Development funding from lenders who understand your project's end value, presales, and staged payments.
- Indicative assessment within 2 business days
- Loans from $500K to $20M, assessed on gross realisation value (GRV), what the finished project is expected to sell for, and total development cost
- Developers, builders, and experienced investors, with first-time developers considered
- Residential, mixed-use, boarding house, and land subdivision projects
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead), and no-doc options, including lenders who do not require presales
Development finance funds projects built to sell or to hold for income, and it is assessed on the numbers of the project rather than primarily on you. Lenders test the feasibility: what the finished development will realise, what it costs to build, how much of it is presold, and whether the margin survives if either side of that moves. Two developers with the same site can get very different terms depending on how the feasibility is presented and which lender it goes to. Joseph Farhat and his team will tell you honestly and quickly what is achievable for your project.
Who we can help access finance
- Developers building townhouses, duplexes, and small unit projects for sale.
- Investors building multi-dwelling projects to hold and refinance to a long-term facility on completion.
- Developers of purpose-built boarding houses and rooming accommodation under state boarding house legislation.
- Those converting an existing commercial or residential building under a change of use approved in a DA (development approval).
- Developers with a DA in hand who need site acquisition and construction funded together.
- Projects with reduced or nil presales, where the lender panel narrows to those who assess on feasibility rather than presale cover.
- Developers whose existing facility has stalled mid-project and needs refinancing to reach completion.
- Self-employed developers whose income does not present neatly but whose project numbers are strong.
How Development Finance Works
The lender sizes the facility against two measures. Loan to cost, or LTC, is the advance as a share of total development cost including land, construction, and soft costs. Loan to gross realisation value, or GRV, is the advance against what the completed project is expected to sell for. Banks generally sit around 70% LTC and 60% GRV and want presales covering a meaningful share of the debt. Non-bank lenders go higher on both and are far more flexible on presales, at a higher rate. Funds are released in progress draws against quantity surveyor (QS) certification, interest is usually capitalised into the facility, and the loan is repaid from sales or a refinance on completion. Joseph Farhat and his team review the feasibility, the DA, and the builder, match the project to the right lender from the 90+ panel, and manage the application through to practical completion.
What Lenders Assess for Development Finance
Feasibility
the project margin on total development cost. A thin margin leaves no room for a variation or a softening market, and lenders test it accordingly.
GRV evidence
independent valuation supported by genuine comparable sales, not the developer’s expectation. This is the number most often revised down.
Presales
how much of the debt is covered by unconditional contracts. Banks usually want substantial cover. Several non-bank lenders will consider reduced or nil presales at a lower loan-to-value ratio (LVR), the loan as a share of the property's value.
DA approval and conditions
the DA must match what is being built, and any conditions affecting staging, contributions, or timing need to be understood before funding.
Builder and contract
a licensed builder with relevant project experience and a fixed price contract is the strongest position. A QS report is generally required.
Developer experience
prior completed projects of similar scale carry real weight, particularly where presales are reduced.
Exit
sale of the completed stock, or a refinance to a long-term facility if the project is being held. The lender needs the exit to be credible on the timeline.
Specialist use classes
boarding houses, childcare, and similar assets are assessed on their income model as a going concern, and only some lenders have appetite.
Boarding House and Rooming Accommodation Projects
Boarding house development sits in specialist commercial-residential territory. Most standard development lenders have no boarding house appetite, and those that do assess the project on the per-room income model as a going concern rather than on a straightforward residential GRV. Compliance with the relevant state boarding house legislation, including the Boarding Houses Act 2012 in New South Wales, is the first thing a lender checks, and missing or ambiguous compliance documentation is the most common reason these applications are declined. The DA must approve the boarding house use and specify the room count, common facilities, and any management conditions. Builder experience with kitchenettes, en-suites, and fire separation requirements is assessed closely. Joseph Farhat and his team identify the lenders on the panel with genuine boarding house experience before any application is submitted.
A direct example of what is achievable is the Ashfield boarding house case study, a $10.5M no-doc private facility for a 30-room boarding house in Ashfield, New South Wales. It shows that large-scale boarding house projects can be funded by the right specialist lender, even without standard income documentation.
The Development Finance Process: What to Expect
- Talk to Joseph Farhat and his team about the site, the DA, and the feasibility. You will get an honest read on what is fundable, including if the numbers do not support the project as structured.
- Provide the basics: the feasibility and cost plan, the DA and plans, the builder contract and licence, a QS report, any presale contracts, and your own financials or bank statements.
- We match the project to the lenders on the panel most likely to fund it at the LTC and GRV you need. Presale requirements and use-class appetite vary enormously, so this step decides the outcome.
- The lender orders an independent valuation and QS review and issues an approval setting out LTC, GRV, rate, drawdown schedule, and conditions. We go through it with you before you sign anything.
- Site settles if required, construction begins, and progress draws are released against QS certification through to practical completion, then sales settle or the project refinances to a long-term facility.
Indicative Finance Options
| Lender Type | Indicative Rate | Max LTC | Max GRV | Typical Loan Range | Key Consideration |
|---|---|---|---|---|---|
| Bank | From ~7% p.a. | 70% LTC | 60% GRV | $1M to $20M | Substantial presale cover and full financials usually required |
| Non-Bank Lenders | From ~8.5% p.a. | 80% LTC | 65% GRV | $500K to $20M | Reduced or nil presales considered; alt-doc options; specialist use classes |
| Private Finance | From ~10% p.a. | 85% LTC | 70% GRV | $1M to $20M | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for development finance
We represent you, not the lender
Joseph Farhat and his team act in your interest from the first conversation through to practical completion.
