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Construction loans from Formation Finance turn blueprints into reality. Whether you are developing townhouses, apartments, land subdivisions, mixed-use, industrial or commmercial projects, we provide fast and flexible constructions loans that can help you start and complete your projects sooner.
Loan Amount
$1M to $30M+
LVR
Up to 70% (on GRV ex GST)
Term
12–24 months (aligns with your project timeline)
Interest Capitalised
Preserve cash flow during construction
No Pre-Sales
Start now, sell later for higher
“A Melbourne developer secured $7M in construction finance through us, started heir Doncaster townhouses development with no presales and minimal cash equity, and sold all townhosues upon completion for high retail price”
Construction finance involves risk. Outcomes depend on project delivery and market conditions:
Valuation and market risk: GRV may change and impact LVR
Time and cost risk: delays, variations, and cost overruns can affect cash flow
Exit risk: refinancing and sale timelines may take longer than planned
We’ll only recommend solutions that fit your circumstances, and all terms are subject to assessment and lender approval. If you need independent support, you can check a provider’s licence on ASIC registers.
Potential pathway to Residual Stock / Bridging solutions post-completion (where suitable)
Construction loans are structured to fund construction projects progressively. Instead of receiving the full loan upfront, funds are distributed through progress payments monthly or per stage. This schedule outlines when and how much of the total loan amount will be released at each phase of construction. During the build, interest is only charged on the funds that have been drawn, not the entire loan amount—making construction loans a cost-effective way to manage cash flow. We also offer private construction loans for developers and builders seeking faster approvals and more flexible terms.
Yes, absolutely — duplex construction projects are commonly funded through both standard construction loans and low doc construction loans, depending on your needs and documentation.
If you’re a developer or investor building a duplex, non-bank lenders can offer more flexible terms and faster approvals than traditional banks. Whether it’s for subdivision, house-behind-house, or side-by-side dual occupancy, we can tailor construction loan solutions to match the scale and timeline of your project.
Approval times can range from a few days to a few weeks, depending on the complexity of your project and the documentation provided. Our streamlined process ensures faster decisions compared to traditional banks.
Not always. While some projects benefit from having pre-sales in place, especially for larger multi-unit developments, we assess each application individually. Our flexible approach means we may be able to offer funding without pre-sales, depending on the strength of the project and the developer’s experience.
