lender-accepted value of the security. All figures are indicative only. Eligibility, maximum LVR, loan amount, security, valuation, documents, credit checks, rates, fees, terms, timeframes and approval vary by lender and applicant circumstances. Independent legal, tax and financial advice may be appropriate.
Subdivision debt needs to accommodate approvals, contracts, civil milestones, valuation updates, contingency and the progressive release of finished lots. The structure should keep the project funded while protecting the exit.
We connect the land debt, civil works, staged drawdowns and lot releases required to move from the current site to registered, saleable titles.
Indicative product matrix
Subdivision finance at a glance.
The adopted structure is driven by site value, approvals, total development cost, market evidence, developer capability and the proposed exit.
PurposeAcquisition, refinance, approvals, civil works, title creation and staged sell-down.
Facility sizeFrom $100,000, with larger development facilities assessed individually.
Indicative leverageUp to 80% of accepted current value in selected scenarios; lower limits may apply.
Loan-to-costAssessed against total development cost, borrower equity and peak debt.
DrawdownsProgressive advances against verified works, conditions and QS or valuer reporting.
InterestServiced or capitalised structures may be available, subject to headroom.
PresalesLow or no-presale positions may be considered where the overall risk supports it.
SecurityUsually first mortgage over eligible Australian real property; additional security may assist.
TermAligned to approvals, civil delivery, title registration and an orderly sell-down.
ExitProgressive lot sales, residual land refinance or another verified repayment source.
*Up to 80% LVR is not automatic and is not the same as 80% of gross realisation value. Higher leverage is generally limited to selected cases with strong approvals, credible feasibility, advanced works, presales, additional security or clear demonstrated value uplift. All figures are indicative and subject to lender assessment and approval.
Funding lifecycle
One facility. Six project stages.
The debt should change with the project rather than forcing every stage into the same risk position.
01 / ACQUISITION
Secure the site
Fund a purchase or refinance existing land debt around accepted current value and the planning pathway.
02 / PRE-DEVELOPMENT
Complete approvals
Cover selected planning, design, engineering and authority costs before civil mobilisation.
03 / CIVIL WORKS
Draw by progress
Advance funds against verified construction milestones, budgets and outstanding cost-to-complete.
04 / COMPLETION
Reach compliance
Fund final works, authority sign-offs, plan sealing and the path to title registration.
05 / STAGING
Sequence the debt
Stage the site where practical so later works follow sales, approvals or established demand.
06 / SELL-DOWN
Release finished lots
Apply agreed settlement proceeds to debt and progressively release lots from the lender's security.
What lenders assess
A credible subdivision file is built from evidence.
Credit teams test the project as it stands today, the cost to reach the next milestone and the exit at peak debt.
01
Land and approvals
Current value, zoning, permit position, conditions, title, services and site constraints.
02
Feasibility
Total development cost, contingencies, tax, professional fees and realistic net realisation.
03
Delivery team
Developer experience, builder or civil contractor, consultants and evidence of equity.
04
Sales and exit
Presales, comparable evidence, absorption, lot-release prices and a credible backup exit.
05
Peak debt
Opening balance, draw schedule, capitalised interest, fees and maximum exposure.
06
Cost to complete
Remaining works, claims, QS evidence, contingency and headroom at every draw.
07
Staging strategy
How individual stages reduce risk, create titles and unlock sales or refinance options.
08
Security position
Mortgage ranking, existing encumbrances, additional security and required releases.
The four-number discipline
Know the four numbers before seeking terms.
The strongest proposals clearly distinguish current land value from total project cost, gross realisation and maximum debt. Blurring those figures usually creates the wrong facility request.
01
As-is land value
The accepted current value of the site in its present approval and physical condition.
02
Total development cost
Land, civil works, professional costs, authority charges, finance, tax and contingency.
03
Gross realisation value
Evidence-based gross value of the completed lots before sales costs, tax and debt repayment.
04
Peak debt
The maximum facility exposure after opening debt, drawdowns, interest, fees and retained amounts.
Illustrative project example
An approved 18-lot residential subdivision.
The example shows how the current land value, existing debt and remaining civil costs can be combined into a staged facility. It is illustrative only and is not a representation of a funded transaction.
Indicative facility structureIllustrative only
Accepted current land value$4,000,000
Existing land debt to refinance$1,400,000
Civil works and professional costs$1,100,000
Interest, fees and contingency allowance$400,000
Indicative peak facility$2,900,000
Illustrative peak LVR72.5%
Primary exitProgressive lot settlements
The adopted value, facility, draw schedule, interest allowance and release prices would be confirmed through lender assessment, valuation, legal review and verification of costs.