Presale policy decides most deals
the gap between a lender wanting substantial presale cover and one assessing on feasibility alone can be the difference between proceeding this quarter and next year.
Feasibility presentation matters
the same project put to a lender properly, with a defensible GRV and a real contingency, gets a materially different answer.
Specialist use classes need specialist lenders
boarding houses, childcare, and similar assets are funded by a small group of lenders, and we know who they are.
We will tell you if the numbers do not work
a project that cannot carry its own feasibility is not one we will push into an application.
One conversation, not five applications
development enquiries take time to assess, each application can cost you weeks inside a DA or option period, and each credit enquiry is recorded on your file.
90+ lenders on one panel
bank, non-bank, and specialist, so a presold project with full financials can go to a bank at a sharper rate and a nil-presale project still has options.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if you are working to a site settlement or an option expiry, tell us early and we will tell you what is realistically achievable.
Frequently asked questions
What is development finance?
Development finance funds property projects built to sell or to hold for income, such as townhouses, unit developments, and boarding houses. It is assessed on the project rather than primarily on the borrower: the lender tests the feasibility, the gross realisation value, the total development cost, and the exit. Funds are released in progress draws against quantity surveyor certification, interest is usually capitalised into the facility, and the loan is repaid from sales or a refinance on completion.
What are LTC and GRV, and why do both matter?
Loan to cost is the advance as a share of total development cost including land, construction, and soft costs. Loan to gross realisation value is the advance against what the finished project is expected to sell for. Lenders apply both and the lower of the two governs. A project can pass on LTC and fail on GRV if the valuation comes in under the developer’s expectation, which is the most common reason a facility is smaller than hoped.
Do I need presales?
It depends on the lender. Banks generally want unconditional presale contracts covering a substantial share of the debt before they will fund. Several non-bank lenders on the panel will consider reduced or nil presales, assessing the project on feasibility, location, and your track record instead, at a lower LVR and a higher rate. For projects being built to hold rather than sell, the assessment shifts to the completed income and the refinance exit.
Can you finance boarding house and rooming accommodation projects?
Yes, and it is a niche we work in regularly. Most standard development lenders have no boarding house appetite, so the first task is identifying the lenders who genuinely do. They assess the project on the per-room income model as a going concern rather than a standard residential GRV. Compliance with the relevant state boarding house legislation and a DA that clearly approves the use, room count, and common facilities are the first things checked. Missing compliance documentation is the most common reason these applications are declined.
How much can I borrow for a development?
Bank development lending generally sits around 70% of total development cost and 60% of GRV. Non-bank lenders commonly reach 80% LTC and 65% GRV, and shorter-term private options can go higher again. Facilities commonly run from $500,000 to $20,000,000. Because the lower of the LTC and GRV tests governs, your equity contribution depends on both your cost plan and the valuation. Joseph Farhat and his team will run the numbers before you commit to a site.
Can I get development finance with low-doc, no-doc, or alt-doc?
Often, yes. Development lending is assessed primarily on the project rather than on your personal income, so several non-bank lenders will proceed on BAS, bank statements, or an accountant declaration rather than full financials. No-doc facilities exist for strong projects at a lower LVR and a higher rate, and are more common in the specialist and private end of the market. The project numbers still have to stand up regardless of the documentation path.
Do you work with borrowers with bad credit?
Yes, we do. Defaults, past arrears, or a mark on your file do not rule you out of development finance, and it is not something we will make you feel awkward about. Development is one of the more forgiving products in this respect, because lenders are assessing the feasibility, the GRV, and the exit far more heavily than your credit history. Several lenders on our panel will price for the risk rather than decline it, particularly where the project margin is strong. What helps most is telling us early so we approach the right lender first instead of adding enquiries to your file. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
What does development finance cost?
Bank development lending starts from around 7% per annum, non-bank from around 8.5%, and private options from around 10%. Beyond the rate, expect a line fee, an establishment fee often expressed as a percentage of the facility, valuation and QS costs including progress inspections, and legal fees. Because interest is generally capitalised, the total cost is driven heavily by how long the project actually takes. Joseph Farhat and his team will model the full cost against your program before you proceed.
Why work with Settled With Joe to finance your development?
Because you get one conversation instead of a round of applications, and because on development the lender choice is the deal. Most of the people we help are developers, builders, and investors working to a site settlement, an option expiry, or a DA that has just landed. Those situations are not unusual to us and there is no judgement in the conversation. What matters is the feasibility, the GRV evidence, and the exit. Presale requirements and appetite for specialist use classes like boarding houses vary enormously between lenders, and knowing which lender will fund a nil-presale project or a 30-room boarding house is not something a developer can easily find out. We will also tell you if the numbers do not work rather than push the file into an application. Our panel covers 90+ bank, non-bank, and specialist lenders. We are based in Sydney and work with borrowers Australia-wide. Joseph Farhat and his team will tell you honestly and early whether we can help and what is realistically achievable in your timeframe.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with development finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges development finance Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Location matters on this product: lenders apply lower GRV limits and require stronger presale cover in smaller markets where comparable sales evidence is thin. Joseph Farhat and his team will identify which lenders on the panel are the best fit for your project and timeframe.
