When a builder's progress claim sits unpaid for 30–45 days while materials and subbies need paying now, a second mortgage against existing property can bridge the gap without touching the development facility. This scenario walkthrough shows how the cashflow timing works, what lenders check first, and where builders get it wrong.

Every drawdown on a development finance facility attracts fees that don't appear on the term sheet. QS inspection charges, capitalised interest accrual, line fees and variation costs compound across stages. Understanding what hits the facility at each draw — and why — is the difference between a project that settles on budget and one that stalls at lock-up.

Builders who trade through a trust can qualify for a one doc home loan by using the trustee as the borrower and verifying income through BAS turnover on an accountant letter. The key is how you present trust distributions, contract revenue and retention holdbacks in a format lenders accept.

Most builders don't need one loan — they need three facilities sequenced in the right order. Development finance, a commercial property facility and a private lending line each solve a different timing problem. Get the sequence wrong and the second approval stalls the first.

The gap between completing one development and starting the next is when most developers lose home loan eligibility under full-doc assessment. A One Doc home loan uses an accountant's letter to verify income capacity rather than requiring two years of consecutive tax returns — which means the inter-project gap doesn't disqualify you if the letter is structured correctly.

Most commercial property loans cap at 65–70% LVR. Reaching 80% requires multi-property security, the right valuation method and a lender panel that includes non-bank specialists. This guide breaks down the formula lenders use and what passes or fails at each tier

Caveat loans sit inside a specific window of a development project — after DA approval but before bank refinance settles. This timeline maps each stage from council approval through to caveat discharge, showing what non-bank funders assess at every trigger point and where most developers lose time.

The credit team reviewing a second mortgage business loan is not reading the same file as the first lender. Priority position, mortgagee consent and combined LVR change the entire approval lens — and most applicants have never seen what that assessment actually looks like from the other side of the desk.

Most self-employed borrowers refinancing to a One Doc home loan are already paying a higher rate than they need to. If your current lender assessed you on full tax returns and you're now trading stronger than those returns suggest, a One Doc refinance lets the lender assess on declared income instead — often unlocking a lower rate, better LVR, or access to equity you couldn't touch before.

APRA's debt-to-income cap restricts bank lending at high DTI ratios — but non-bank lenders sit outside APRA's regulatory perimeter. For self-employed borrowers using a One Doc home loan, borrowing power hasn't changed. The cap actually strengthens the case for non-bank pathways that were already built to assess irregular income without tax returns.