Who this is for
- Small developers with a few completed dwellings still unsold when the construction loan term is ending
- Builders who took the project to completion and now hold townhouses, duplex lots or units awaiting sale
- Investors who prefer to consider a refinance over a rushed discount sale
- Owners of completed projects who want to understand what a development exit loan may involve
Why a residual stock loan Sydney developers consider is not a home loan
Once a project is finished, the original construction facility usually needs to be repaid or replaced. If sales have not covered the balance, the remaining completed dwellings become the security for whatever comes next. That is the space a residual stock loan is designed for.
These are generally business or investment-purpose loans, which may be assessed and regulated differently from consumer home loans. 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.
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.
Unsold stock refinance: what a lender may look at
An unsold stock refinance is assessed on the completed property and on you. Lenders commonly want to understand the following, and their policies differ:
- The state of the stock: completion documents, occupation certificate and the dwellings' saleability
- Independent valuations and how many dwellings remain unsold
- Your sales campaign so far, including agent feedback and pricing history
- How the loan would be repaid, whether from sales, from rental income or from a refinance into longer-term finance
- Your experience, other assets and financial position as a borrower
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.
Development exit loan: exit strategy comes first
A development exit loan depends heavily on its exit. Before applying, be clear on whether you plan to sell the dwellings, hold some as rentals, or do a mix. Each path affects how a lender views the loan term, the repayment source and the risk. Interest and fees continue while stock is unsold, so holding costs matter to the numbers.
Run your own holding-cost scenarios with our Sydney home loan calculators and compare them with a realistic sale timeline, not an optimistic case.
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.
Costs and risks to weigh up
Residual stock finance can cost more than the facility it replaces, and it may carry extra fees. Discounting to sell may still be the better path in some projects. Points to weigh include:
- Interest, establishment and valuation costs, which vary by lender and project
- Whether a lender will release individual dwellings as they sell, and on what terms
- The chance that the market softens while you hold the stock
- Tax and legal consequences of selling versus holding, which your accountant and solicitor should advise on
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.
Where residual stock sits in the wider development picture
Residual stock is the tail end of a project. If you are planning ahead, our small development finance hub covers the stages before it, and development finance without presales explains a common cause of unsold stock. For single-dwelling projects see spec home construction loans.
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
Share the project
Tell us about the completed dwellings, current loan, sales progress and your intended exit.
Review the position
We discuss whether refinance, holding or selling suits your numbers, and what a lender may ask for.
Panel and aggregator options
Where the scenario fits, we explore options through our lender panel and aggregator. Eligibility varies.
Documents and assessment
We help assemble valuations, sales evidence and financials for the lender's assessment.
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.
Get your personalised answer in 2 minutes
Free, no obligation. We'll explain how your project may be assessed.
Frequently asked questions
What is a residual stock loan Sydney developers use?
How does an unsold stock refinance work?
What is a development exit loan?
Is a residual stock loan a home loan?
Can I keep some dwellings and sell others?
Should I get other advice first?
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.
Development lending is higher-risk. Get independent legal and accounting advice before you commit to a purchase, contract or loan. Mortgagefy does not fund projects itself and does not give tax, legal or planning advice.
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 unsold stock would be treated
Tell us about your completed project and exit plan. We will explain what lenders may look at and which options may suit.
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.