Fund land subdivisions to unlock equity and add value to your property


Wide range of options

Land subdivision loans from $100k to $50 million, Flexible terms from one week to 1 year.No Doc No Credit Checks, Low rates Starting from 3.95% PA.

 Land financing is available in Melbourne, Sydney, Brisbane, Adelaide, Perth, Hobart and all across Australia. No Doc No credit checks! Lowest rates and guaranteed results!

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Loans for land development or subdivision on your terms!

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Create new allotments for sale now. 

Fast, transparent non-bank lending

Non-bank lenders offer property, land subdivision loans and development funding. One of the most demanding matters a person can do is grow a business from nothing to success. It takes total commitment to succeed, and even then, it’s not guaranteed. Our team understands your background and your problems.

Growth requires time and unwavering dedication, as well as money. Zip Funding is here to help.
We are a business lender founded by entrepreneurs for entrepreneurs. Business development is our expertise. Finding the capital you need to take your business to the next level is as easy and quick as possible. Look no further!

Financing property development?

It is a common misconception that profitable land development requires construction of houses. Property value is largely determined by the land, not by the buildings.

Land subdivisions are often considered less risky and more profitable than building houses and developing land. The project timeframe is shorter. Property developers have two options for creating value from land: either subdivide and build or create and sell new bare land lots.

Zip Funding can help you with any scenario.
It can be hard to obtain property development finance from traditional banks and other significant lenders. Their funding options for undeveloped property and vacant land are limited.

In addition to raising development finance, there are a number of factors at play with land subdivision. Council approvals when building, including comprehensive planning permits and Statements of Compliance. When everything goes smoothly, the procedure can take between 12 and 18 months.

Subdivision costs aren’t insignificant either. Plans, permits, consultants’ fees, and application fees for a backyard subdivision can total $50,000, including a complex multi-unit development. Then there are onsite costs like drainage, electricity, fencing, water, and driveways. This cost will apply whether you’re building or selling undeveloped land.

Zip Funding understands all the common pitfalls associated with land subdivision loans in Australia. With all the resources available to us, we will work with you to increase the return on your investment.

What are the different types of land subdivisions?

You own a property that you want to turn into real estate. You intend to build homes and sell them to individuals. You will need to subdivide it into lots to get everyone’s puzzle.

By subdividing your land, you will be able to issue titles to each section buyer. There is, however, a legal process. A subdivision certificate must be obtained from the local authority.

The certification process determines whether your property meets the subdivision requirements. Among the aspects of certification is the type of subdivision you wish to perform on your property. What are the types of subdivisions permitted by law? Here they are: The following are some examples:

Residential and settlement subdivision

You most likely own a piece of land in a given area that you’d like to convert into a residential area. You are looking to build new settlements. For residential and accommodation subdivisions, a subdivision certificate is required. Before granting you a certificate, the authority will assess many aspects of the subdivision.

As an example, it will study the potential impacts of the move on the environment, landforms, water, and hazards. Your request will not be granted if it affects biodiversity, such as fauna or endangered species.  

This type of development has a high effect as it is a first-time development. This requires a thorough assessment before a compliance certificate can be issued.

Infill Development

Perhaps you were looking to subdivide a residential property. Possibly you have a commercial building. As a result of changing your business model, you want to divide it.

When this is the argument, you will need a development subdivision certificate. Filling or subdividing existing spaces requires this certification. Your action will have minimal effects since there has been a previous subdivision. Therefore, the application process may not be rigid or time-overwhelming.

Rural Land Development

Would you like to subdivide high-intensity land or lifestyle blocks? Rural subdivisions are a great choice. Rural subdivisions involve lands in rural areas. Either you wish to subdivide your land and sell it as lots or give the lots to your children, each with a separate title.

It is essential to be considerate of your neighbours when using your land. There are regulations and laws regarding what you can and cannot do with your property. You cannot, for instance, put some fences or greenery on the ground. Additionally, the rules limit the minimum acreage you can subdivide.  

Torrens Title land development

 You enter into a multi-ownership agreement when you buy an apartment. Both you and your fellow buyers are private owners. You also have joint rights to the virtual spaces in the property, such as the driveways and lifts. Each unit owner is entitled to a title.

The developers setting up this property must establish management that indicates the use and development of spaces that unit owners share. To issue a unit title, the local council evaluates whether the building meets the legal requirements

Sensitive location subdivisions

These subdivisions involve sensitive areas. The development of these areas will harm the environment. These include coastal areas, wildlife reserves, and lands with exceptional features.

Subdivisions in these areas can be challenging due to the harsh impacts. Significant developments, such as public utility stations, can be approved under this classification.   

Dedicated subdivisions

As a landowner, you might have a reserved space on your property. It may be that your client’s lease ended, or you wish to change your allocation. Subdivisions of this nature fall under the specialized category. Assignments and allotments have little impact on the environment. The land had already been used, so there was little change.

