Who this is for
- Small developers building a handful of dwellings who do not want to presell before construction
- Owners planning to keep or sell completed dwellings after the build rather than off the plan
- Investors comparing project finance structures for a duplex or small townhouse project
- First-time developers wondering how the absence of presales may affect how lenders view a project
Development finance no presales: what presales are and why lenders ask
A presale is a signed contract to sell a dwelling before it is built. Lenders may use presales as evidence that there is demand for the finished product and that the debt can be repaid on completion. Some projects, especially larger ones, are assessed with a presale requirement. Whether a presale is needed at all, and how it is measured if it is, varies by lender and by project.
For a small project, some lenders take a different approach and look at the feasibility, the location, the builder and your own position instead. We are not able to say how any given project would be treated until we see it.
Construction finance without presales: how it may be structured
Where a lender does consider construction finance without presales, the structure may differ from a presale-backed loan. Depending on the lender, that could include more of your own money in the project, different pricing, extra security, or a shorter or more closely monitored term. The lender may also look harder at the exit: whether you plan to sell the dwellings or refinance and hold them. Costs, fees and limits vary, and we do not quote any here.
Some scenarios are arranged through a private development lender or other non-bank on our panel or our aggregator's panel; others may not fit. If you plan to keep the property, compare with our investment construction loan page, and see our non-bank construction loans overview.
The trade-offs to weigh before you skip presales
Skipping presales can leave you carrying more of the risk. Points worth discussing with your accountant and broker:
- You may need more equity or additional security to satisfy a lender
- Pricing and fees may be higher than for a presale-backed project, and vary by lender
- If the market softens, you may hold unsold stock while interest keeps running
- The exit needs a plan: sale of completed dwellings, or refinance to longer-term finance
- Cost overruns and delays fall on you, so build a contingency and stress-test the numbers
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
Right-sizing the project and knowing your exit
Smaller schemes, such as a duplex or a small townhouse project, are the type of project often discussed in this context, though nothing here means yours will be considered. If you are new to development, our page on first time developer loans explains what lenders may weigh. Use our Sydney home loan calculators to test holding costs, and always model what happens if a sale takes longer than expected.
Development lending is higher-risk. Take advice from your solicitor, accountant and council on contracts, tax and approvals before you proceed.
How Mortgagefy can help
We discuss the project, the equity you can contribute and your exit, then talk through how lenders on our panel and our aggregator's panel may treat a project without presales. Suitability is assessed case by case. Mortgagefy does not fund projects itself and cannot promise approval, timing, pricing or limits. Our construction home loans hub covers the standard build finance side.
Development lending is higher-risk: get independent advice
Development and project loans are usually business- or investment-purpose lending, which may be assessed and regulated differently from consumer home loans. Eligibility, structure, loan-to-value or loan-to-cost limits, presale requirements and costs vary by lender and by project. Some scenarios are arranged through Mortgagefy's lender panel and aggregator, and suitability is assessed case by case. Ask us how your project would be treated.
Mortgagefy does not provide tax, legal or town-planning advice. Speak to your solicitor, accountant and council before you commit to a project.
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
How it works: 4 simple steps
Describe the project
Location, number of dwellings, builder, budget, your equity and how you plan to exit.
Test the numbers
We look at holding costs, contingency and how the project holds up if sales are slower.
Discuss lender treatment
We explain how lenders may view a project without presales. Outcomes vary by lender and project.
Take independent advice
Your solicitor and accountant review the project and structure before you commit.
Get your personalised answer in 2 minutes
Free, no obligation. We'll talk through how your project may be treated.
Frequently asked questions
Is development finance no presales possible for a small project?
What is construction finance without presales?
What is a private development lender?
Will I pay more without presales?
What is my exit if I have no presales?
Does Mortgagefy give tax, legal or planning advice?
General information, reviewed 1 October 2026. Policies, government schemes and lender participation may change.
Confirm current requirements and lender participation directly with your chosen provider before applying.
This information is general in nature. Policies vary by lender and change frequently. Confirm current requirements with your chosen provider and seek professional advice.
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.
Ask how your project would be treated without presales
Tell us about the project and your exit, and we will talk through the trade-offs and the questions to put to your advisers.
Conditions apply. Lending criteria, fees, charges and eligibility apply and vary by lender and project. Not all applicants or projects will qualify. This is general information only and not credit or financial advice.