Land Banking & Site Acquisition Finance – What to Expect in 2026
Glenclair Financial | August 2026
Land banking (holding commercially zoned or development sites prior to construction) attracts more conservative leverage and often higher pricing than completed commercial assets or active construction facilities. Figures are struck against as-is value, not development cost or GRV.
Typical market parameters
| Land status | Typical max LVR | Indicative rate range | Term | Lender appetite |
|---|---|---|---|---|
| DA-approved, ready for construction | Up to 60–65% | 7.25 – 9.5% | 12–24 months | Broadest (banks + non-banks) |
| Commercially zoned, no DA | 50–60% | 8.5 – 10.5%+ | 12–36 months | Non-banks and specialists stronger |
| Speculative / longer-term hold | 40–55% | 9.5 – 12%+ | 12–36 months | Primarily private / specialist |
Example – $8m DA-approved industrial site
- Loan: $4.8m (60% LVR)
- Rate: ~8.75% (specialist non-bank)
- Term: 18 months interest-only (capitalised)
- Approximate interest cost: ~$595,000 + 1–1.5% establishment fee
Key points
- Planning approval is the single largest driver of terms.
- The practical structure is often a pre-DA facility (40–55% of as-is value) that is refinanced into a construction facility once approval is secured.
- Underwrite the construction take-out at the same time as the land facility, not after DA approval.
Glenclair can structure both the land facility and the construction take-out together so the exit is clear from day one.
Contact us for a confidential review of your position at info@glenclair.com.au.
This update is general information only and does not constitute financial, investment, tax or credit advice. It does not take into account your objectives, financial situation or needs. Figures are indicative as at August 2026, are subject to change, and lending terms are set by individual lenders on a case-by-case basis. You should seek professional advice before acting on any information contained in this update.