For the property to undergo your intended changes, you must get a certificate from the local city council.   

The cross-lease subdivision

Cross lease properties are probably familiar to you. In this case, multiple individuals own an undivided land share, which they lease from other owners for 99 years. The leasing owners develop the leased land.

You may be able to expand or build an extension to your home if you purchase this type of land. Additionally, it is cheaper than other types of land. Modern developers no longer use this system of land ownership. If you subdivide the property, you can change it from a cross lease to a freehold.

It would help if you used the cross lease subdivision when you want to expand or alter structures on the leased property. Before a cross-lease subdivision exercise certificate can be granted, the council must ensure that the buildings comply with the laws.  

Adjustments to boundaries


It would help if you redrew the land boundaries when you purchase it. This will help you determine whether the property meets the requirements and is suitable for the intended use. The local council must certify the new allotment boundaries. As a minor task, it does not adversely affect the environmeApproval will be easy and quick.

Bottom Line

In a word, subdividing land or property can be a tricky affair. Without the correct information on the type of subdivision you need to comply with, the process can be challenging. The rejection of your request can kill your joy when acquiring the property. The above information is crucial if you plan to subdivide your property.

Types of land subdivision financing options?

  • Make use of a home loan. When you subdivide your block, you won’t have to wade into the highly specialized world of commercial finance. A typical home loan may cover your costs. If you plan on building on the subdivided lots, some loans will include construction loans. Progress draws allow you to pay your contractor at pre-established stages of the construction process.
  • Release Equity from your mortgage. Many of you can refinance your home loan if you have paid off most of your mortgage and have a lot of equity top-up, or refinance of an existing mortgage may be able to fund smaller projects.

No matter what kind of finances you prefer, a subdivision loan can cover:

  • Dividing a piece of land, including all charges that affect
  • Building foundation required for your subdivision application to be approved
  • Demolishing a pre-existing home on the property
  • Covering your surveyor’s costs
  • Constructing new homes on the subdivided lots

 Subdivision loans are typically secured by an existing home on the block or by the land itself. As a result, the way these loans are structured varies significantly according to your needs, so talk to a mortgage broker to find the right financing for your subdivision plan

There are some significant benefits to financing development through a residential loan.

  • Interest Rates:  Mortgage lenders typically offer standard home loan interest rates on development mortgages. Commercial loans are more expensive.
  • Secured mortgages: An existing house or the land itself is often used as security for subdivision loans. Occasionally, you can use the homes you plan to build on the subdivided properties as security for the loan.
  • Loan to Value Ratio. Although the amount you can borrow varies depending on the lender and your financial situation, many creditors allow you to borrow up to 90% LVR of the security property or properties.
  • Multiple homes. A subdivision loan is usually available for constructing up to three brand-new homes on subdivided land, or possibly four, depending on the lender. Commercial loans are typically required for more extensive projects.

Lending constraints

You’ll need to notify the lender of your subdivision plans before being granted a development credit. You will be required to provide copies of your local council endorsements, approvals,  assessments, and more during the application process.

What are the steps involved in subdividing a land?

Speak to your local city council. Every council has its rules and constraints:

  • Bare minimum size conditions
  • Zoning regulations
  • Driveway entrance for every lot
  • Sewer and drainage constraints
  • Structure elevation

Submitting a development application (DA) and complying with the council’s regulations can take some time. The subdivision may not be finalized until you meet a list of requirements, such as constructing driveways or drainage systems. A survey is necessary to establish new lot boundaries, while a solicitor can help you apply for new land titles for each lot.

In capital cities, infrastructure fees for water and sewage can set you back tens of thousands of dollars, so the process can be much more complicated than people realize when they first start.

The basic subdivision processes

When considering a subdivision project, you need to be aware of the different subdivision types available. You’ll find that other council areas will have varied requirements for a range of allotment sizes and specifications of the kind of property that can be constructed on each allotment type.

Why should I subdivide a property?

There is a straightforward argument in favour of dividing property. Alternatively, if you own a large property located in an established suburb, you may be able to increase its value by dividing it into separate lots. You can then sell each separately.

However, you do not necessarily have to sell each lot. Instead, you may wish to keep one lot for your use while selling the other two. The possibility of dividing a strata title into multiple titles or creating a separate building lot on land you own is another option for subdivision

What are the benefits of Zip Funding?

Our pre-qualified pool of investors offers fast, transparent non-bank property and development financing.
We always think outside the way property developers and business owners get investment funding. We streamline the lending process by using the latest technology for quick, reliable, and secure construction funding.

Specialists support you to structure your application and provide answers. With all the information we review, we will provide you with precise costings and a timeframe for settlement.

Visit our website for more information!

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