You can usually get a loan on a property in a flood or bushfire prone area, but the lender needs it insured from settlement and the valuer will note the risk. The planning certificate in a NSW contract shows whether the land is bushfire prone or under flood controls. Get an insurance quote before you exchange, because high premiums change affordability.

Hazard-prone property at a glance
Check Why it matters
Planning certificate Shows flood controls and bushfire prone land
Insurance quote Lenders need cover; premiums can be high
Valuation The valuer may note risk or recent events
Building requirements Bushfire rules can add to building or renovation costs

What does the planning certificate tell you?

A section 10.7 planning certificate must be attached to a contract for the sale of land in NSW. It covers the zoning and other matters, including whether flood-related development controls apply and whether the land is bushfire prone, as well as mine subsidence. Read it with your conveyancer before you exchange.

Why does insurance matter so much to the lender?

Lenders require building insurance on the home from settlement, noting their interest. If a home is hard to insure, or the premium is very high, the lender may not proceed, and a high premium also raises your living costs. Getting a quote early avoids finding out after exchange, when the deposit is at risk.

How do valuers treat flood and bushfire risk?

Valuers report on the property’s risks and recent sales. If an area has flooded recently, or a property sits in a high-risk zone, the valuation may be more conservative, which affects the deposit you need. The low bank valuation page explains what to do if a valuation comes in short.

What about building or renovating?

New homes and some renovations on bushfire prone land must meet construction standards for the assessed bushfire attack level, which can add cost. Flood controls can set minimum floor levels. Build those costs into a construction or renovation budget; see construction loans and renovation loans. Some housing policies also exclude hazard-affected land; for example, the low and mid-rise housing rules do not apply in the Hawkesbury, Blue Mountains and Wollondilly local government areas.

Which Sydney areas does this affect?

Flood risk is highest along the Hawkesbury-Nepean, Georges and Parramatta rivers and in low-lying pockets elsewhere. Bushfire prone land is common on the urban fringe, in the Hills, the Sutherland Shire, the northern suburbs and the Blue Mountains. The Tempe page looks at flood and insurance questions in one Inner West suburb.

What should you do before you exchange?

  1. Read the planning certificate for flood and bushfire notations.
  2. Get a building insurance quote for the address.
  3. Ask the agent about any past flooding or fire damage.
  4. Have the building inspector note any water damage.
  5. Ask your broker whether the lender has any concerns about the area.

Questions people ask

Can I get a home loan for a flood zone property?

Usually yes, if the home can be insured and the valuation supports the price.

Do lenders lend on bushfire prone land?

Yes, generally, with insurance in place. Building on it can cost more because of construction standards.

How do I find out if a property is flood affected?

Read the planning certificate in the contract, check council flood information and get an insurance quote.

Charles Touma flags insurance and valuation risks early, so they are dealt with before you exchange. 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: NSW Government, contracts and deposits; Moneysmart, storm, flood and fire insurance; NSW Planning, low and mid-rise policy exclusions, 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.