Who this is for
This page is for Sydney families and small groups who are thinking about a shared development project rather than a single-owner one. It may suit you if:
- A parent or relative owns land in Western Sydney and the family wants to build more than one dwelling on it
- Two or more family members, or trusted partners, want to pool land, cash and skills into one project
- You are weighing up how a family arrangement would look to a lender before you speak to a solicitor
- You want to understand where a guarantor fits in and what that could mean for the guarantor
The real challenge with joint venture development finance
Joint venture development finance is harder to explain to a lender than a single-owner loan, because several people are contributing different things. One party might own the land, another might supply cash, and another might manage the build. A lender wants to know who owns what, who is borrowing, who is liable and how the parties get paid at the end.
Families add another layer. Trust and goodwill are real, but a lender still needs the arrangement documented, and the people signing may be putting their own home at risk. That is why the legal structure matters before the finance conversation goes far.
Building on parents' land: how lenders may look at security
If you are exploring build on parents land finance, the first question is usually who owns the title. Where the land sits in a parent's name, a lender may look at whether the parents will be on the loan, provide their property as security, or act as guarantors. Each option changes the risk for the parents, and lender policy varies.
A lender will also want to understand the project itself: approvals, the building contract, the expected end value and how the loan will be repaid, for example by sale or by refinance. Read our guide to how a development feasibility study is assessed to see what is typically put in front of a lender.
None of this replaces legal advice. Ownership structure, title, tax and stamp duty consequences are matters for your solicitor and accountant, and we do not advise on them.
Family development partnership loan: structure questions to settle first
A family development partnership loan is not a standard product with a fixed set of rules; how it is arranged depends on the parties and the lender. Before finance is discussed in detail, it helps to have answers to questions like these, ideally with your solicitor:
- Who will hold title during the project, and who will hold it afterwards?
- Who is the borrower, and who is a guarantor or security provider?
- How are contributions of land, cash and labour recorded and valued?
- What happens if the project runs late, costs more or a partner wants out?
- How will profit or the completed dwellings be shared?
Some arrangements are assessed as business or investment-purpose lending, which can be treated differently from a consumer home loan. Ask us how your project would be treated once you know the shape of the deal.
Guarantor issues families should understand
Where a parent or relative offers their home as security or signs as guarantor, they may be liable for the debt if the project does not go to plan. In many cases lenders will expect the guarantor to receive independent legal advice before signing, but requirements vary by lender.
Before anyone signs, talk openly about what would happen if a sale takes longer than expected or the end value falls short. If you want background on guarantor arrangements in general, see our guarantor construction loan page.
How Mortgagefy helps
We help you understand how a lender may view a shared project, then match the scenario to Mortgagefy's lender panel and aggregator where a suitable option exists. Some scenarios are arranged through those channels; Mortgagefy does not fund loans itself. We do not promise an outcome, and suitability is assessed case by case.
Model repayments and holding costs using our Sydney home loan calculators, and see our wider small development finance overview and construction home loans hub for related options. If the project is planned on a block you own, our investment construction loan page covers a related scenario.
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 steps
Share the structure
Tell us who owns the land, who is contributing what and what the project is, in plain terms.
Get your advisers involved
Your solicitor and accountant advise on ownership, guarantees and tax; we do not.
Match to the panel
We look at whether the scenario can be taken to a suitable lender on our panel or aggregator's panel.
Assess and decide
Lenders assess the project and the parties. You decide with your advisers whether the terms suit you.
Ask us how your project would be treated
Free, no obligation. Answer a few questions and a broker will follow up. Suitability is assessed case by case.
Frequently asked questions
What is joint venture development finance?
Can we get build on parents land finance?
Is a family development partnership loan a special product?
Do parents have to sign as guarantors?
Will Mortgagefy advise on tax or the legal structure?
Is joint venture development finance a home loan?
General information, reviewed 1 October 2026. Policies, lender participation and requirements may change.
Confirm current requirements and lender participation directly with your chosen provider before applying.
Development lending is higher-risk. Get independent legal and accounting advice before you commit to any structure, contract or loan. Mortgagefy does not give legal, tax or planning advice; speak to your solicitor, accountant and council.
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.
Talk to a Sydney broker about your family project
Ask us how your joint venture development would be treated, then take the structure to your solicitor and accountant.
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.