Land and subdivision finance

Buying land to subdivide or develop?

Finance to buy development land and fund the consents and civil works needed to create sections. Land loans are usually shorter-term and lend less against value than finance for completed property, because the land earns no income until it's developed or sold.

Talk to an adviser Development feasibility calculator

Who it suits

Buyers of development sites
Landowners subdividing their property
Developers securing land before construction finance

What lenders look at

The land's value and zoning
Your plan and timeline: consents, civil works, then sale or construction
How interest will be met while the land earns no income
Your experience and equity

What to prepare

Tick them off as you go.

Sale and purchase agreement
Title, zoning and planning information
Scheme plan or concept design
Civil works costings and engineering reports
Your exit plan: section sales or construction finance

Questions to ask

How much of the purchase and works will be funded?
Can interest be added to the loan?
What is the maximum term?
What happens if consents take longer than planned?

Everyone's situation is different. Lenders weigh things differently and small details change the answer. An adviser can tell you where you stand with land and subdivision finance and what to do next.

Talk to an adviser

Run the numbers