Build your vision with financing
Expert property development funding
Turning an empty block of land or an aging property into a profitable multi-dwelling development requires more than just a great builder and a solid blueprint—it requires perfectly structured capital.
Securing finance for a construction project is vastly different from getting a standard home loan. Whether you are subdividing a block for a duplex, constructing a multi-level townhouse complex, or undertaking a large-scale commercial build, the right finance structure can be the difference between a highly profitable project and a stressful, stalled site.
Funding your projects
What is development funding?
Development funding (or development finance) is a specialised type of short-term loan used to fund the construction, renovation, or development of multiple properties on a single title, or large-scale commercial projects.
Unlike a standard mortgage where you receive a lump sum at settlement, development funding is released in stages (known as progress drawdowns). As your builder completes each stage of construction—such as the slab, frame, lock-up, and fixing stages—the lender releases the funds directly to pay the invoices. This protects the lender’s risk and means you only pay interest on the money you have actually drawn down.
Lenders assess development loans based on two primary metrics:
1. Total Development Cost (TDC): The total cost of the land, construction, and associated soft costs (like architect and council fees).
2. Gross Realisable Value (GRV): The estimated end-value of the completed project once all dwellings are built and ready for sale.
How we can help
Avoid loan rejection
Development finance is notoriously complex. One slight error in your feasibility study or loan structure can cause lenders to reject your application. At Australian Loan House, we take the stress out of the process by managing the financial architecture of your build from start to finish.
Your private loan brokers
Who is private lending for?
Private lending is designed for commercial, business, and investment purposes. It is the ideal financial solution for borrowers who have strong assets but fall outside the strict, “tick-a-box” criteria of major banks.
This service is highly suited for:
- Property Developers & Investors: Needing fast acquisition capital, residual stock loans, or construction funding without waiting weeks for bank approvals.
- Business Owners: Requiring urgent cash flow injections, bridging capital, or needing to clear pressing ATO tax debts so they can restructure.
- Complex Borrowers: Those with complex company trusts, Self-Managed Super Funds (SMSFs), or irregular, self-employed income that traditional banks struggle to assess.
- Time-Sensitive Buyers: Borrowers requiring immediate bridging finance to secure an opportunity before their existing property sells or a settlement deadline passes.
Our services
Explore our services and resources
Property development finance
Securing funding for a new development can be a rigid and highly scrutinised process. We demystify the commercial lending landscape and explain exactly what risk-averse lenders are looking for today.
We set clear expectations up front, help you mitigate potential risks in your application and negotiate terms on your behalf.
Outcome: A viable pathway to approval with clearer milestones and commercial requirements.
Non conforming loans
If standard bank criteria does not fit, specialist lenders may offer options for complex circumstances and credit histories still today.
We explain costs and conditions clearly, then prepare the information lenders need for review.
Outcome: Clear path forward with realistic options now.
SMSF loans
An SMSF loan can fund an investment property when strict compliance requirements are met and you want to leverage your superannuation savings today.
We confirm borrowing rules and coordinate the complex legal details with your advisory team, so everything stays aligned.
Outcome: Secure property investment with clear steps ahead.
Business & commercial loans
Business lending can support working capital, cash flow, equipment, or commercial property when growth plans require funding support right now.
We clarify purpose, prepare documents, and compare lenders so your application stays organised always.
Outcome: Funding aligned to business goals and timelines.
First home buyers
Your first home should feel clear, not confusing. We explain borrowing capacity, deposits and pre approval before you make offers.
We keep paperwork organised and guide you through approval and settlement, step by step.
Refinancing a loan
Refinancing helps when your loan no longer suits your budget, goals, or lifestyle. We review rates, fees, and features carefully.
We compare options, explain costs clearly and manage paperwork so the switch stays simple.
Debt consolidation
Multiple repayments can strain your budget .
We assess whether eligible debts can be combined into one facility safely.
We check affordability and total cost, then explain trade offs in plain English clearly.
Investment loans and lines of credit
Investment lending works best with the right structure.
We compare loan options that suit your cash flow and strategy goals.
We explain flexible features, lender policy and documents required so you can act quickly.
Our partners
Strong lender relationships help us compare options quickly and match loans to real borrower needs.
What our clients say about us
Real feedback from clients who valued clear advice, organised support and a smooth lending process.
Expert developer loan services
We help you by…
Access to the right lenders
Major banks have very strict criteria for developers. We have access to a wide panel of lenders, including major banks, tier-two lenders, and private commercial funders, ensuring we match your project with the right risk appetite.
Maximising your borrowing power
We help you structure your application to achieve the highest possible Loan-to-Value Ratio (LVR) against your Total Development Costs, reducing the amount of cash you need to tip in upfront.
Feasibility & Presentation
We assist in presenting your project professionally. Lenders want to see a watertight feasibility study, a strong builder's contract, and a clear exit strategy. We ensure your application ticks every box before it hits the credit assessor's desk.
Managing drawdowns
Our service doesn’t stop at settlement. We assist you throughout the entire build process, coordinating with the lender to ensure your progress payments are released on time so your builders never down tools.
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Level 34/100 Miller St, North Sydney NSW 2060, Australia
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Australian Loan House
FAQs
Quick answers to common questions about development and construction loans in Australia.
How much can I borrow for a development project?
Borrowing capacity depends heavily on the lender and the scope of your project. Generally, traditional lenders will fund between 65% and 80% of the Total Development Cost (TDC), or up to 65% of the Gross Realisable Value (GRV). Private lenders may offer higher leverage, but typically at a higher interest rate
Do I need "pre-sales" to get approved?
It depends on the size of the project and the lender. For small projects (like a 2-to-4-unit townhouse site), many lenders do not require any pre-sales.
However, for larger commercial projects or apartment buildings, lenders usually require you to have sold a certain percentage of the unbuilt properties off-the-plan (pre-sales) to prove market demand and cover the debt before they will release construction funds.
What is the difference between a standard mortgage and development finance?
A standard mortgage is based on your personal income and ability to repay the loan over 30 years. Development finance is assessed primarily on the profitability and viability of the project itself.
Furthermore, development loans are usually short-term (12 to 24 months), and the interest is often “capitalized” (added to the total loan amount) so you don’t have to make out-of-pocket monthly repayments during the build.
What is 'Capitalised Interest'?
During construction, your project is not generating any rental income. To ease your cash flow, many lenders allow the interest charged during the build to be “capitalized.”
This means the lender includes the projected interest costs within the total loan amount. You do not make monthly cash repayments; instead, the interest is simply added to your debt and paid off in full when the project is completed and the properties are sold or refinanced.
How long does it take to secure development funding?
Because of the detailed risk assessment involved (including reviewing building contracts, council approvals, and independent valuations), traditional bank development loans can take 4 to 8 weeks to secure.
If you require faster funding, private development lenders can often provide approvals and settle within 1 to 3 weeks.