Development Finance

Fund the Build. Structure the Deal. — Property Development Finance Australia | Property Development Loans

Structured funding for townhouse, duplex, and multi-unit residential developments — from site acquisition and construction through to staged drawdowns, completion and exit.

Property development loans structured around feasibility, leverage, and exit — packaged by a specialist development finance broker.

Townhouse · Duplex · Multi-unit Specialist lender pathways Staged drawdowns Structured around feasibility & exit
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65–80%
Loan-to-Cost (LTC)
65–70%
LVR on Senior Debt (GRV)
$500K–$15M+
Typical Facility Size
2–4 Weeks
Formal Approval
Section 2 — How We Can Help
How We Can Help

Most development projects don't fail
on merit. They fail on structure.

The project stacks up. The builder is contracted. But the bank either can't assess it under standard policy, or takes so long the deal dies waiting.

The bank problem
Servicing models don't fit
Banks assess development deals against personal income servicing — not project feasibility. Self-employed borrowers with strong projects get declined because the payslip doesn't match the approval criteria.
The specialist path
Assessed on the project, not the tax return
Non-bank lenders underwrite against TDC, GRV, and project feasibility. The borrower's income story supports the deal — it doesn't have to carry it alone.
The bank problem
Builder-developer structures get flagged
When the borrower is also the builder, most banks treat it as higher risk with additional policy gates — even when the builder is licensed and experienced. The credit assessment doesn't account for dual-role capability.
The specialist path
Dual-role structures assessed on merit
Specialist lenders routinely fund builder-developers. They assess builder credentials, financial standing, and track record — not whether the structure fits a rigid policy template.
The bank problem
DA timelines expire in the credit queue
A 10–12 week bank turnaround on construction credit means settlement deadlines pass, development approvals risk lapsing, and builders move to other jobs.
The specialist path
Indicative terms in 48 hours
Non-bank lenders can turn indicative terms in 24–48 hours and formal approval in 2–4 weeks. The deal doesn't die in a credit queue.
The bank problem
Entity structures trigger policy exclusions
Trusts, companies, multi-director structures, and related-party arrangements are standard in development — but they trip automated credit policy at most major banks.
The specialist path
Complex entities are business as usual
Non-bank development lenders work with trading trusts, corporate trustees, and multi-entity structures daily. Manual credit assessment means the structure is evaluated — not auto-flagged.
The bank problem
No construction drawdown capability
Standard bank construction loans aren't built for multi-dwelling projects. They lack QS-verified staged drawdowns, capitalised interest, and cost-to-complete management.
The specialist path
Built for staged construction funding
Development finance facilities are purpose-built: QS drawdowns, capitalised interest, cost-to-complete tracking, and facility terms that match the project timeline.
Bottom line: a bank decline on a development project usually isn't a credit problem — it's a policy fit problem. The right development loan gets structured around the project — not the borrower.
Check Eligibility or talk to a broker →
Section 2b — What It Is
Residential development under construction — timber framing and site works
What It Is

What is property
development finance.

A category of property development lending designed to fund the full lifecycle of a multi-dwelling residential build — assessed on project feasibility, not personal income servicing. Funding is structured through staged drawdowns, with interest capitalised and mezzanine finance layered in where senior debt doesn't cover the full requirement.

The funding lifecycle
01
Site Acquisition
Purchase funding for the development site — often the first drawdown stage of the facility. Land equity may count toward the borrower's equity contribution.
02
Construction Funding
The core facility covering build costs. Released in QS-verified stages as construction progresses — not as a lump sum and not on a calendar.
03
Staged Drawdowns
An independent quantity surveyor (QS) inspects, certifies progress, and triggers each drawdown. Funds are tied to actual construction completion — protecting lender and borrower.
04
Capitalised Interest
Interest is rolled into the facility and repaid at project completion or refinance. No monthly repayments during the build phase — standard in development finance.
05
Senior + Mezzanine Debt
Layered funding structures where senior debt alone doesn't cover the full requirement. Mezzanine sits behind senior and fills the gap between facility and total project cost.
06
Equity Gap Funding
Bridging the gap between senior facility, mezzanine, and total project cost. May include cross-collateralised security, second mortgages, or structured equity contributions.
07
Project Exit / Sell-Down
Facility repayment through sale of completed stock, retain and refinance to a term loan, or a hold strategy. Extension options (3–6 months) are standard for sell-down periods.
Section 2c — Project Fit
Project Fit

What development projects
this funding suits.

If your project involves residential construction — townhouse, duplex, or multi-unit — with a DA, a fixed-price building contract, and a credible exit strategy — it likely fits.

🏘️
Townhouse rows (3–12+ dwellings)
Subdivided or multi-lot sites with DA-approved plans and a fixed-price building contract. The core use case for property development finance.
📐
Duplex and small multi-unit residential
Duplex, triplex, and boutique multi-unit developments that sit between standard resi loans and large-scale commercial development finance. Often assessed on GRV and LTC.
🏗️
Builder-developer projects
Licensed builders developing their own projects — where the borrower is both developer and constructor. Needs a lender comfortable with dual-role structures.
📍
Site acquisitions
Purchasing a development site with intent to build — where acquisition finance is the first drawdown stage of a larger construction facility.
📊
Clear exit strategy
Projects with a defined sell-down plan, pre-sales pipeline, or retain-and-refinance pathway that satisfies lender exit requirements.
🔄
Mid-build refinance
Refinancing an existing construction facility mid-way through build — due to lender issues, cost overruns, or a restructured funding requirement.
Probably not the right fit
× Owner-occupier builds with no development intent
× Projects without DA or a clear planning pathway
× Speculative land banks with no build timeline
× High-rise or large-scale commercial
Different scenario? Try One Doc Home Loans, Business Loans, or Asset Finance.
Not sure if the project qualifies? A short conversation is the fastest way to find out.
Check Eligibility or talk to a broker →
Section 3 — Structure + Underwriting
Structure + Underwriting

How development finance
is structured.

