At Formation Finance, we specialise in property development loans, offering funding solutions for every phase of your project.
Whether you’re acquiring land, covering soft costs, financing construction, or refinancing completed developments, we provide flexible and fast financing to help developers bring their projects to life.
✔ Funding for All Development Stages – From land purchase to construction and residual stock loans.
✔ Access to 50+ Lenders – We secure financing through banks, non-bank lenders, private lenders, family offices and private investors.
✔ Competitive Loan Terms – Competitive rates and flexible repayment terms designed for property developers.
✔ Quick Approvals – Get approvals within 48 hours to get your project moving with certainty.
✔ No Pre-Sale Requirements for Select Development Loans – Start construction without delays and maximise project revenue.
| Development Site Loans | Construction Loans | Residual Stock/ Bridging Loans | Mezzanine Loans | |
|---|---|---|---|---|
| LVR (up to) | 70% | 70% | 70% | 75% |
| Loan Term | 3-24 months | 12-24 months | 3-24 months | 3-24 months |
| Rates (from) | 8.49% p.a. | 9.99% p.a. | 8.49% p.a. | 15.00% p.a. |
Property development loans provide funding for residential, commercial, or mixed-use projects, covering land acquisition, construction, and refinancing upon completion (e.g. residual stock loans).
Property development finance is typically structured in stages, with funds released progressively as construction milestones are met.
Property developers, builders, and investors commonly using a corporate entity (e.g. company, trust) can apply for property development finance to fund their projects.
Loan amounts vary based on project size, costs, and expected returns. Lenders assess feasibility, borrower experience, and market conditions.
Loan amounts are generally calculated using LVR (Loan to Value Ratio). It compares the loan amount to the appraised ‘as is’ value and ‘as if complete’ / ‘upon completion’ value of the property or project being financed.
Formula:
LVR = (Loan Amount / Property Value) × 100
For example, if you’re buying a development site worth $1,000,000 and borrow $700,000, your LVR would be 70%.
For construction loans, if you’re developing 10 townhouses worth $10,000,000 upon completion and borrow $7,000,000, your LVR would be 70%.