How the facility operates
A staged path from brief to debt release.
Preparation at the start prevents pressure at the drawdown and settlement stages.
STEP 01
Project brief
Confirm ownership, purpose, approvals, requested amount, timing and the proposed exit.
STEP 02
Feasibility review
Reconcile sources and uses, development costs, GRV, borrower equity and peak debt.
STEP 03
Indicative terms
Match the site and project stage with appropriate lender appetite and facility mechanics.
STEP 04
Approval and settlement
Complete valuation, legal due diligence, conditions, security and initial advance.
STEP 05
Progress draws
Fund verified works while maintaining cost-to-complete, contingency and covenant headroom.
These examples describe common structures only. They are not claimed client transactions and do not represent approval.
Structure 01
Land refinance before works
Purpose
Replace maturing land debt and fund selected pre-development costs.
Focus
Current value, permit pathway, equity and time to civil commencement.
Exit
Construction facility once conditions and contracts are ready.
Structure depends on accepted security value and a credible approval programme.Structure 02
Civil works facility
Purpose
Refinance land debt and fund verified civil construction in stages.
Focus
TDC, fixed-price exposure, QS reporting, contingency and peak debt.
Exit
Progressive lot settlements under agreed release prices.
Draws remain subject to lender conditions and satisfactory cost-to-complete.Structure 03
Multi-stage subdivision
Purpose
Deliver early stages while later stages remain as residual security.
Focus
Stage economics, shared infrastructure, presales and sequencing risk.
Exit
Stage settlements, residual refinance or retained development land.
Stage boundaries and shared-cost allocation must be clearly documented.
Why Zip Funding
Commercial thinking for development debt.
Subdivision finance works best when the request reaches lenders with the important numbers reconciled and the delivery risk clearly explained.
01 / STRUCTURE
Project-first assessment
We start with the site, approvals, civil programme, peak debt and exit—not a generic loan amount.
02 / ACCESS
Broad lender pathways
Bank, non-bank and private-credit structures can be considered around the project stage.
03 / DELIVERY
Drawdown awareness
We account for verification, cost-to-complete and the practical conditions that govern each advance.
04 / EXIT
Lot-release logic
Release prices and settlement proceeds are addressed before they become a pressure point.
05 / CLARITY
Evidence-led proposals
The funding request is organised around the lender's real credit questions.
06 / COVERAGE
Australia-wide enquiry
Metro, regional and selected rural-edge projects can be assessed on their merits.
AS
Direct project discussion
Talk through the site before committing to the structure.
A subdivision brief is stronger when the land position, cost plan, approvals, delivery team and exit are tested together. Discuss the transaction directly with Aaron Sterenzon and receive a clear view of the information lenders are likely to require.
The right facility is the one that still works at peak debt, through final civil claims and into the lot-release programme.
What to prepare
A complete file gets a clearer answer.
Early indicative feedback may be possible with a concise package. Formal approval requires verification and supporting evidence.
Property address, title particulars, ownership and current debt position
Planning permit, endorsed plans, permit conditions and authority correspondence
Detailed feasibility including tax, professional costs, contingency and finance
Civil contract, quotes, tender comparison and project programme
Valuation, comparable lot evidence, sales schedule and presale contracts
Borrower, guarantor, developer and contractor background
Source of equity and evidence of funds already contributed
Proposed draw schedule, staging plan, release prices and exit strategy
Frequently asked questions
Subdivision finance, answered clearly.
Can subdivision finance cover both land and civil works?
Yes, selected facilities may refinance or acquire the land and then fund civil works through staged drawdowns. The lender will test current value, equity, total development cost and peak debt.
Is up to 80% LVR the same as 80% of GRV?
No. LVR normally refers to the adopted security value at the relevant stage. GRV is a separate feasibility measure. Lenders may also apply loan-to-cost, peak-debt and debt-coverage limits.
Are presales always required?
No. Low or no-presale structures may be considered where location, equity, approvals, market evidence, stage size and the overall exit support the risk.
Can interest be capitalised?
Selected facilities may include an interest allowance. Sufficient headroom must remain for interest, fees, contingency and cost-to-complete throughout the term.
How do progress drawdowns work?
Advances are generally released after verification of completed works, compliance with facility conditions and confirmation that the remaining undrawn funds are sufficient to complete the project.
How are lots released from the lender's mortgage?
The facility documents establish release conditions and minimum debt-reduction amounts. At settlement, agreed proceeds are applied to the loan and the relevant lot is released from security.
Ready for a structured view?
Bring the site, feasibility and exit together.
Share the current debt position, approvals, development cost, stage plan and proposed exit. We will assess the structure and explain the next information required.
