Property Development Finance

Property development finance is a specialist lending facility used to fund the construction and delivery of residential or commercial development projects. It differs from a standard construction loan in scope and structure: typically funding both the land and construction components on a single facility, with drawdowns tied to project milestones, and the loan repaid from pre-sales settlements or refinance at completion.

Settled Funding Group arranges development finance from $200,000 to $15,000,000. The borrowable amount depends on the project gross realisation value (GRV), cost-to-complete, pre-sales position, and the lender's appetite for the project type and developer experience. Submit your feasibility and Joseph Farhat will provide an indicative assessment of what is achievable on your project.

Pre-sales requirements vary by lender. Bank lenders typically require pre-sales covering 100% of the loan amount or more before approving a development facility. Non-bank lenders often have lower or no pre-sales requirements, particularly for smaller projects or experienced developers. SFG's panel includes lenders with different pre-sales thresholds, and Joseph Farhat will identify the right fit for your project's pre-sales position.

A standard construction loan funds a single dwelling build with a fixed price contract, and is typically assessed on the borrower's income and the completed property value. Development finance funds multi-dwelling or commercial projects and is assessed on the project feasibility, gross realisation value, pre-sales, and developer experience. The loan structure, drawdown mechanism, and exit are all different. SFG advises on the right product for your project type.

Yes, with the right project profile. First-time developers have access to non-bank development lenders through SFG's panel, and for unique scenarios we can introduce you to private finance options, particularly where there is a strong pre-sales position, a fixed-price contract with an experienced builder, a DA-approved site with a clear feasibility, and sufficient equity in the deal. Banks are more restrictive on developer experience. Joseph Farhat will be direct about what is achievable given your background.

Development lenders assess: the project feasibility (total development cost vs gross realisation value), the DA approval and planning risk, the construction contract (fixed price vs cost-plus), the builder's track record, the pre-sales position, the developer's experience and financial capacity, and the exit strategy. Non-bank lenders weight the asset and project quality more heavily than developer financials. SFG prepares submissions to align with each lender's assessment model.

Development finance approval is more involved than a standard construction loan. Bank approvals typically take 4 to 8 weeks. Non-bank lenders can approve in 2 to 4 weeks for well-prepared submissions. Private lenders can move faster for smaller projects where the security and exit are clear. SFG prepares complete submission packages to minimise back-and-forth and reduce approval timelines.

When individual dwellings or lots are sold, the net sale proceeds are applied to reduce the development facility in an agreed order. Lenders typically require that a minimum percentage of the loan is repaid from each sale, with the remainder released to the developer. If the project is being held rather than sold, the development loan is refinanced to a long-term investment facility at completion. SFG can arrange the exit finance alongside the development facility.