Property Development Finance

Expert-Led Property Development Loans for Builders & Investors

Key Partners Finance, we specialize in property development funding that helps investors, builders, and developers secure the capital they need. Getting the right loan structure that works for your project, your timeline, and your profitability goals. Want to know your best funding options? Talk to a property development finance brokers today!

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Funding You Need to Build, Scale & Profit – Key Partner Finance

Property development is a high-stakes game. You need serious capital, the right financial structure, and a team that knows how to get deals funded—fast. That’s where we come in.No delays. No roadblocks. Just strategic funding that fuels your success. Need Funding? Let’s Talk. Get expert guidance on your next development project.

At Key Partner Finance, we specialize in property development funding that helps investors, builders, and developers secure the capital they need to break ground, build smarter, and maximize ROI. Whether you’re a first-time developer or managing large-scale residential or commercial projects, we connect you with the best property development finance solutions in Australia.
No delays. No roadblocks. Just strategic funding that fuels your success. Need Funding? Let’s Talk. Get expert guidance on your next development project.

What is Property Development Funding?

How Much Can I Borrow for?

What Are the Interest Rates

What is Property Development Funding?

How Much Can I Borrow for?

What Are the Interest Rates

Types of Property Development Finance

Here’s a breakdown of the main types of development loans and when to use them:

Residential Property Development Finance

For developers building houses, townhouses, or apartment complexes. If it’s residential and needs funding, this is the go-to loan.

Covers land acquisition, construction costs, and soft costs (planning, permits, etc.)
Loan amounts typically based on Loan-to-Cost (LTC) & Gross Realization Value (GRV)
Works for small-scale developments to multi-unit projects

If you’re scaling up, structuring the right funding stack can save you serious cash.

Commercial & Semi-Commercial Development Finance

For developers working on offices, retail spaces, industrial buildings, or mixed-use properties.

Covers ground-up construction, refurbishments, or conversions
Loan terms & rates vary based on tenant demand & projected rental yield
Works for both long-term hold and build-to-sell strategies

Lenders focus on commercial viability—strong pre-leases or anchor tenants can improve your loan terms.

Renovation, Conversion & Refurbishment Loans

For developers looking to upgrade, repurpose, or modernize existing properties.

Works for residential, commercial, and mixed-use properties
Funding based on the post-renovation value (not just the purchase price)
Ideal for flipping, increasing rental yield, or repositioning properties for higher ROI

Using a bridging loan alongside refurbishment finance can help speed up the process.

New Build Development Loans

For developers constructing brand-new properties from the ground up.

Funds land acquisition + construction + finishing costs
Released in stages based on development progress (drawdowns)
Covers single-unit builds to large-scale multi-unit developments

If you need more leverage, pairing this with mezzanine finance can help reduce your upfront cash requirement.

Single-Unit to Large Multi-Unit Development Loans

From small, single-dwelling projects to high-density apartment blocks, this financing scales with your project size.

Loan terms, rates, and structure depend on project scope & exit strategy
Higher unit counts = higher risk, but also higher potential profit
Lenders look at market demand, pre-sales, and developer experience

Scaling up? Make sure your funding stack is built for growth.

Development Exit Funding (Sales Period Finance)

Need short-term finance after construction while waiting for units to sell or refinance? This is your play.

Works like a bridging loan to free up capital
Helps developers avoid high-interest development loans post-completion
Provides breathing room for marketing & selling at the best price

Cash flow is king—this funding keeps your next project moving while waiting on sales.

Regulated Development Finance

Most property development finance is unregulated, but if you plan to live in 40%+ of the development, it becomes regulated.

Common for owner-builders or part-owner-occupied projects
Comes with stricter lending criteria & regulatory oversight
Typically has lower leverage compared to unregulated loans

If your development includes a personal residence, expect more lender scrutiny.

Mezzanine Development Finance (Junior Loan)

Need extra funding without putting up more cash? Mezzanine finance fills the gap.

Secondary loan on top of senior development finance
Reduces the developer’s equity contribution
Higher interest rates but increases overall leverage

Stacking mezzanine finance with senior debt lets you stretch your capital across multiple projects.

Which Development Loan Is Right for You?

The right funding strategy depends on your project size, risk tolerance, and exit plan.

Need maximum leverage?

Pair senior debt with mezzanine finance

Want to boost cash flow post-construction?

Use development exit funding

Scaling from small projects to multi-unit developments?

