Unit Development Finance

Building a residential unit project requires development finance assessed on fundamentally different criteria to a standard construction loan. Lenders look at gross realisation value, loan-to-cost ratio, presales position, QS report, and exit strategy rather than just serviceability and LVR. Settled Funding Group works with developers building from 2 to 20 residential units, matching each project to the right lender on the 90+ panel. Joseph Farhat reviews the project scope, site, and DA before any submission to ensure the right lender tier is approached first.

Who This Is For

• •Developers building 2 to 20 residential units on a DA-approved site who need development finance rather than a standard construction loan.
• •Investors building a unit block for long-term rental income, with an exit via portfolio refinance rather than individual sales.
• •Those building attached or detached units on a single or subdivided title where strata titling will occur at completion.
• •Developers building strata-titled units for individual sale, with presales supporting the loan application.
• •Owner-developers building a small unit complex with one unit for personal use and the remainder for sale or lease.
• •Developers scaling up from a single dwelling or duplex to their first multi-unit project.

How Unit Development Finance Works

Unit development is assessed as development finance, not standard construction. Lenders assess GRV and LTC, DA approval, the number and mix of units, presales position, QS report, builder contract, developer experience, and exit. Projects of 2 to 5 dwellings can often access lower presales thresholds than larger projects, making non-bank lenders particularly well suited to smaller unit blocks. Joseph Farhat identifies the right lender from the panel based on the project scale and structure before a formal application is prepared.

A clear example of this type of finance in practice is the Wallsend townhouse case study. A four-unit build-to-hold project funded by a non-bank lender, it demonstrates how a well-structured unit development can access competitive development finance without requiring major bank presales thresholds.

What Lenders Assess for Unit Development Finance

• •DA approval: the DA must be current and cover the full unit count and configuration. Any condition restricting dwelling numbers must be resolved before submission.
• •GRV and LTC: the combined gross realisation value of all units and the loan-to-cost ratio against total development cost are the primary metrics for maximum loan exposure.
• •Presales position: major banks typically require presales covering the full loan amount for projects of 5 or more units. Non-bank lenders are more flexible for smaller projects of 2 to 5 dwellings in strong locations.
• •QS report: a quantity surveyor report is required by most lenders to verify the construction cost budget and confirm the project feasibility.
• •Developer experience: prior unit projects strengthen the application significantly. First-time developers are considered by non-bank lenders when the project is well-structured and the builder has a strong track record.
• •Builder contract: a fixed-price contract with a licensed builder is the standard requirement. Non-bank lenders may accept variations in limited circumstances.
• •Exit strategy: whether the exit is via strata unit sales, portfolio refinance, or a combination, the lender needs a clear and realistic repayment plan before approval.

The Unit Development Finance Process: What to Expect

1. 1.Feasibility review and DA check: Joseph Farhat reviews the project feasibility, DA approval, unit count, and developer profile to identify the right lender tier before any formal submission.
2. 2.Application prepared with DA, QS report, presales contracts (if applicable), builder contract, feasibility study, and income documents.
3. 3.Development valuation: an independent valuer assesses the GRV across all units on a per-unit and whole-project basis.
4. 4.Approval: typically two to four weeks from submission depending on the lender and project complexity.
5. 5.Staged construction drawdowns released at milestones. At completion, individual unit sales settle progressively and discharge the facility, or the portfolio is refinanced to a long-term investment loan.

Indicative Finance Options

Unit Development Finance Broker

Unit and apartment development is where lender appetite splits most sharply. Banks, non-bank lenders, and specialist funders assess presales, loan-to-cost, gross realisation value, and developer experience very differently, and a project one lender declines is funded comfortably by another. A broker who knows which lenders genuinely have appetite for your unit project, its size, location, and stage saves you weeks of wasted applications, protects your credit file from unnecessary enquiries, and gives you access to non-bank and specialist development funders most developers cannot approach directly.

Settled Funding Group represents you, the borrower, not the lender. Joseph Farhat reviews your feasibility, presales position, gross realisation value, and builder contract, 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.