Development Finance

Are you looking to invest in residential property development? 

Developments finance could fall under the normal residential loan process if it is less than 4 dwellings. Anything more than 4 dwellings will fall under the commercial developments category. 

2 - 4 dwellings - land subdivision or construction

• Up to 95% LVR borrowing for building 2 houses

• Up to 80% LVR borrowing for up to 4 houses

Medium size developments (anything over 5 dwellings)

• Bank will lend up to 65% GRV(gross relisation value exclude GST) or 70% of costs whichever is lower

• Non-Bank will lend up to 70% GRV (gross relisation value exclude GST) ot 85% of costs whichever is lower

• You must meet 15% profit margin

• Maximum loan term - 3 yrs

• Developer requires to have some experience in property development or hires an experienced project manager

• Interest rates are based on risk ratings

At Smarter Choice Finance Brokers, we have various banks and non-bank lenders that are specialised in development finance. Please contact one of our commercial broker for a funding table.