Refurbishment Finance

A refurbishment project covers a wide range of work: upgrading a tired commercial tenancy, restoring a dated residential block, converting a disused building, or bringing a property up to compliance. The finance structure needs to reflect the nature of the works, the type of asset, and the borrower's exit plan. Settled Funding Group arranges refurbishment finance across bank and non-bank lenders, working with residential investors, commercial property owners, and developers who need a lender that understands the full picture.

Who This Is For

• •Commercial property owners refurbishing a tenancy to improve occupancy rates and rental return
• •Investors refurbishing a residential property before selling or re-leasing to improve market value
• •Developers refurbishing dated residential buildings as part of a larger value-add strategy
• •Strata owners funding common property refurbishment works such as lobbies, lifts, or facades
• •Borrowers refurbishing a property to meet safety standards, accessibility requirements, or compliance obligations
• •Those converting a commercial building to residential or mixed-use and needing finance to cover the refurbishment works

How Refurbishment Finance Works

Refurbishment loans are typically structured as staged construction facilities, with drawdowns aligned to milestones in the works rather than a single lump sum. This keeps costs manageable and gives the lender comfort that funds are being used as planned. Joseph Farhat reviews the scope of works, the property type, your income and equity position, and your planned exit, then identifies lenders across the 90+ panel whose policy suits both the asset class and the refurbishment scope.

Unexpected cost overruns or funding gaps during a refurbishment project can stall works and put the whole project at risk. See the Gymea construction shortfall case study for an example of how a mid-project shortfall was solved quickly with the right second mortgage lender. The same approach is available for refurbishment scenarios where additional funds are needed to reach completion.

What Lenders Assess for Refurbishment Finance

• •Scope of works and contractor quotes: lenders want a clear and costed breakdown of all planned works. Vague or incomplete scopes are the most common cause of delays at assessment.
• •Building permit where required: structural works, changes to the building envelope, and commercial fit-outs often require council or certifier approval. Lenders confirm this before issuing approval.
• •Current property value and LVR position: the lender assesses how much equity is available in the asset as security for the refurbishment facility.
• •Income and rental income projections: for investment and commercial properties, the lender considers both current income and projected income post-refurbishment.
• •Nature of works: cosmetic and non-structural works are assessed differently from structural or compliance-driven refurbishments. Bank lenders typically apply more conservative criteria to structural works.
• •Exit strategy: whether the property will be sold, re-leased, or held post-refurbishment. A credible exit supports approval and affects the loan term offered.

The Refurbishment Finance Process: What to Expect

1. 1.Initial assessment: share your scope of works, property details, and income position with Settled Funding Group. Joseph Farhat reviews the file and identifies lenders whose policy fits your asset type and refurbishment scope before submitting.
2. 2.Application prepared with the scope of works, contractor quotes, income documents, and property details including current tenancy status where relevant.
3. 3.Lender orders an independent valuation on the property, incorporating the planned works where possible.
4. 4.Approval issued and loan documents prepared, typically two to four weeks from submission depending on the lender and complexity of the works.
5. 5.Staged drawdowns aligned to refurbishment milestones, with a final inspection and release of any retention at practical completion. Settled Funding Group coordinates each stage throughout the project.

Indicative Finance Options

Refurbishment Finance Broker

Refurbishment finance sits between standard lending and full construction, and lender appetite for it is fragmented. Each lender treats the scope of works, the contractor, the property type, and the exit differently, and many banks are cautious about commercial or mixed-use refurbishment. A scenario one lender declines is funded comfortably by another. Applying to the wrong lenders wastes time and adds avoidable credit enquiries. A broker who knows which lenders actually fund refurbishment, on what scope and terms, goes straight to those with appetite, including non-bank and specialist funders that most borrowers cannot approach directly.

Settled Funding Group represents you, the borrower, not the lender. Joseph Farhat reviews your scope of works, your property, and your exit, then matches the scenario to the right lender from our 90+ panel and negotiates terms on your behalf. For unique scenarios, we can introduce you to private finance options. We prepare and manage the application end to end, from assessment through to drawdown. As a broker, we are typically paid by the lender on settlement, so in most cases there is no direct cost to you. If your refurbishment is complex, time-critical, or has been declined elsewhere, talk to us early and we will tell you honestly what is achievable.