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Property Development Loans

Get the finance you need to get your project up and running

Accessible property development loans

There is a growing need for alternative financing with respect to property development lending. The main reason for this is that major lenders such as banks are becoming extremely risk averse in the development space.

The security of the project is not enough and, in many instances, nor is a substantial number of pre-sales with respect to commercial projects. At Simply Funds we can provide financing up to $50M across both residential and commercial projects.

What is property development finance?

Property development loans relate to finance that is obtained for the construction of multiple properties/dwellings on one title. Lenders split property development into two categories, namely residential and commercial.

Residential property development finance is for smaller developments, usually up to 4 dwellings. The percentage of land and construction costs that can be borrowed will vary depending on the number of dwellings.

Commercial property development loans are for projects that 5 or more dwellings and a minimum loan size of $1 million. Development loans generally offer stages payments including deposit, base, frame, lock up and fixing stage.

Development loans made easy

Unlike many other alternative financial institutions, we offer loans up to $50 million dollars. This is ideal for property development financing for both residential and commercial dwellings.

No need to delay your latest development

Increased regulatory pressure has seen banks take a far more conservative stance on development lending in recent years. Their risk appetite has decreased significantly, and their lending criteria become more complex. Getting an approval can take months and receiving staged payments in a timely matter can be difficult. At Simply Funds, we take a more balanced approach to development loans. Our systems for calculating risk are more flexible with reputation and prior success considered valuable.

Development loans with Simply Funds

Fast and reliable alternative financing
Interest capitalisation
Residential and commercial dwellings
Staged payments: deposit, base, frame, lock-up, and fixing
Borrow up to $50 million

Our team of experts are on hand to share their knowledge and expertise of the mortgage business. They can help you make the right financial decisions.

Development Loans FAQ

What is a property development loan?

Can you get a loan for property development?

At Simply Funds we accept applications from all parties including individuals, residential developers, companies, and building firms. We can lend up to $50 million with application settled and funded within days. Complete our simple application process and talk to one of our specialist staff you will determine the most suitable course of action.

How does property development finance work?

Property development finance has several different features to a normal home loan. These include interest capitalisation and staged payments. Interest capitalisation allows borrows to have the interest added to their total loan amount with no payments made until the completion of construction. In addition, development finance offered staged payments. These are usually separated into: deposit, base, frame, lock up and fixing stage.

Why is it difficult to get a development loan from a bank?

Increased regulatory pressure has seen banks take a hard stance on development lending. Their risk appetite has decreased significantly, and their lending criteria become very stringent. This makes their application process extremely complicated with approval and funding taking months.

Can you get a loan from the bank to build a house?

Those who require funds to build a house can obtain funding for a bank or alternative lender. The interest rates available will vary as will the lending criteria. Banks will require extensive documentation including council-approved plans and building contracts, with many also requiring some form of deposit.

What is the best loan for building a house?

Depending on what you are building, a construction loan or development loan would be most suitable. For construction involving multiple dwellings you will most likely have to apply for a development loan. One of the most important features to look for is interest capitalisation. This allows you to capitalise the interest and not start making repayments until construction is complete.

How do I start property development?

This is a common question asked by individuals you are looking to undertake development on their primary residence. In many instances they do not wish to use the services of a building company and wish to develop as an owner-builder. You should research and understand details of council requirements or restrictions before applying for a development loan.

Can you get a development loan without a deposit?

Most banks require some form of deposit or down payment for development loans. They may also have restrictions on the total amount that can be borrowed. This may be capped at the total value of the construction contract. At Simply Funds our lending criteria is more flexible as we take a more balanced approach. Our systems for calculating risk consider factors such as reputation and prior success.

What is the difference between residential and commercial property development?

Residential property development finance is for smaller developments, usually up to 4 dwellings. In comparison, commercial property development loans are for larger projects that have 5 or more dwellings and a minimum loan size of $1 million.

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