Development lending isn't like a regular mortgage. Progress draws, feasibility requirements, presales — we work with specialist funders who understand how a development actually runs.
Standard lenders don't do development lending — or when they do, they do it poorly. The product has to match the project. That means a facility that draws progressively as construction milestones are hit, an interest-only period while the project is underway, and a funder who understands that cash only comes in at completion.
We work with specialist development funders — both bank and non-bank — who are set up for exactly this. They understand feasibilities, Gross Realisation Values, presale requirements, and builder contracts. We know how to present a development deal to lenders who will actually consider it seriously.
Funds drawn in stages as construction milestones are reached. Interest only accrues on what's been drawn — so you're not paying on the full facility from day one.
Development lenders assess the deal on Gross Realisation Value — the end value of the completed project — not just the current land or construction cost. This gives you more borrowing capacity than a standard property loan.
A small list of lenders who genuinely understand development. We know who to go to for residential vs commercial, small projects vs large, and first-time developers vs experienced operators.
The type of project shapes the lender, the structure, and the terms. Here's what we deal with most.
Townhouses, apartments, dual occupancies, knockdown-rebuilds. Residential development is the most active segment, and there are more funders competing here than anywhere else. Presale requirements vary — we'll tell you what's expected for your project size.
Office, retail, industrial construction or significant fitout. Commercial development requires lenders who understand how yield, lease-up, and tenant profiles affect end value — very different from residential feasibility logic.
Ground floor retail with apartments above. Strata commercial plus residential. Mixed-use projects need a lender who can assess two asset types within one feasibility — they exist, and we know who they are.
Acquiring and subdividing land for residential or commercial lots. The lending logic here differs from construction — it's assessed on the end lot value and selldown timeline. We work with lenders who understand subdivision feasibilities.
Significant renovation to an existing asset — to sell, to refinance at a higher value, or to convert to a different use. The right finance structure depends on the exit strategy and timeline.
Some lenders are open to working with first-time developers if the deal stacks up, the builder is reputable, and the presales are solid. We'll give you an honest read on what's achievable before you spend money on plans and permits.
If you haven't used development finance before, here's how it typically works — and what you need to have in place before a lender will commit.
Lenders want to see the numbers. Total cost vs end value, margin, sensitivity analysis. The stronger and more professionally presented the feasibility, the better your position at credit assessment.
Many lenders require a certain percentage of the project sold (pre-DA or post-DA) before they'll fund construction. Requirements vary — from zero on small projects to 80% or more on large ones. We'll tell you what to expect before you start the sales process.
Funds are drawn progressively as each construction stage is certified complete. Interest is typically capitalised (added to the loan balance) rather than paid monthly — so your cash flow during construction isn't drained by interest payments.
These vary by lender and deal — but here's a general picture for residential development.
Development deals take longer to put together than a regular loan application — but we make the process as straightforward as possible.
Site location, project type, number of lots or units, estimated GRV, builder status, DA position, and any presales you have in place. The more you can give us, the more useful our initial assessment will be.
We review the deal, identify the most suitable development lenders for your project type and scale, and approach them with a well-prepared credit submission. You get indicative terms before committing to a formal application.
Development loan documentation is extensive. We manage the process — conditions precedent, builder contracts, QS reports, valuations — and stay across the project through to first draw.
What developers actually ask us when they first get in touch.
Most lenders want to see DA approval before they'll commit to a construction facility. Some will consider pre-DA land acquisition finance while you pursue approvals, with the construction facility following once DA is granted. There are also specialist lenders who will fund earlier in the process for experienced developers with a strong track record. We'll tell you which applies to your situation.
Most development lenders want to see the developer contributing meaningful equity — typically 25–35% of Total Development Cost, depending on the lender and deal. This can be in the form of unencumbered land, cash, or presale deposits. The more equity in the deal, the more lenders you can access and the better the terms. Mezzanine or second-mortgage funding exists for deals with less equity — but at a cost.
Yes — most lenders require a fixed-price HIA or MBA-form building contract with a licensed builder before they'll fund construction. This gives them confidence that the cost side of the feasibility is locked in. The builder's financial capacity (their insurance, licence, and references) will also be reviewed. We'll help you understand what the lender needs before you start builder negotiations.
Often yes. Non-bank development lenders can be faster to approve, more flexible on deal structure, and more willing to take a risk-adjusted view rather than applying a rigid policy scorecard. They typically charge higher rates, but the speed and flexibility can more than offset that cost when you're working to a timeline. We present both options with a clear comparison of terms so you can make the call.
Development loans are typically repaid from sales proceeds at settlement. If you're retaining some or all of the completed assets (apartments, commercial tenancies), you'll need to refinance into a standard investment loan at completion. We can help with that transition — making sure the takeout finance is already arranged before construction ends so there's no gap.
Tell us about the project — the site, the scope, where you're up to — and we'll come back with a genuine read on what's available and from whom. No cost, no obligation.