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Construction & Development Finance
Specialist development and construction finance for residential and commercial building projects
What is Construction & Development Finance?
Development and construction finance provides funding for property projects, with loan funds typically released progressively as construction milestones are completed. This type of finance can support a range of projects, including residential builds, multi-unit developments and commercial construction.
Unlike standard property loans, development finance is structured around the overall project, including construction costs, timelines, feasibility and the expected outcome of the development.
Common Construction & Development Finance Scenarios
Construction & Development Finance can be used for a range of property projects, from individual builds through to larger-scale developments
Investment Upgrades
Property investors may use development finance to fund projects intended for future sale, retention or expansion of their property portfolio. This can include projects designed to generate long-term capital growth, rental income or future development opportunities.
Building a New Home
Development finance can help fund the construction of a new home, with funding released progressively throughout the build as construction milestones are completed. This allows borrowers to manage construction costs while building their home from the ground up.
Multi-unit Developments
Larger residential construction projects may require specialised development finance to fund multiple dwellings, with lending assessed against the overall project structure and expected end value. Depending on the project, lenders may also consider construction timelines, feasibility and pre-sales.
Small Property Developments
Finance can be used for smaller-scale developments such as duplexes, townhouses or other residential projects, subject to project feasibility and lender requirements. These projects are commonly undertaken by investors, developers and owner-builders looking to maximise the potential of a site.
Building a New Home
Development finance can help fund the construction of a new home, with funding released progressively throughout the build as construction milestones are completed.
This allows borrowers to manage construction costs while building their home from the ground up.
Small Property Developments
Finance can be used for smaller-scale developments such as duplexes, townhouses or other residential projects, subject to project feasibility and lender requirements.
These projects are commonly undertaken by investors, developers and owner-builders looking to maximise the potential of a site.
Multi-unit Developments
Larger residential construction projects may require specialised development finance to fund multiple dwellings, with lending assessed against the overall project structure and expected end value.
Depending on the project, lenders may also consider construction timelines, feasibility and pre-sales.
Investment Upgrades
Property investors may use development finance to fund projects intended for future sale, retention or expansion of their property portfolio.
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This can include projects designed to generate long-term capital growth, rental income or future development opportunities.
Factors Lenders May Consider
Development and Construction Finance assessments are typically more detailed than standard residential lending. It focuses on both the borrower and the proposed project. Key factors typically include:
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Project feasibility and total cost breakdown
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Builder experience and qualifications
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Land value and loan-to-cost ratio
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Pre-sales (if required for larger projects)
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Construction timeline and milestones
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Exit strategy and end-value projection
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If you'd like to explore construction finance options tailored to your development project, obligation free, please get in touch.
Related Lending Solutions
Depending on your strategy, Construction & Development lending can often overlap with other finance solutions, including:
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Solutions to help you review your current home loan, reduce repayments or access equity
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Solutions tailored to your business and property goals, with options for Self-Employed borrowers
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Designed to support portfolio growth and long-term wealth creation
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Lending criteria, fees, charges and eligibility requirements vary between lenders. All applications are subject to individual assessment and lender approval.