Development & Construction Finance FAQs - Australia
What is development and construction finance?
Development and construction finance is structured lending used to fund land acquisition, build costs, civil works, contingency, and project delivery through staged drawdowns linked to construction milestones.
How does development finance work in Australia?
Australian lenders assess the site, end values, borrower experience, builder strength, feasibility, presales, and total development costs before issuing staged funding approvals.
What projects can be financed?
We assist with townhouse developments, duplexes, apartment projects, mixed-use sites, industrial facilities, commercial builds, subdivisions, and selected specialised developments.
How are drawdowns released?
Funds are usually released in stages based on construction milestones and quantity surveyor sign-offs, ensuring lender risk controls align with project progress.
Do I need presales for development finance?
Many lenders require presales depending on the asset type, leverage, and project size. The required level varies based on lender appetite and project risk.
What loan-to-cost ratio is typical?
Development funding is often structured around total project costs, with leverage levels depending on borrower strength, presales, asset class, and contingency allowances.
Can interest be capitalised?
Yes. Many construction and development facilities allow interest to be capitalised into the total facility to reduce cash flow pressure during the build phase.
Can you help with refinance at completion?
Yes. We help structure refinance pathways into investment lending, residual stock facilities, or sale exits well before practical completion.
What documents are needed for approval?
This usually includes feasibility studies, DA approvals, QS reports, fixed-price build contracts, builder details, borrower financials, and presale contracts where required.
How long does approval usually take?
Development approvals are generally more complex than standard commercial loans and can take several weeks depending on lender, documentation quality, and project complexity.
Can first-time developers obtain finance?
Yes, although lender appetite depends heavily on the project size, professional team strength, builder quality, and available equity contribution.
When should I speak to you about development finance?
Ideally before land acquisition or signing construction contracts so feasibility, lender fit, and capital structure can be optimised early.