At Formation Finance, we know a lot about property development loans. We offer money help for each step of your project.
If you need to buy land, pay for early costs, pay for building, or refinance finished projects, we have fast and flexible loans to help developers make their plans a reality.
✔ Money for All Project Stages – From buying land to building and loans for leftover properties.
✔ Reach 50+ Lenders – We find money through banks, other money places, private lenders, family money, and private investors.
✔ Good Loan Terms – Great rates and easy payback plans are made for property builders.
✔ Fast Approvals – Get a “yes” in 48 hours to move your project ahead with sureness.
✔ No Need to Sell First for Some Loans – Start building right away and get the most money from your project.
Whether you’re looking for land loans to secure your next site or need streamlined construction loans to bring your blueprints to life, our solutions are designed for speed, scale, and certainty.
| 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%.
