Development Finance
Secure the funds to get your property development underway
There are many complexities to property development, financing being one of them. Yet without the money to fund your build project, your future development is a non-starter. Whether you’re an experienced developer or embarking on your first project, we’re here to guide you through every step of the development finance process and secure the funding you need.
Sourcing development finance
Each project is unique, so we’ll start with a comprehensive consultation to understand your project and financial needs. We’ll then begin the process of sourcing a development finance solution. As whole-of-market brokers, we have access to an extensive network of lenders, giving you plenty of potential options. We’ll evaluate each possibility against your objectives until we find one that meets your needs.
When you’re ready to make your application, we’ll take care of the process for you. We’re experienced at structuring a funding application and know what the lenders want to see. Our input will save you time, expedite the process and increase your chances of success. With our help, you’ll soon be on the way to breaking ground on your development project.
For help securing development finance, get in touch for a free, no-obligation chat with a mortgage adviser.
Development Finance FAQs
What is development finance?
Development finance is a type of financing used to fund residential or commercial property development projects. These can include new build projects, renovations, refurbishments and conversions.
How is development finance different from a traditional mortgage?
There are several differences between development finance and traditional mortgages. A regular mortgage is used to buy an existing property, whereas a development loan finances a new property build or renovating or converting an existing property. A development finance loan is usually short-term, whereas traditional mortgages are long-term. Finally, development finance usually involves staged payments linked to project milestones, unlike a conventional mortgage, which provides a lump sum upfront.
How does property development finance work?
With a development loan, the funds are released in stages at key points in the development’s progress. Typically, the interest isn’t serviced but rolled up on top of the principal amount. The loan will be repaid through the sale or refinancing of the completed project.
How much can I borrow through development finance?
The amount of development finance you can borrow depends on several factors, and each lender has different criteria and risk appetite. Typically, lenders will offer up to 70% of the funds for the initial site purchase and 100% of the development costs. If it’s your first development, you’ll probably need to pay 50% towards the land purchase, and you’ll unlikely secure the total development costs.
How long does it take to get development finance approval?
Approval for property development finance depends on the project’s complexity and can take several weeks. Using a broker can help speed up the process by ensuring the application meets the lender’s requirements and has all the necessary supporting documentation.
