Your FY27 Build Finance Map: The Right Facility at Each Stage
FY27 Build Finance Map for Builders | Switchboard Finance
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Your FY27 Build Finance Map: The Right Facility at Each Stage
A build is really four or five financing jobs in a row, and no single product does all of them well. This is the map of which facility fits each stage of an FY27 project, from the land you buy to the debt you hold or clear at the end. Plan the whole map first and each stage gets easier.
Quick Answer
The finance for a build changes at each stage. A project usually starts on development finance, then refinances into a commercial property loan as the end debt at completion. Match the facility to the stage, and plan the whole map first.
Plan the whole map before you break ground
A build runs on four or five facilities in sequence, each built for a different stage, and no single product does them all well. In practice, the projects that run smoothly are the ones where the builder planned the whole finance map first, then matched each facility to the stage it was built for. Construction finance is really a family of products, and the FY27 reset on 1 July is a sensible moment to map them before you commit to a site. Our Construction hub sets out the lane in full.
Land, build, completion, and the decision to hold or sell each ask a different question of a lender, and using the wrong tool at the wrong stage is where good projects stall. The build itself has to meet the National Construction Code published by the Australian Building Codes Board, and a lender wants to see the project specified and costed to that standard before releasing funds against it.
Which facility matches each build stage
The quickest way to read the map is by stage: pick where your FY27 project sits and the facility follows. Read it as land, build, complete, then hold or sell. Most builds run on development finance through the land and construction phases (here is how development finance works), then refinance into a commercial property loan as the end debt once the asset is built and valued, where the real decision is whether to refinance and hold or sell at completion. A caveat loan only covers a short timing gap and never funds the build itself, and it is worth knowing where a caveat loan stalls before you rely on one.
Select your build stage
Development finance, sized on the finished value
Buying the site and funding the build is the job development finance is built for. A lender sizes it on the projected end value of the completed project, not just the land you are buying.
AcquisitionWhat lenders weigh when you plan ahead
When you bring a whole of build plan, a lender can see the exit before the first drawdown, which is exactly what they want to see. The numbers they size against are the projected end value and your own equity contribution, and your loan to value ratio sets the ceiling on each facility. Self employed builders are usually assessed on recent business activity, so a clean BAS and up to date figures move things along, and what shapes a commercial property loan rate is worth understanding before the end debt stage.
The wider lending market is shifting too, and that matters for who funds your stages and on what terms.
None of those shifts change the basic sequence, but they do change who is willing to fund each stage and how quickly. Non-bank funders have taken a larger share of construction and commercial property lending in recent years, which widens the options at the build stage for borrowers a major bank might pass on, and the move toward standardised data sharing should make comparing terms easier over time. The practical takeaway is unchanged: plan the whole map first, line up the end debt early, and treat the rest as detail you can refine as each stage approaches.
One broker across the whole stack
The real advantage of mapping the finance first is that one broker can carry the whole stack, so the stages hand off cleanly instead of stalling between lenders. The builders I work with most closely tend to line up the end debt before they break ground, not after, because the take out you plan early is the one that is actually there at completion. Your own home loan can sit alongside the project as a One Doc home loan, assessed on your self employed income rather than the project's timing, and a partner's income can carry that loan while your own is tied up mid build.
Plan the whole map first and an FY27 build stops being a scramble between lenders. Development finance carries the land and construction, a commercial property loan becomes the end debt at completion, a caveat tool covers only genuine timing gaps, and your One Doc home loan sits to one side. Matched to the stage, each facility does one job well.
Key takeaway: Match the finance to the stage, line up the end debt before you break ground, and keep one broker across the whole stack.Frequently Asked Questions
Each stage of a build needs a different facility: development finance for the land and construction, a commercial property loan as the end debt once the project is complete and valued, and a short dated caveat loan only to cover a genuine timing gap. Mapping them in order, from land to completion to hold or sell, is the whole point of a build finance plan. You can see the full lane on our Construction hub.
Development finance and a commercial property loan do different jobs at different points: development finance funds the land and the build and is sized on the projected end value, while a commercial property loan is the longer term end debt that takes over once the asset is built and valued. Most builds use both in sequence, not one instead of the other. Our explainer on how development finance works sets out the front end in detail.
One broker can carry a whole construction project across its stages, even where different lenders fund different parts, which keeps the hand offs clean instead of stalling between facilities. In practice the stages still use different products, but coordinating them through a single point is what stops gaps opening up. Our construction loan pack lays out the documents each stage needs.
A caveat loan fits a build plan as a short dated tool for a specific timing gap, not as a way to fund the construction itself. It is registered against a property you already hold and is repaid by a clear exit event, such as a drawdown or a settlement. You can read where a caveat loan does and does not fit before you rely on one.
Arranging finance for an FY27 build works best before you commit to the site, because the end debt you plan early is the one that is actually there at completion. Lining up development finance and a planned commercial property loan take out early also tells you how much equity you need to contribute. A self employed builder's own home loan can run alongside the project as a One Doc home loan.
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