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Development Loans in Australia
Property development finance is fundamentally different from standard home or investment lending. Lenders assess feasibility, experience, margins, and exit strategy – not just property value. Without the right structure and lender fit, even strong projects can struggle to secure funding.
At Palisade Brokers, we help developers secure development loans that align with project scope, timelines, and risk profile. Whether you’re undertaking a duplex build, townhouse project, or a small-to-mid-scale residential development, we focus on structuring finance that supports delivery and completion.
As a broker-led business, we work with lenders experienced in development finance. That means clearer expectations, realistic funding structures, and a strategic approach that supports your project from planning through to exit.
What Is a Development Loan?
A development loan is a specialised form of finance used to fund property development projects, typically involving construction, subdivision, or redevelopment.
These loans generally involve:
- Detailed feasibility assessment
- Staged funding aligned to construction progress
- Higher equity or deposit requirements
- Strong focus on exit strategy
Because development lending is risk-based, lender selection and preparation are critical.
What These Loans Are Commonly Used For
- Duplex developments
- Townhouse projects
- Small to mid-scale residential developments
- Multi-stage construction projects
- Refinance or restructure existing development finance
In certain cases, staged projects may initially require Private Loans before transitioning to development funding.
How Development Loans Work
Development loans are assessed and funded differently to standard mortgages, with greater emphasis on project fundamentals.
Common features include:
- Progressive drawdowns tied to construction stages
- Interest typically capitalised during the build
- Valuations and quantity surveyor reports
- Funding based on total development cost and end value
A strong feasibility and clearly defined exit strategy are essential to securing approval.
Who These Loans Are Best Suited For
Development loans may suit:
- Experienced developers
- Builders undertaking their own projects
- Investors moving into small-scale development
- Borrowers with clear exit strategies
- Projects with strong feasibility margins
If you’re newer to development, we’ll help assess whether the project and structure are lender-ready before proceeding.
Key Benefits of a Development Loan
- Funding aligned to project stages
- Ability to capitalise interest during construction
- Support for larger, higher-value projects
- Structured finance aligned to feasibility
- Flexibility to refinance or exit on completion
Common Challenges (And How We Solve Them)
Feasibility not meeting lender requirements → We review and strengthen the project upfront.
Insufficient experience or track record → We match projects with appropriate lenders.
Cash-flow pressure during construction → We structure staged funding and interest capitalisation.
Unclear exit strategy → We ensure exit pathways are clearly defined before application.
Our Process at Palisade Brokers
- Initial Strategy Discussion
Understand your project scope, experience, and objectives. - Feasibility & Structure Review
Assess costs, margins, and funding requirements. - Lender Selection & Application
Match your project with development-focused lenders. - Progressive Funding & Completion Support
Ongoing support through construction and exit.
Related Loan Options You May Want to Explore
Frequently Asked Questions
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Development loans fund the entire project and are assessed on feasibility, not just build cost.
Speak with a Development Finance Specialist
