Property development finance funds the construction of new property, from a small residential project of a few dwellings through to larger residential and commercial developments. It’s one of the most specialised areas of commercial lending, assessed not on a finished asset but on a project: the feasibility, the costs to complete, the expected end value, and your ability to deliver it.
Development loans are typically sized against the total development cost and the gross realisation value (the projected end value of the completed project), with funds released progressively as the build hits each stage. Larger projects can require presales and a layered funding structure of senior debt and sometimes mezzanine or private finance. Lender appetite varies widely, and the more complex deals often sit with specialist or non-bank lenders.
At Loanworx, we arrange development finance across project sizes and types. As an experienced finance broker, we work through the feasibility with you, structure the funding, and match the project to lenders who back developments like yours, coordinating with your team through to completion.
Planning a development, from a small build to a multi-stage project? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
Development funding is assessed on the project, not a finished asset. Here are the three things that shape it.
Development loans are sized against the total development cost and the gross realisation value, the projected value of the finished project. Lenders lend a proportion of each, so the feasibility and the margin between cost and end value are central to how much you can borrow.
A credible feasibility study underpins every development loan, and larger projects often require a level of presales, sold dwellings off the plan, before the lender will fund construction. Smaller projects may proceed without presales, depending on the lender.
Larger or higher-leverage projects can use a layered structure: senior debt from a bank or non-bank, topped up with mezzanine or private finance to bridge the equity gap. Each layer carries different cost and risk, and the right mix depends on the project.
Development finance turns on the numbers and the team. A project with a solid feasibility, a sensible margin and an experienced developer behind it is fundable; one with a thin margin or an unproven team is far harder, regardless of how good the site looks.
We work through the feasibility with you, structure the funding across senior and, where needed, mezzanine or private finance, and match the project to lenders with genuine appetite for developments of that size and type. Given the complexity, a fee for service may apply, disclosed upfront before any work begins.
A development often connects to other commercial needs, from the land purchase to the end refinance. Explore our other commercial services below.
SMSF Loans
Borrow inside your self-managed super fund to acquire commercial property under a limited recourse borrowing arrangement.
Vehicle and fleet finance through chattel mortgage, lease or hire purchase, structured for your cash flow and tax position.
Short-term finance to bridge the gap between buying and selling, or to cover a timing shortfall.
Funding to buy a business or practice, including goodwill where the deal and lender support it.
Finance to acquire or refinance commercial investment property across office, retail, industrial and specialised assets.
Review and refinance existing commercial debt to sharpen the rate, release equity or restructure the facility.
Overdrafts, lines of credit and cash-flow facilities sized to your real working capital cycle.
A development loan is assessed on the project, the numbers and the team behind it. These are the factors that weigh most heavily.
A credible feasibility study, with realistic costs and a defensible gross realisation value, underpins the loan. The margin between total cost and end value drives how much a lender will advance.
We help pressure-test and present the feasibility the way a lender needs to see it.
Lenders back developers who can deliver. A track record of completed projects, and a capable builder, project manager and consultant team, materially strengthen the application.
We present your experience and team to support the deal.
Development is equity-intensive. Lenders expect a meaningful contribution, and the size of it affects the funding structure and whether mezzanine or private finance is needed to bridge any gap.
We structure the equity and debt layers around the project.
Larger projects often need a level of presales before construction funding is released, to de-risk the end sales. Smaller projects may not. The requirement depends on the project and the lender.
We match the presale position to lenders whose policy fits it.
The site, the planning approval, the build program and the exit, selling the completed dwellings or refinancing to hold them, all feed into the assessment, and funds are released progressively against each construction stage. We structure the funding and the exit so the project is fundable from the ground up, working with your team through to completion.
Commercial finance isn’t only about the headline rate. It’s about being matched to a lender that will approve you, structuring the facility so it suits the business long term, and having someone manage the process. Here’s what working with us looks like.
We compare commercial facilities across a broad panel of major banks, second-tier lenders, non-bank funders and specialist commercial lenders, so you see a genuine spread of options. We match the deal to the lender most likely to approve it at a competitive rate, which often isn’t your everyday bank.
You deal with experienced brokers who expect to see trusts, companies, partnerships, partner distributions and complex security, and who know how to present your structure to a lender accurately rather than force-fitting it into a generic application.
From the first conversation to settlement, we prepare the submission, liaise with the lender, coordinate with your accountant and solicitor, and keep you updated at each stage, so the deal keeps moving and you’re never chasing it.
For most commercial transactions, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. For more complex scenarios a fee for service may apply, and we’ll disclose it in writing before any work begins. No surprises.
It funds the construction of new property, from a small residential project of a few dwellings to larger residential and commercial developments. The loan typically covers a proportion of the land and construction costs, released progressively as the build hits each stage. It’s assessed on the project, the feasibility, the costs to complete and the expected end value, rather than on a finished asset. We structure the funding around the specific project.
Development loans are sized against the total development cost and the gross realisation value (the projected end value), with lenders advancing a proportion of each. How much you can borrow depends on the feasibility, the margin between cost and end value, your equity and experience, and any presales. We work through the numbers with you and match the project to lenders whose appetite fits.
Often for larger projects, but not always for smaller ones. Many lenders require a level of presales, dwellings sold off the plan, before releasing construction funding on bigger developments, to de-risk the end sales. Smaller projects can sometimes proceed without presales, particularly with the right lender or a non-bank structure. We match your presale position to a lender whose policy fits it.
It helps significantly. Lenders back developers who can deliver, so a track record of completed projects strengthens the application, particularly on larger or higher-leverage deals. First-time developers aren’t excluded, but usually need a strong team, a conservative project and more equity. We present your experience and team to support the deal and match you to lenders comfortable with your level.
Progressively, against the build. Rather than a lump sum, the loan is drawn in stages as construction reaches each milestone, usually verified by a quantity surveyor or the lender, so the funding matches the work completed. You generally pay interest only on the drawn amount during construction. We help you map the drawdown schedule so the funding keeps pace with the build.
Often, yes. Development finance is complex and specialised, and for these scenarios a fee for service may apply in addition to any lender commission, reflecting the work involved in structuring and placing the deal. We always disclose any fee in writing before any work begins, so you know the cost upfront. No surprises.
Talk through your scenario with a specialist commercial broker, with no cost and no obligation. Call us on 1300 562 696 or get in touch and we’ll be back to you shortly, ready to map out what’s possible for your business.
Disclaimer: The information provided here is general in nature and should not be considered financial, tax or legal advice. You should consult your professional advisers, such as your accountant, solicitor and financial planner, to see whether a particular finance strategy is suitable for your business, ahead of a discussion with us that will be limited to how to arrange any funding required.
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