Land bank loans for developersfunded on the feasibility, not pre-sales alone
Land bank loans in Australia: typically $500k to $50m+ at 50–65%, over 12–36 months, settling in 14–42 days once security and entity documents are in hand. Holding finance over englobo or DA-stage land that produces little or no income while approvals or market timing play out.
- Feasibility reviewed before it's shoppedWhat we bring
- Direct access to development credit teamsWhat we bring
- Placed across banks and private lendersWhat we bring
Indicative terms in three minutes
Business-purpose and investment finance only. No credit check at this stage.
“Private money will wipe out our margin”
We hear this constantly. The honest answer is that it depends on security, exit and documentation — which is exactly what the enquiry form asks — and that the lenders on our panel — banks, private lenders and specialist funds alike — price those three things, not the label on the borrower.
“We'll lose the site if this drags on” — a fair concern, and one we address in writing before any application is lodged.
“Non-bank lenders don't understand development” — a fair concern, and one we address in writing before any application is lodged.
“Mezzanine debt is too expensive to bother with” — a fair concern, and one we address in writing before any application is lodged.
Typical pain points: Bank wants pre-sales we don't have; Feasibility doesn't fit the bank's template; Settlement date won't move for anyone; Equity gap between debt and total cost; Construction lender pulling out mid-build; As-complete valuation came in low. What we bring: feasibility reviewed before it's shopped, direct access to development credit teams, placed across banks and private lenders.
How we work.
From the first call to the final drawdown, each step is led by a principal — not a queue.
Tell us the scenario
Purpose, amount, security and timeframe — the qualifier takes about three minutes and every answer maps to how our lender panel assesses land bank loans.
Indicative terms
A specialist reviews the scenario and comes back with an indicative structure, pricing range and the documents needed. Urgent scenarios get a call within minutes during business hours.
Credit and valuation
The lender assesses security, entity and exit. For land bank loans this is typically 14–42 days end to end.
Settlement
Solicitors settle, funds are released, and the deal is tracked to its exit in our CRM so refinancing or the next facility is ready before the term ends.
Questions we are asked.
Can I get construction finance without pre-sales?
Yes, though the lender panel narrows to private lenders and specialist funds prepared to carry the extra risk, typically on more conservative loan-to-cost terms. Banks generally want a stronger pre-sale position before committing. Without pre-sales, the feasibility, the builder's track record and the as-complete valuation carry more of the weight.
What if my current construction lender won't extend the facility?
A residual stock facility can fund completed but unsold stock, giving you time to sell at full value instead of a forced discount to meet the original maturity date. We look at the sell-down plan and current market conditions and place the file before the existing facility runs out, not after.
Can gap funding cover the difference between senior debt and total project cost?
Mezzanine or preferred equity sits behind a senior construction facility to bridge that gap, priced for the extra risk it carries and typically repaid from project proceeds on completion or sale. It suits developers who would rather pay for the gap than bring in a further equity partner.
Will a slow bank turnaround cost me the site?
It can, which is why private lenders and specialist funds are often the better fit when a settlement date is fixed and a bank's timetable doesn't allow for it. We place the file with lenders who can turn around a feasibility review quickly, without skipping the assessment a bank would eventually make anyway.
Do I need a full development track record to get construction finance?
Not necessarily, though a first-time developer usually needs a stronger pre-sale position, an experienced builder attached to the project, or additional security to offset the lack of history. Lenders assess the project and the team behind it together, rather than the developer's history on its own.
What's the difference between a land bank loan and construction finance?
A land bank loan holds a site through approvals or a holding period before building starts; construction finance funds the build itself, drawn in stages against progress. Many projects move from one facility to the other as the site moves from holding to construction.
How fast can land bank loans settle?
Typically 14–42 days from a complete application, depending on valuation, legal and lender workload. Speed depends on how quickly security and entity documents are available.
How much can I borrow with land bank loans?
Our panel typically funds from $500,000 to $50,000,000+, at 50–65%. Larger or more complex facilities are structured case by case across banks, private lenders and specialist funds.
What security is needed?
First mortgage over the land. The stronger and more liquid the security, the sharper the pricing.
Is this a consumer loan?
No. Solara arranges business-purpose and investment-purpose finance only. If your purpose is personal or for owner-occupied housing, this product is not suitable and we will say so.
Related finance.
Not quite the right product? Every loan type we arrange.
Most scenarios can be structured more than one way. Browse the alternatives, or tell us the situation and we'll recommend the structure.
Business cash flow
Property-backed
Development
- Construction finance
- Mezzanine & preferred equity
- Land bank loans