Property Development Finance
Our Property Development Finance Services Include:
- Land Acquisition & Land Banking Finance
- Construction Loans (Residential & Commercial)
- Pre-Sales & Non-Pre-Sale Funding Options
- Equity Release / Mezzanine Funding
- Residual Stock Loans
- Refinancing & Portfolio Consolidation
- Joint Venture Funding Support
Whether you’re building townhouses, apartment blocks, warehouses or commercial spaces, we’ll help structure the right funding approach — based on feasibility, stage, and strategy.
Why Black Book Finance?
✅ Deep expertise in construction and development finance
✅ Strong relationships with banks, second-tier lenders & private funders
✅ Flexible structures for low-pre-sale or complex planning scenarios
✅ End-to-end support from acquisition through to completion and settlement
✅ Local knowledge of the Geelong and Melbourne property development markets
🔹 General Development Finance
What is property development finance?
Property development finance is a specialised type of funding used to cover the costs of acquiring land, building residential or commercial property, or completing subdivision projects. It includes land banking, construction finance, and residual stock loans.
How is development finance different from a standard commercial loan?
Unlike traditional commercial loans, development finance is typically interest-only during the construction period and released in stages (drawdowns) aligned with build progress. Lenders assess project feasibility, pre-sales, and exit strategy.
How much can I borrow for a property development project?
Loan amounts vary based on project size, location, feasibility, and pre-sales. You can generally borrow between 65%–75% of Total Development Cost (TDC) or 70%–80% of the end value (GRV), depending on the lender.
Do I need to provide pre-sales to get funding?
Not always. While many lenders require pre-sales to mitigate risk, low or no pre-sale options are available through private or non-bank lenders for experienced developers or smaller projects.
🔹 Construction Loan Structure & Stages
How does construction funding work?
Construction loans are typically structured with progress payments linked to stages of the build (e.g. slab, frame, lock-up). You only pay interest on the drawn balance, not the full loan amount upfront.
What is TDC (Total Development Cost)?
TDC refers to all costs involved in completing the project — including land, construction, professional fees, contributions, and contingency. Lenders often base loan limits as a percentage of TDC.
Can I use equity in another property to contribute to the project?
Yes – we can help structure your development loan using cross-collateralisation or equity release from existing properties to reduce the required cash contribution.
Do you assist with funding the GST component?
Yes – many lenders fund the full contract amount including GST. However, some may require you to fund GST separately or provide proof of BAS refunds. We'll guide you through the requirements.
🔹 Development Scenarios & Client Types
Can first-time developers get property development finance?
Yes – while experience helps, we work with lenders who consider joint ventures, strong builder relationships, or experienced project managers to support new developers.
Do you help with small-scale developments (e.g. 2–4 townhouses)?
Absolutely. We help with small to medium residential projects including duplexes, townhouses, and boutique apartment blocks across Victoria.
Can I get funding for land banking or land subdivision?
Yes – we arrange land banking finance for future projects and subdivision finance for rezoned or titled blocks. Some lenders allow capitalised interest and deferred repayments.
Do you finance commercial developments (e.g. warehouses or office)?
Yes – we support both residential and commercial developments including warehouses, medical centres, office suites and mixed-use sites.
🔹 Private Funding & Non-Bank Solutions
What if I don’t meet the banks' lending criteria?
We work with non-bank and private lenders who offer flexible credit policies, lower reliance on pre-sales, and faster approvals — ideal for tight timelines or complex deals.
What is mezzanine finance?
Mezzanine finance is a second-tier loan layered above the senior debt to top up your funding. It’s useful when you have a funding shortfall and want to reduce your cash contribution.
How quickly can I get approval for development finance?
Private and non-bank development loans can be approved in 5–10 business days, depending on how quickly feasibility and valuation reports are provided.
🔹 Location-Specific FAQs
Do you finance property developments in Geelong and regional Victoria?
Yes – we’re based in Geelong and actively support developers across Melbourne, Ballarat, the Surf Coast, Bellarine Peninsula, and greater regional Victoria.
Do lenders favour projects in metropolitan areas?
Lender appetite is generally stronger in metro and growth corridor suburbs, but we have access to lenders who support regionally zoned and emerging markets with the right data and strategy.
Ready to Build?
Whether you're planning a boutique townhouse project or a commercial build, Black Book Finance can help structure the right funding, connect you with trusted lenders, and support your project from acquisition through to final settlement.