Developer Finance

Fund Your Next Development. From Site to Settlement.

Whether you're building 3 townhouses or a 50-lot subdivision, we connect you with lenders who understand development risk, feasibility, and presales.

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The Fundamentals

Development Finance Isn't A Standard Loan.

Development finance is project-based lending. The lender funds your build in stages based on feasibility, presales, and project milestones — not just your income.

Feasibility First

Before a lender says yes, they assess your project's feasibility — land cost, build cost, expected end value, and your margin. We prepare this upfront so there are no surprises.

Presale Requirements

Most lenders require a percentage of presales before releasing funds. We know which lenders have flexible presale thresholds — and which waive them entirely for strong projects.

Progress Draw Funding

Like construction loans, development finance is released in stages. But with multiple dwellings, the draw schedule is more complex. We manage the process end to end.

Mezzanine & Second Tier

If your first mortgage doesn't cover the full project cost, we can source mezzanine finance to bridge the gap — giving you the capital to complete without selling equity.

Exit Strategy

Lenders want to know how you'll repay — sell all lots, refinance to investment loans, or a mix. We structure your exit strategy before you even break ground.

GST & Tax Structure

Development projects have complex GST and tax implications. We work alongside your accountant to ensure the loan structure is tax-efficient from day one.

What We Fund

From Duplexes To Multi-Lot Subdivisions.

Small-Scale (2–4 Dwellings)

Duplexes, triplexes, and quad developments. Often funded by mainstream lenders with competitive rates. Ideal for first-time developers.

Medium Density (5–20 Lots)

Townhouse projects and boutique apartment buildings. Requires detailed feasibility and typically some presales. We access specialist development lenders for these.

Land Subdivision

Buying broadacre land and subdividing into individual lots. Funding covers acquisition, civil works, and titling. Different lenders specialise in different stages.

Large-Scale (20+ Dwellings)

Major apartment buildings and large estates. Requires significant presales, experienced builder, and detailed project management. We connect you with institutional-grade lenders.

The Process

From Feasibility To Final Settlement.

1

Feasibility Study

We assess your project numbers — land cost, construction cost, end values, profit margin, and timeline.

2

Lender Matching

We match your project to the right lender based on size, location, presale status, and your experience level.

3

Approval & Drawdown

Once approved, funds are released in stages as construction milestones are met and independently verified.

4

Construction Management

Progress claims, QS reports, and variation management — we coordinate between you, your builder, and the lender.

5

Settlement & Exit

As dwellings complete, we manage individual settlements or refinance to investment loans — whatever your strategy requires.

Lender Criteria

What Lenders Actually Look For.

01

Project Feasibility

Total development costs, contingency (5–10%), and a profit margin of at least 15–20% on GRV. Independent QS estimates are mandatory.

02

Presale Coverage

Banks require 70–100% debt coverage through unconditional contracts. Non-bank lenders accept 30–50% — or waive them for strong developers.

03

Developer Experience

Your track record of delivering similar projects on time and on budget. First-timers start small — 2–4 dwellings with tighter conditions.

04

Equity Contribution

30–40% of Total Development Costs as cash or land equity. Mezzanine finance can reduce this but adds to the overall cost of capital.

05

Exit Strategy

How you'll repay — sell all lots, refinance to investment debt, or a mix. A weak exit is one of the top reasons for decline.

06

Builder & Contract

Licensed, insured, financially stable. Lenders strongly prefer fixed-price contracts — cost-plus is rarely accepted for development facilities.

Real Talk

Challenges Developers Face — And How We Solve Them.

Presales Stalling Projects

Major banks requiring 70–100% presale coverage can delay construction by 6–12 months. We connect you with non-bank lenders who accept 30–50% presales — or waive them entirely for strong feasibilities.

Capital Lock-Up

With senior lenders capping LVRs at 60–70% of TDC, developers need substantial equity — often $1M+ for mid-sized projects. We source mezzanine finance to free up capital so you can run multiple projects simultaneously.

Major Banks Pulling Back

Since APRA tightened commercial lending guidelines, major banks have retreated from development lending — particularly sub-$20M projects and first-time developers. We bridge this gap with 50+ non-bank and private credit lenders.

Rising Costs & Valuation Gaps

Construction costs have risen 30%+ since pre-COVID. Lender valuations frequently fall short of developer assumptions, forcing extra equity or scope changes. We negotiate with valuers and structure facilities that account for market reality.

Common Questions

Developer Finance FAQs

How much deposit do I need for a development project?
Typically 20–35% of total project cost, depending on the lender and project scale. Some lenders offer higher leverage for experienced developers with strong presales. We'll assess your position and find the best fit.
Do I need development experience?
Not always. Some lenders fund first-time developers on smaller projects (2–4 dwellings) with the right builder and feasibility. For larger projects, lenders want to see a track record. We can help you build your development CV with the right first project.
What are presale requirements?
Most lenders require 50–100% debt coverage through presales before releasing construction funds. However, some specialist lenders have reduced or zero presale requirements for strong projects. We know which ones.
How long does approval take?
Development finance is more complex than standard lending. Allow 4–8 weeks for approval, depending on project complexity. We prepare a complete submission package upfront to minimise delays.
Can I use equity from other properties?
Yes — cross-collateralisation is common in development finance. Using equity from existing properties can reduce your cash contribution significantly. We'll structure this to protect your existing portfolio.
What is a Quantity Surveyor (QS) report?
A QS independently verifies construction progress before each draw is released. They confirm that the work claimed has been completed to the required standard. This protects both you and the lender.

Ready To Develop?
Let's Talk Finance.

Book a free strategy call. We'll review your project feasibility, assess your funding options, and connect you with the right development lender.

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Or call 1300 080 180