Can You Get a Bridging Loan to Settle on a Development Site?

Why banks won't fund this

Banks won't settle quickly on development sites. They require development applications, planning approval, or feasibility studies—all of which take time. Banks move on their own timeline, not the developer's.

How specialist lenders look at this differently

Specialist lenders assess deals using a different framework:

Settlement in 24 hours vs. weeks. Bridging moves at deal speed, not bank speed.
No development approval needed upfront. You can settle on the site and then progress approvals.
Certainty of settlement. If you have bridging approval, settlement happens—no risk of the lender pulling out.

Ready to explore your options?

Tell us about your situation and we'll show you what lenders can offer.

Describe Your Situation

What a typical deal looks like

Illustrative example — not a real case

A developer finds a $400K development site that's being auctioned. The auction is in 2 days. The developer's bank can't move that fast. Bridging is the only option.

A bridging lender approves $300K (75% LVR) at 9.75% p.a. for 6 months. The site settles 24 hours before auction, buyer eliminated. Developer now owns the site and has 6 months to arrange development finance or sell the property. Within 3 months, development finance is arranged at better rates, and bridging is refinanced out.

Typical deal structure

Loan sizes

$50K–$80M

Interest rates

4.99–27.99% p.a.

LVR (development)

Up to 85%

Settlement speed

24 hours to 5 days

Loan term

1–360 months (typically 3–12 months for development)

Credit impaired

Accepted

Lo-doc available

Yes

Early exit/refinance

No penalty — repay anytime

Ranges shown are across our full panel of specialist lenders. Your deal may fall within a narrower range depending on your specific circumstances.

What lenders want to see

For this scenario, lenders focus on:

Development site title or contract — proof you control or can control the property.
Site valuation — independent or agent assessment.
Zoning confirmation — showing the site can be developed as intended.
Development plan — outline of what you'll build/develop.
Exit strategy — how you'll refinance (development finance, sale, etc.).
Proof of funds for development — if you'll fund development yourself.

When this might not work

Specialist lending has limits:

Zoning is unclear or restricted — if site can't be developed, deal fails.
You have no exit strategy — lenders want to know how you'll refinance.
Development market is declining — if development values fall, refinancing becomes difficult.
Title has issues — liens, caveats, or restrictions prevent development.
Your development credibility is zero — first-time developers may face higher rates or lower LVR.

What our panel can offer

Our panel includes specialist lenders who actively fund this scenario.

$50K–$80M
4.99–27.99% p.a.
Up to 85%
24 hours to 5 days
1–360 months (typically 3–12 months for development)
Accepted
Yes
No penalty — repay anytime

Describe your situation and we'll match you with the best options.

How to get funding — Step by step

The process is straightforward:

Step 1: Describe your deal. Tell us the property type, location, value, and what you need the funds for.
Step 2: Get matched. Our AI matches your situation against specialist lenders on our panel.
Step 3: Move forward. Contact your matched lenders directly. Settlement can happen within days.

Common questions

Why use bridging for a development site?

Development sites are time-sensitive. Bridging lets you settle immediately and lock in the price while you arrange development finance. Once the site is yours, development funding becomes easier to arrange.

How fast is bridging settlement?

Bridging can settle in 24 hours to 5 days, depending on documentation readiness. This is vastly faster than traditional lenders (2–4 weeks).

What happens after I settle with bridging?

You then arrange development finance or conventional funding to refinance the bridging. Most development sites are refinanced within 3–6 months once the site is secured.

What if the development site doesn't get zoning approval?

This is the borrower's risk. If zoning is denied, the site value may drop and you may struggle to refinance the bridging. Lenders protect themselves by assessing zoning likelihood before funding.

Are bridging rates expensive?

Yes, compared to traditional mortgages. Bridging rates (5–15% p.a.) are higher because they're short-term, higher-risk loans. But the speed and certainty often justifies the cost.