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Small-Mid Tier Developers & Builders

Development & Construction Finance
Sydney - $500k to $20m projects

Name: Mortgagefy
Address: Sydney, NSW, AU
Telephone: +61432634648
Price range: Free

By the Mortgagefy Team · Credit Rep 532656 of ACL 348324 · Published 2026-10-15 · Last reviewed 2026-10-15

Site acquisition, construction, mezzanine and residual stock refinance. We work with small-to-mid tier Sydney developers (2-30 dwellings) and the private credit funds that back them.

Start Your Free Assessment 0432 634 648

Free Business & Commercial Assessment

Takes under 3 minutes. We'll match you with the right lender for your situation.

Who this is for

Sydney developers and builders working on 2-30 dwelling residential projects or small commercial/mixed-use developments.

First-time developer with a strong site and 20-30% equity
Experienced developer rolling off a completed project into the next site
Builder-developer self-funding a small project (2-6 units)
Developer needing residual stock finance to carry unsold units post-PC
Mezzanine or preferred equity on top of a senior bank facility
Smaller mixed-use (shop top + residential above) requiring construction finance

The real challenge

Big-four construction finance has tightened dramatically for small developers over the past 3 years: pre-sales thresholds of 100% debt cover, net profit ratios of 20%+, and only experienced developers with 5+ completed projects need apply. First-time developers and smaller projects (under 10 dwellings) are routinely declined.

Private credit, non-bank construction lenders and senior-debt-plus-mezzanine structures fill the gap. Pricing is higher but LVRs are often 65-75% of TDC (total development cost) rather than the big-four's 55-60%, pre-sale requirements are more flexible, and approvals come back in 2-4 weeks rather than 8-12.

How Mortgagefy helps

Private credit panel. We work with the mid-tier non-bank development funders and specialist private credit funds that back small-to-mid tier Sydney developers.
Full stack structuring. Senior debt + mezzanine + preferred equity + director's equity - we help you build the capital stack that makes the project viable.
Pre-sale guidance. We'll tell you the realistic pre-sale percentage each lender wants before you commit to the project - some private credit funders accept 0-30% pre-sales where the big banks demand 100%.
Residual stock exits planned early. If units don't sell before PC, we have the residual stock refinance options lined up so your construction facility doesn't default on expiry.

Need to model repayments first? Try our commercial property loan calculator for an indicative figure, or compare renting with buying in the rent-vs-buy calculator.

How it works

Feasibility review

60-minute meeting - site, DA status, QS costs, GRV estimate, your experience, equity contribution, pre-sales assumption.

Capital stack design

Senior / mezz / equity split optimised to the lender's appetite and your return targets.

Submission

Full dev finance file: feasibility, QS report, DA, builder details, pre-sale evidence, developer CV.

Settlement to PC

Senior lender draws per QS reports; we monitor variations and the exit timeline.

Get a personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Frequently asked questions

What LVR / TDC can I expect?

Big-four construction: 55-65% of TDC, 100% debt cover from pre-sales. Mid-tier non-bank: 65-70% TDC. Private credit: 65-75% TDC, with mezzanine allowing stretch to 85% TDC. First-time developers typically cap 5% below experienced.

How much pre-sale do I need?

Varies dramatically. Big-four demand 100% debt cover (often 60%+ of units pre-sold). Mid-tier non-bank: 40-70% debt cover. Private credit: often 0-30% pre-sale required - they underwrite the project on GRV and sponsor strength.

What's the minimum project size?

Several non-bank funders start at 2-unit townhouse projects. Private credit mostly starts at $500k-$1m facility size (so smallest project around 2-4 dwellings).

What's residual stock finance?

After PC, if units don't sell within the construction facility term, residual stock finance refinances the construction loan into a term facility (12-24 months typical) that lets you carry the stock while selling it. Pricing is higher than construction but lower than extending the construction facility past expiry.

What's mezzanine finance?

Mezzanine sits behind the senior debt in the capital stack - higher pricing (typically 15-25% p.a.) but allows the project to proceed with less developer equity. Common in structures where senior lends 65% TDC and mezz adds 15-20%, with the developer covering the balance plus GST timing.

How much developer experience do lenders require?

Big-four: typically 3-5 completed projects of comparable size. Mid-tier non-bank: 1-2 completed projects. Private credit: often willing to back a strong first-time developer with the right site, QS report, builder, and equity contribution.

What's a typical construction facility term?

Residential: 12-18 months construction + 6-12 months to sell. Commercial/mixed-use: 18-24 months construction + 6-12 months lease-up or sell. We build in buffer for the common risks (weather, trade disputes, variations).

Get your free development finance assessment

Senior debt + mezzanine + residual stock. 2-30 dwelling projects. First-time developers welcome with the right site and equity.

Start Your Free Assessment Call 0432 634 648

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The owner-occupier version of a dev finance shortfall.

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Low Doc Commercial Property Loan

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Equipment Finance

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Information checked October 2026. This information is general in nature and does not take account of your personal objectives, financial situation or needs. Business, commercial and development finance eligibility, pricing and documentation varies by lender and changes frequently. Confirm current requirements with your chosen lender and seek professional advice before applying. Mortgagefy — Credit Representative 532656 of ACL 348324.

Development & Construction FinanceSydney - $500k to $20m projects