Off-the-Plan Finance

Presales are the backbone of off-the-plan development finance. For apartment, townhouse, and house-and-land projects where the developer sells before construction begins, the strength and coverage of the presale contracts determines how much the lender will lend and on what terms. Major banks require presales covering the full loan amount with unconditional contracts before they will approve a development facility. Non-bank lenders accept lower thresholds and conditional contracts, making them a better starting point for projects in their early presales phase. Settled Funding Group works with developers at all stages of the presales process. Joseph Farhat reviews the contract coverage, the project status, and the developer profile to identify the right lender from the 90+ panel.

Who This Is For

• •Developers selling apartment, townhouse, or house-and-land projects off the plan prior to or during construction.
• •Those who have presale contracts exchanged and need a development facility structured around those contracts.
• •Developers whose lender requires presales before releasing construction funds and who need to manage the presale coverage process.
• •Investors building projects where presales are the primary exit mechanism and the development facility is sized against that pipeline.
• •Developers seeking a finance facility that incorporates presale contracts as part of the security structure, particularly where a DA is granted but construction has not commenced.
• •Those building in high-demand markets where off-the-plan sales are achievable before DA approval is granted, and who need early finance.

How Off-the-Plan Finance Works

Off-the-plan development finance is a facility structured around the presale contracts. The lender reviews the presale coverage (the percentage of the loan amount covered by exchanged contracts), the quality of those contracts (unconditional vs conditional, deposit held), the DA and project status, the builder contract, and the feasibility. Strong presales covering the full loan amount are the single biggest factor in unlocking bank development finance. Non-bank lenders accept lower coverage thresholds, making it possible to access finance before the presales book is full. Joseph Farhat coordinates the presales review and lender selection to identify the right facility for each project stage.

What Lenders Assess for Off-the-Plan Finance

• •Presale contracts: the quantity and quality of exchanged presale contracts, including whether they are conditional or unconditional, the deposit amount held, and the buyer profile. Banks require unconditional contracts covering 100% of the loan; non-bank lenders accept lower thresholds.
• •DA and project status: the planning approval stage, any outstanding conditions, and the timeline to construction commencement. A current DA reduces risk and improves lending terms.
• •GRV and LTC: the gross realisation value across all presale contracts and unsold stock, and the loan-to-cost ratio against total development cost.
• •Builder contract: a fixed-price contract with a licensed builder is the standard requirement across most development lenders for off-the-plan projects.
• •Developer experience: prior off-the-plan development projects and a track record of delivering on presale commitments strengthen the application significantly.
• •Completion timeline: the expected construction program from commencement to practical completion. Longer timelines increase the risk of presale contract fallout, which lenders factor into their assessment.

The Off-the-Plan Finance Process: What to Expect

1. 1.Initial review: Joseph Farhat reviews the presale contracts, the DA status, the project feasibility, and the developer profile to identify the right lender and confirm the presale coverage required before any application is prepared.
2. 2.Application submitted with presale contracts, deposit confirmation, DA, QS report, builder contract, project feasibility, and income documentation.
3. 3.Development valuation ordered by the lender to confirm the GRV across all presale and residual stock.
4. 4.Approval issued, typically two to four weeks from submission. Construction drawdowns released as each stage is completed and inspected.
5. 5.Presale settlements discharge the loan progressively as construction completes. Residual unsold stock is financed separately if needed via a residual stock facility.

Indicative Finance Options

Off-the-Plan Finance Broker

Off-the-plan lending is one of the more nuanced corners of development finance. Lenders differ widely on how they treat presale contracts, qualifying presales, deposit bonds, sunset clauses, and settlement risk, and bank appetite for off-the-plan exposure tightens and loosens with the market. A facility one lender will not touch is funded readily by another. A broker who knows which lenders accept your presale profile and project type saves you weeks of wasted applications, protects your credit file from unnecessary enquiries, and opens access to non-bank and specialist funders that most developers cannot reach directly.

Settled Funding Group represents you, the borrower, not the lender. Joseph Farhat reviews your presales position, qualifying contracts, project feasibility, and settlement exit, then matches the project to the right lender from our 90+ panel and negotiates terms on your behalf. We prepare and manage the submission end to end, from indicative assessment through to your first 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 project is complex, time-critical, or has been declined elsewhere, talk to us early and we will tell you honestly what is achievable.