Development finance
Development finance for builders and developers.
Site acquisition, construction and subdivision funding from bank and private lenders, structured around your feasibility and timeline.
Development finance in short
Development finance funds the purchase and construction of property projects, with lenders assessing the completed value and a detailed feasibility. MKS Lending compares bank and private development lenders and structures drawdowns so your builder is paid as stages are completed.
How development finance works
Lent on the end value, not just today's.
Development finance works differently to a standard mortgage. Lenders assess the predicted value of the project once it is completed, as well as the borrower's experience and financial position.
The lender will want a detailed feasibility showing the proposed use of the site, costs, and expected sales or valuation. Input from your accountant, architect, builder and real estate agent is often needed, and some lenders will require pre-sales.
Construction drawdowns
Paid as the project progresses.
Construction funding is drawn down and paid to the builder as stages are completed, with the lender's quantity surveyor or valuer inspecting the works before each payment.
If you already own the site, its equity may count towards your contribution. If you are buying the site too, the land settlement is usually the first drawdown.
Lenders typically need the feasibility, approved plans and permits, and a building contract with an approved builder.
Projects we fund
Small sites to multi-unit projects.
Duplexes and townhouses
Small residential developments, including owner-builders with the right experience.
Multi-unit projects
Apartments and larger residential projects.
Subdivisions
Land subdivision and englobo funding, with capitalised interest options.
Residual stock
Loans against completed but unsold stock while you sell.
Business lending, handled by people who speak your language
Our team has arranged business, commercial and development finance since 1985, often working directly with your accountant and solicitor so the loan supports the bigger plan.
Client reviews
What our clients say.
Teo found a loan from a private lender who understood property development and delivered the solution we needed.
Teo understands finance and made the loan process stress-free.
Free loan review
Talk about your project
Tell us a little about your plans. A broker will call you, usually within one business day, to talk through your options. No cost and no obligation.
We listen first
A short chat about your goals, income and timing.
We compare 50+ lenders
30+ banks and 20+ private lenders, not just one bank's products.
You decide
We explain the options in plain English. There is no pressure to proceed.
Questions
Frequently asked questions
How much can I borrow for a development?
Lenders usually cap the loan as a percentage of total development cost and of the end value. Private lenders may go higher than banks, at a higher rate.
Do I need pre-sales?
Banks often require pre-sales for larger projects. Many private and non-bank lenders do not, which can help smaller developers move faster.
Can interest be capitalised?
Yes, many development lenders capitalise interest so you are not making repayments during construction. It is added to the loan balance and repaid on sale or refinance.
What documents do lenders need?
Typically a feasibility study, approved plans and permits, a fixed-price building contract, builder details, your experience and financial position.
Ready for a better home loan?
Book a free, no-obligation loan review. We compare the market and show you exactly what is possible.