Residual Stock Loan
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
Residual Stock Loan is finance secured against the unsold completed units left in a development after practical completion, letting the developer repay construction debt without fire-selling stock. It typically funds up to around 65 to 70 percent of the value of the remaining stock, giving the developer time to sell at market rather than at a discount. It is a common exit strategy when development finance falls due before all units have sold.
Why Residual Stock Loan Matters
A residual stock loan buys a developer time to sell at full value instead of dumping unsold units to repay the build loan.
- Secured against unsold completed units
- Repays development finance as it falls due
- Funds to roughly 65 to 70 percent of stock value
- Avoids discounting to meet a deadline
- A common post-completion exit strategy
Common Features of Residual Stock Loan
- Against completed, titled stock
- Lower LVR than a standard property loan
- Short to medium term
- Repaid as units sell down
- Often a non-bank or specialist product
Official reference: business.gov.au
What is a residual stock loan?
Finance against the unsold units left after practical completion, used to repay construction debt without discounting.
How much will lenders advance?
Usually around 65 to 70 percent of the value of the remaining stock.
Why use a residual stock loan?
To repay development finance on time while selling the last units at market value.
Is it a long-term loan?
No, it is short to medium term, repaid as the remaining stock sells.
Who offers residual stock loans?
Often non-bank and specialist lenders, since banks may not refinance leftover development stock.