A property in a NSW Mine Subsidence District can usually be financed like any other, provided the home and other structures were built with the approvals Subsidence Advisory NSW requires. Those approvals also keep the home eligible for compensation if mine subsidence damages it. Before you buy, check the district, the approvals and any past claims.

Mine subsidence districts at a glance
Question Answer
What is a district? An area with potential subsidence risk from planned, active or past underground coal mining
Sydney-region districts Include Appin, Bargo, Picton, South Campbelltown and Wilton
Building or subdividing Needs Subsidence Advisory NSW approval first
Compensation Available for damage if built with the correct approvals
How to check NSW Planning Portal Spatial Viewer, by address

What is mine subsidence?

Mine subsidence is movement of the ground that can occur after underground coal is extracted, when the land above sinks into the space left behind. Subsidence Advisory NSW manages the districts where this risk exists and regulates building in them, so homes are designed to cope with movement.

Where are the districts near Sydney?

Most districts are in the coalfields of the Hunter, Lake Macquarie, the Central Coast, the Illawarra and the Lithgow area. Closer to Sydney, they include Appin, Bargo, Picton, South Campbelltown and Wilton, which overlap the new estates of the Macarthur growth area. The district maps are general; the Planning Portal’s Spatial Viewer gives a property-specific answer, and the planning certificate attached to the contract also notes it.

Do lenders lend in mine subsidence districts?

Generally yes. Being in a district is not a reason to decline on its own. What matters to a lender is that the valuer is comfortable, the home is insurable, and there is no unresolved damage or claim. Unapproved structures, such as an extension built without the required approval, can concern both the valuer and the lender, because they may not be covered for compensation.

What should you check before you buy?

  1. Search the address on the Planning Portal Spatial Viewer.
  2. Ask your conveyancer to confirm with the seller that structures were built with the correct approvals.
  3. Ask whether there has been a past or pending mine subsidence claim.
  4. Check council records for approvals of extensions, pools and outbuildings.
  5. Have a building inspector note any cracking or movement.

What if you plan to build or subdivide?

You need approval from Subsidence Advisory NSW before you start, for a new home, an extension or a subdivision. Build that into your timeline for a construction loan, because lenders want approved plans before the first progress payment. The construction loans and house and land package loans pages explain how building loans run, and the Macarthur page covers the local market.

What happens if subsidence damages your home?

All homes in NSW, inside or outside a district, are eligible for compensation if damaged by mine subsidence, provided the correct approvals were obtained. Claims go to Subsidence Advisory NSW. Your home insurance and your lender should be told about significant damage, because it can affect the security.

Questions people ask

Is it safe to buy in a mine subsidence district?

Many thousands of homes sit in districts. The protection comes from building to the approved design and keeping eligibility for compensation, so check the approvals.

Will a mine subsidence district affect my home loan?

Usually not by itself. Lenders focus on the valuation, insurance and whether structures are approved.

How do I know if a property is in a district?

Search the address on the NSW Planning Portal Spatial Viewer, and read the planning certificate in the contract.

What does it mean if a property is in a mine subsidence district?

It means the area has potential subsidence risk from planned, active or past underground coal mining. You need approval from Subsidence Advisory NSW before building, extending or subdividing, and homes built with the right approvals can claim compensation for subsidence damage.

Charles Touma checks lender appetite for properties in Macarthur and other districts before you exchange, so there are no surprises at valuation. A free 30-minute call covers it. General information only, not credit advice; lender policies change and every loan is subject to the lender’s assessment.

Sources: Subsidence Advisory NSW, Mine Subsidence Districts; Subsidence Advisory NSW, what is mine subsidence, checked 18 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.