Every development finance facility is built around three numbers — and assessed against a feasibility-first underwriting model, not personal income servicing.

TDC
Total Development Cost
Land, construction, professional fees, statutory costs, interest, and contingency. This is the baseline figure lenders size the entire facility against — and the number that determines your equity requirement.
GRV
Gross Realisation Value
Projected total value of all completed dwellings at sale. Profit margin, LVR, and the entire feasibility assessment are measured against GRV.
EXIT
Exit Strategy
Sell-down of completed stock, refinance to a term loan, or a combination. No credible exit means no approval — lenders need to see how the facility gets repaid.
LVR Loan-to-Value
Facility as a % of GRV. Senior debt typically capped at 65–70% on residential development projects.
LTC Loan-to-Cost
Facility as a % of TDC. Typical range 65–80% depending on risk profile and project margin.
QS Quantity Surveyor
Independent verification of construction progress at each drawdown stage. Funds released against certified completion.
CI Capitalised Interest
Interest rolled into the facility. No monthly repayments during the build phase — standard in development finance.
DA Development Approval
Planning and building permits must be in place or conditionally approved before most lenders issue a formal offer. Pre-approval may be possible with conditional DA.
FPBC Fixed-Price Building Contract
Signed contract with a registered builder. Locks construction cost and reduces cost-blowout risk for lenders.
What lenders look at
Senior debt LVR 65–70%
Loan-to-cost 65–80%
Equity required 20–35%
Typical facility $500K–$15M+
Facility term 12–24 months
Formal approval 2–4 weeks
Pre-sales required Not always
Bottom line: TDC drives equity. GRV determines leverage. The exit sets the facility term. A specialist development finance broker makes sure these pieces fit before the file goes to a lender — not after it comes back declined.
Section 4 — Who + Process (Interactive)
Who This Is For

Who development
finance is for.

This pathway is for developers and builder-developers with a DA-approved residential project that needs specialist funding outside standard bank policy — whether it's a property development loan, mezzanine structure, or staged construction facility.

✓
Experienced developers
Prior completions, looking for faster approvals, better leverage, or a lender that fits the project — not just the borrower profile.
✓
Builder-developers
Licensed builders developing their own projects. Dual-role structures that most banks flag but specialist lenders assess on merit.
✓
Self-employed borrowers
Business owners whose income doesn't fit standard bank servicing — but whose project stacks up on feasibility, equity, and exit.
✓
First or second project developers
Newer developers with DA-approved plans, a fixed-price contract, adequate equity, and a strong builder — even without a long track record.
✓
Developers needing speed or structure
Tight settlement deadlines, DA expiry windows, mid-build refinances, or deals where the structure matters as much as the rate.
Probably not the right fit
× Owner-occupier builds with no development intent
× Projects without DA or a clear planning pathway
× Speculative land banks with no build timeline
× High-rise or large-scale commercial
Different scenario? Try One Doc Home Loans, Business Loans, or Asset Finance.
01
Review + feasibility
You send the project overview. We model TDC, GRV, margin, and equity — and confirm whether the deal has a pathway before anyone wastes time.
02
Lender matching
We shortlist the non-bank and private lenders most likely to approve — matched on risk appetite, pricing, leverage, and structural fit.
03
Structure + approval
We package the deal — senior debt, mezzanine where needed — and manage the approval process through to term sheet, valuation, and QS engagement.
04
Drawdown + exit
We coordinate staged drawdowns through construction, then assist with sell-down settlement, refinance of retained stock, or transition to the next project.
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Section 5 — FAQ + CTA + Links
FAQ

Development finance
FAQs.

Quick answers for developers considering specialist development funding. If the scenario is unusual, a short call covers more ground than any FAQ.

Most non-bank development lenders offer facilities between 65–80% of total development cost (LTC), or up to 65–70% of gross realisation value (GRV) on senior debt. Mezzanine finance can extend total leverage further where the deal supports it.
Typically 20–35% of total development cost, contributed as cash equity or land equity. If you own the site outright, that often counts toward your equity contribution. Some lenders accept cross-collateralised security to bridge the gap.
Not always. Many non-bank lenders fund residential development projects without pre-sales, provided feasibility is strong, the exit strategy is credible, and location supports demand. Pre-sales can improve pricing and leverage though.
Yes — with the right project metrics. You'll typically need a strong builder, DA-approved plans, solid feasibility, and adequate equity. Some lenders accept construction industry experience even without a completed development.
Funds are released in stages as construction progresses. An independent quantity surveyor (QS) inspects the site at each stage, certifies completion, and the lender releases funds. No progress, no drawdown.
Indicative terms within 24–48 hours. Formal approval including valuation, QS, and legal typically 2–4 weeks. Materially faster than bank pathways which can run 8–12+ weeks on development credit.
Most facilities include extension options (3–6 months). Unsold stock can also be refinanced to a term loan while sell-down continues. A good broker structures for this upfront — not as an afterthought.
A standard construction loan is for owner-occupiers building a single home — assessed on personal income servicing. Development finance is assessed on the project itself: feasibility, TDC, GRV, developer experience, builder strength, and exit strategy. Fundamentally different products.
Bottom line: if the file has unusual features — trust structures, complex income, prior declines or multiple entities — a short conversation is the faster path.

Structured around feasibility,
leverage, and exit.

The deal that gets approved isn't always the cheapest — it's the one that's structured right. If you're planning a residential development and need a development loan outside standard bank policy, start here.

Check Eligibility Talk to a Broker
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