Land Subdivision Finance

Land subdivision (dividing a more extensive property into smaller allotments for resale) is a promising venture for developers in Australia. However, successfully achieving this involves navigating complex financial and regulatory terrains. Basic Finance Loans (BFL) stands ready to guide you in securing the right land subdivision loan and unravelling these complexities to turn your vision into a reality.

Low Interest Rates

Quick Land Subdivision Finance

Same Day Approvals

No Hidden Fees

Hassle Free Process

Serving Since 2001

Lending All Across Australia

We turn visions into reality by empowering your land subdivision projects with the right financing

Understanding Land Subdivision Finance

Land subdivision finance is a specialised form of lending designed to assist property developers with the costs associated with dividing a larger piece of land into smaller allotments for resale. This type of loan is intended to cover expenses such as survey costs, council application fees, infrastructure costs, and any other costs related to preparing the land for sale or development.

The application process for a land subdivision loan involves providing the lender with detailed information about the project. This includes but is not limited to the project’s plans, council approvals, land surveys, and more. The loan-to-value ratio (LVR) for a subdivision loan typically depends on the specific project and the borrower’s financial situation.

We offer land subdivision loans that are either cost-based (full doc) or gross realisation value-based (low doc). The type of loan that is most suitable depends on the scale and complexity of the subdivision project.

How do Land Subdivision Loans work in Australia?

In Australia, land subdivision finance is a loan designed specifically for people who want to split up a big piece of land into smaller blocks for selling or building. This loan helps cover all the costs of this process, from paying the council for permissions and getting the land surveyed to obtaining the necessary infrastructure sorted.

When you apply for this loan, you’ve got to give the lender a rundown of your project details, including your plans, council approvals, and land surveys. The amount you can borrow usually depends on your financial situation and the specifics of your project. The goal is to make it easier for you to get your land project off the ground and help increase the overall value of your land.

The Loan Application Process

Embarking on a land subdivision project requires rigorous preparation, and securing the necessary financing is crucial to this journey. To be approved for a land subdivision loan, applicants must provide comprehensive information about their subdivision plans, including council approvals, surveys, and more.

For a successful application, developers must obtain approval from their local council. Each council imposes specific regulations and requirements, such as minimum size requirements, zoning rules, driveway access for each lot, sewer and drainage requirements, and building height limits.

Ready to proceed?

Contact us and we will make the business finance process very simple and easy for you!

Subdividing Property: A Pathway to Increased Land Value

The potential benefits of subdividing a property are underpinned by simple economics. Subdividing a large property into several lots often increases the cumulative value of the land, offering a significant return on investment. For example, a $1 million block of land can be subdivided into three lots, each selling for $500,000, increasing the total value to $1.5 million.

Additionally, subdividing your property offers flexibility; you may retain one of the lots for personal use and sell the others. Various subdivision options are available, such as splitting a single strata title into multiple titles or creating a separate lot to construct a granny flat.

Types of Land Subdivision Loans and Finance

The type of finance required to fund a subdivision project largely depends on the project’s scale. Smaller projects can often be funded via a construction loan, a top-up, or a mortgage refinance if sufficient equity is available.

A regular home loan may be sufficient to subdivide your block into two lots. This removes the need to delve into the highly specialised realm of commercial finance. Some loans may also feature a construction loan component if you plan to build new homes on subdivided lots.

For larger projects, more than a residential home loan is required. A more complex commercial loan from a specialist lender may be necessary. Sometimes, you might consider selling the land to a property developer if the project’s scale is beyond your capacity.

Advantages and Disadvantages of Land Subdivision Finance


  • Potential for Increased Profits: By subdividing a large parcel of land into smaller lots, developers can increase the property’s overall value and profitability.
  • Greater Borrowing Power: Since land subdivision loans are calculated based on the projected end value of the project, this can result in greater borrowing power for the developer.
  • Flexibility: Developers can sell, lease, or develop the subdivided parcels depending on their business strategy.



  • Complexity: Land subdivision involves navigating complex local council regulations and zoning laws. This can be time-consuming and requires expert knowledge. As with any real estate venture, subdivision projects carry financial risk. The borrower could face significant losses if the project runs into unexpected issues or if the real estate market declines.
  • Costs: Subdivision projects can incur high charges, including survey costs, council application fees, and infrastructure development costs.

Ready to proceed?

Contact us and we will make the business finance process very simple and easy for you!


With flexible options up funding is possible in 24 hours


Common sense credit approval process. Fast and fuss free funding on your terms


No hidden fees and or charges. Clear & upfront pricing

Success Stories: Case Studies

We have numerous success stories from clients across Melbourne, Brisbane, Sydney, Canberra, Adelaide,  and Perth who could secure loans through us despite being turned down by traditional banks.

Case Study: Finance for Land Subdivision in Melbourne

A client approached us with a project subdividing a large plot into five separate allotments in Melbourne. Despite years of property development experience, this was the client’s first foray into land subdivision. We provided the necessary guidance and support, securing the right land subdivision loan that catered to their financial capacity and ensured smooth navigation through complex regulations. The project was completed, with the client achieving an impressive return on investment.

Case Study: Land Subdivision Loan in Sydney

We worked with a first-time developer in Sydney looking to subdivide a single residential property into two titles. Despite initial apprehensions about navigating the land subdivision loan process, the client found our expertise invaluable. Our team made the process seamless, securing a loan tailored to the client’s needs. The project was a success, illustrating that even those new to property development can successfully subdivide land with the right financial partner.

The Bottom Line

Taking on a land subdivision project in Australia can be exciting and challenging. It requires dealing with complicated rules and financial decisions, but the rewards can be enormous. Increased property value and the chance to make a profit are some of the benefits. Yet, finding the right financial solution, one that fits your project’s size and complexity, is crucial. This is where various financing options can come into play, including quick loans, development loans, and more. Whether you’re experienced in property development or a beginner looking to dive into land subdivision, knowing your way around the financing options can help make your land subdivision project a real success.

Frequently Asked Questions (FAQs)

What is a land subdivision loan?

A land subdivision loan is a specialised type of finance designed to cover the costs of dividing a large piece of land into smaller parcels for resale or development.

How does land subdivision finance work?

Land subdivision finance works by providing the funds needed for subdivision projects. These loans are typically repaid once the subdivided parcels of land are sold or developed.

What are the advantages of land subdivision finance?

The main benefits include the potential for increased profits, greater borrowing power, and flexibility in how the subdivided parcels can be used.

What are the disadvantages of land subdivision finance?

The main disadvantages include the complexity of subdivision projects, the inherent risk involved, and the potentially high costs of such tasks.

How can I apply for a land subdivision loan?

To apply for a land subdivision loan, you must provide your lender with detailed information about your subdivision plans, including council approvals, land surveys, and more. We specialises in providing land subdivision loans tailored to our client’s needs.

Do I need to provide security?

The requirement for security depends on the lender and whether the loan is secured or unsecured. Unsecured loans do not require collateral, while secured loans require a valuable asset as a guarantee.

Talk to a business lending specialist

Leave your details below and one of our Business Lending Specialists will get in touch right away.