It’s specialised funding intended to cover costs associated with developing residential or commercial properties, from initial land acquisition through to construction and sale.

Construction finance provides staged payments throughout the building process, ensuring funds are available as construction milestones are reached.

Yes, financing options are available for rural land development, including for agricultural projects or converting land for residential or commercial use.

Lenders typically require a detailed project plan, cost estimates, and evidence of experience in property development, along with financial statements.

Interest rates for development finance can be higher due to the perceived increased risk compared to standard mortgages but vary based on lender and project specifics.

Yes, development finance can cover land purchase as part of a broader development project.

Loan amounts depend on the lender, project scope, and your financial situation, often up to a percentage of the project’s gross development value.

Yes, refinancing options are available and can provide better terms as the project progresses or is completed.

The process can vary, ranging from a few weeks to several months, depending on the lender and complexity of the project.

While not mandatory, a broker can provide valuable expertise in navigating the loan market and securing the best financing terms.

You may need to negotiate additional financing or restructure your existing loan to cover cost overruns.

Yes, loans are available for property subdivision projects, subject to lender approval based on project feasibility.

Commercial finance often involves larger sums and slightly higher risks, affecting loan terms and interest rates compared to residential projects.

Non-bank lenders offer alternative financing solutions, often with more flexible terms for property development projects.

Consider factors such as loan terms, interest rates, flexibility, and the lender’s experience with similar projects.

Yes, development finance can also fund significant renovation or refurbishment projects for existing properties.

Lenders typically require the project land or property as security, with additional guarantees sometimes needed.

Development loan rates are generally higher due to the increased risk and shorter term nature of the funding.

First-time developers can obtain finance, though it may be more challenging without a proven track record.

Risks include project delays, cost overruns, and market downturns, which can impact the project’s profitability and loan repayment.