Who this is for
- Owners of a larger block considering a small project of two to ten dwellings
- Investors looking at a duplex, townhouses or a small multi-dwelling site
- First-time developers who want to understand how finance is assessed before committing to a site
- Landowners and family groups who plan to build, hold or sell
The real challenge: a small property development loan is not a home loan
A residential development finance request is judged on more than your salary or business income. Lenders on a panel may look at the site, the approvals, the budget, the expected end value, your experience and how the loan will be repaid, whether by sale, refinance or a mix of both.
Because many of these facilities are business- or investment-purpose loans, they may be assessed and regulated differently from consumer home loans. Eligibility, structure, costs and any equity or presale expectations vary by lender and by project, and not every project will qualify.
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.
LVR, LTC and presales: the terms you will hear
Three terms come up early in development finance conversations. LVR compares the loan with the value of the property. LTC compares it with the total cost of the project. Presales are contracts signed with buyers before construction is complete. Whether a lender uses LVR, LTC or both, and whether presales are asked for, varies by lender and by project.
Read our guides on development finance with no presales and second mortgage development finance for how those questions are approached, and remember that suitability is assessed case by case.
What lenders commonly ask to see for residential development finance
A well-prepared package tends to shorten back-and-forth. Items that commonly come up include:
- Approved plans and council or certifier approvals
- A line-by-line construction budget and a fixed-price or detailed builder contract
- Your equity or land contribution and evidence of funds
- An independent valuation or feasibility of the expected end value
- Your development experience or the experience of your project team
- A clear exit plan for repaying the loan
Our small development feasibility guide walks through the numbers to test before you approach any lender. Run early figures through our Sydney home loan calculators too.
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.
Choose the project type you are weighing up
- Duplex construction loan Sydney – build and keep, build one and sell one, or build both and sell
- Townhouse development finance – three to four dwelling projects and NSW low and mid-rise reforms
- Subdivision loan Sydney – splitting a lot and preparing sites
- First-time developer finance – what is commonly asked of newer developers
- Development finance with no presales – how presale expectations are discussed
- Residual stock loans – finishing sales on completed projects
- Spec home construction loan – building to sell
- Land bank loans – holding land ahead of development
- Family joint venture finance – projects with family or partners
- Second mortgage development finance – using existing equity alongside other funding
- Small development feasibility guide – numbers to test first
How Mortgagefy helps
Mortgagefy is a broker, not a lender. We help you understand how a project is likely to be assessed, prepare the package and, where a lender on our panel or our aggregator's panel assesses it as suitable, arrange the application. We cannot promise any outcome, and some projects will not qualify.
If you plan to build a home to live in rather than a project to sell, start with our construction home loans hub. Investors can also read about investment construction loans, SMSF lending and bridging finance to see how those differ from a development facility.
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.
Before committing, read how NSW low and mid-rise housing reforms interact with finance and speak to your solicitor, accountant and council.
How it works: 4 simple steps
Describe the project
Site, planned dwellings, budget, timeline and your experience. Feasibility comes before finance.
Confirm the structure
We explain how similar scenarios are commonly structured and what lenders on our panel may want to see.
Prepare the package
Approvals, plans, cost estimates, valuations and your exit plan are organised in the format lenders expect.
Assessment and drawdown
If a lender assesses the project, funds are typically released in stages against progress. Terms vary by lender.
Tell us about your project in 2 minutes
Free, no obligation. Suitability is assessed case by case.
Frequently asked questions
What is development finance Sydney developers use for small projects?
How is a small property development loan different from a home loan?
Does Mortgagefy fund development projects?
What do lenders look at for residential development finance?
What are LVR and LTC in development lending?
Do I need presales for a development loan?
Can a first-time developer get development finance?
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. Many development and construction scenarios are business- or investment-purpose lending, which may be assessed and regulated differently from consumer home loans. Some scenarios are arranged through Mortgagefy's lender panel and aggregator; Mortgagefy does not fund projects itself.
Development lending is higher-risk. Costs can rise, sales can take longer than planned and values can move, so get independent legal and accounting advice before you commit. We do not give tax, legal 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.
Ask us how your development project would be treated
Tell us about the site, the plans and your exit plan. We will explain how the scenario is likely to be assessed and which options may be worth exploring.
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.