Structure a multi-phase funding approach

At Key Partner Finance, we don’t just secure loans—we engineer funding strategies that help developers build, scale, and profit. Let’s structure your next deal right. Get in touch today.

Get Your Property Development Loan Approved Today

The right financing can make or break your project. At Key Partner Finance, we get you the capital you need—without the headaches.

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-FAQ

Frequently Asked Question

What Fees & Costs Are Involved in Property Development Finance?

Property development financing comes with a range of fees, depending on the lender, loan type, and specific deal structure. Here’s what you need to factor into your budget

Lender Arrangement Fee – Charged by the lender for providing the finance.
Broker Arrangement Fee – Covers the intermediary service between you and the lender, plus any other professionals involved in securing the deal.
Monitoring Surveyor Fees (Quantity Surveyor Fees or QS) – Ensures professional oversight of the development, keeping it compliant with building regulations and loan conditions.
Exit Fees – Applied when the loan is fully repaid.
Legal Fees – Covers the cost of legal documentation and professional services.
Non-Utilisation Fees – Some lenders charge this fee for funds that are approved but not drawn, compensating them for keeping capital available.
Management/Admin Fees – Ongoing costs for managing and maintaining the loan facility.

Understanding these fees upfront helps you structure your funding efficiently and avoid unexpected costs.

Key Paperwork You’ll Need for Development Finance

Lenders don’t just approve loans—they assess risk and feasibility. To secure funding, you’ll need

Planning Permission Details & Drawings – Proof that the project is approved.
Planning Restrictions & Levies – Any potential costs or limitations that could affect profitability.
Detailed Breakdown of Project Costs – A clear picture of expected expenses.
Borrower’s Development Experience – Previous projects, if applicable.
Schedule of Works – A phase-by-phase timeline of construction and milestones.
Details of Key Professionals – Architects, contractors, and any other key players involved.
Financial Overview – Your current assets, liabilities, and projected costs during the project.
Exit Strategy – How you plan to repay the loan (sales, refinancing, etc.).
Projected Gross Development Value (GDV) – The estimated end value of the completed project.

First-time developer? No problem. Many lenders offer financing options for new developers. Want to explore your options? Request a callback from one of our Commercial Finance Managers today!

Do First Home Buyers Pay Stamp Duty?

First home buyers may be eligible for stamp duty concessions or exemptions, depending on the state and property price.

Fast approvals, no wasted time
Tailored funding that fits your project
Up to 90% financing for total development costs
Smart, creative funding solutions
Flexible repayment structures
Competitive interest rates that work for you
Lower pre-sale requirements for construction loans
Early equity release for better cash flow
A dedicated finance expert in your corner
Industry connections to boost your project’s success
Transparent, no-nonsense lending approach

What is Development Finance?

Development finance is the capital that fuels property development projects—from land acquisition to construction and final sale. It’s not your standard mortgage. It’s a high-leverage, structured loan designed to fund multi-unit residential, commercial, and mixed-use projects. Unlike regular loans, property development finance is typically released in stages (drawdowns) as construction progresses, ensuring funds are used efficiently. Lenders assess:

Project feasibility – Can it generate strong returns?
Your experience – Have you done this before?
Loan-to-cost ratio (LTC) & gross realisation value (GRV) – How much risk is involved?

If you’ve got a solid project and a strong strategy, we’ll help you get funded.

What Are the Interest Rates for Development Finance?

Short answer: It depends on your project, lender, and risk profile. Interest rates for property development loans vary based on:

Loan type (senior debt, mezzanine, private lending, etc.)
Project size & risk level
Your track record as a developer
Lender (banks vs. private lenders vs. JV partners)

Typical interest rate ranges in Australia:

Bank Loans: 6% – 9% p.a. (for low-risk, large-scale projects)
Private & Non-Bank Lenders: 8% – 15% p.a. (for faster approvals & flexible terms)
Mezzanine Finance: 15% – 25% p.a. (higher risk, higher return)

How Much Can I Borrow for Property Development?

Your borrowing power depends on loan structure, project feasibility, and risk factors. Lenders typically offer:

65% – 80% of total development costs (LTC)
Up to 70% of gross realization value (GRV)
100% funding with mezzanine finance or JV partners

Example: If your project costs $10M, lenders may finance $7M – $8M, requiring $2M – $3M in equity or alternative funding sources. Want to know your exact borrowing capacity? Let’s run the numbers & secure your funding today.