Best Commercial Construction Loans & Financing Australia

If you are looking for property development loans, then you might already have a piece of land, or you are looking to acquire a piece of land. You can be an experienced developer or a first timer in this field. Planning the feasibility of a project ahead with a futuristic view of the market is the key to success. Development and construction loans are made to businesses that need to construct a commercial property, sub-division or residence. Since no income is generated until after the property is finished and capable of occupancy, many banks and traditional lenders deny applicants for their loan.
Project Monitoring and Progress Payments– Being a development facility, and similar to a construction home loan the facility is structured to be progressively drawn down. The lender will make monthly progress payments to the builder, construction funding this process involves the Quantity Surveyor signing off the works completed before the lender released payment. Even before you have your DA approved, you can contact our team to discuss what the lender funding table will look like.

Whilst interest rates are higher and LVR’s lower, the assessment and qualification criteria are more suitable for development purposes. Many lenders will consider any application for residential development loans where three or more units are proposed as more suited to a commercial loan. This will attract higher interest rates and fees , and see the deal assessed very differently, more as a business case. There are a handful of lenders who consider up to four units as a residential development loan, but this is dwindling. This can be an important consideration for project feasibility and cash flow . Many developers fail to get projects off the ground or delude themselves about a projects viability because they make erroneous assumptions about how easy it will be to fund a project and the conditions of their finance.
From site acquisition to construction ready and through to residual stock. Property development finance refers to a short-term loan type which provides funding for the development of property. Asset Finance allows you to access additional funding against your plant, machinery, equipment or property,  to maximise working capital available to your business. Benefits include the ability to access additional finance for growth or merger/acquisition scenarios, and flexible repayment options.

Residentially zoned land is the most highly regarded as it is the easiest to sell. Rural properties would be seen as less secure and hence the banks will lend a lower proportion to these. When assessing your development, project lenders look carefully and critically at the quality of the security you are offering; that is the end product of the development.
Secure a business loan for Inventory, Cash Flow Management or a variety of other reasons with Commercial Experts. In other words, it is a legal right to the assets and future earnings of the business should something go wrong. The bank’s right is registered on what is known as the Personal Property Securities Register – see ppsr.com.au/about/pps-register. If your property is very specialised the bank may impose a lower LVR.
This is because presales are time consuming, expensive, sometimes complex, and reduce profitability as a developer will often have to discount the product to achieve an 'off the plan sale'. By allowing construction to get underway with nil or little presales, borrowers can immensely reduce holding costs, and more often than not, achieve better end sale prices. There is no fixed or set interest rate for property development loan, but it will depend a lot on your project and the lenders you choose to go with. It requires the knowledge of a specialist who understands not only the financial industry, but the commercial development and construction industries as well. At Australian Lending Centre, we can help secure the finance loan you need for your commercial and government-sponsored developments. Since we take our time to research the industry, we can create a tailor-made loan that benefits your development and your project’s bottom line.

Operating across Australia in cities including Melbourne, Adelaide, Sydney and beyond, Lightspeed is the leading provider of development and construction finance. Investors and developers can face a bewildering array of options when seeking to reduce financial risk or lower equity requirements. There are no rules set to demonstrate what equity should cost or how it should be structured. Mezzanine structures may also  be used to assist investors to acquire existing properties for either investment purposes or where “value-add” opportunities are available.
Certainty for developers is really key at the moment with what’s happening in the funding market. We are the leading experts in property development and construction finance, providing you with a complete end-to-end solution. Development finance is also a short-term loan type but only can be used to finance property and renovation projects. Bridging loans offer a short-term finance assistant with flexibility which helps applicants to fill a gap in a person’s finances situation before getting a long-term loan. Property development loans in Australia are more suited for large-scale projects and are less suited for smaller-scaled projects. If you are purchasing an asset for business or for private use, we can connect you to a variety of lenders and options to tailor your finance needs to meet your goals, financial circumstances, and objectives.

You can apply for property development finance through a number of schemes or private routes. In some cases, you’re likely to require professional help from a Mortgage Adviser, for example. Instead of annual interest rates, these usually come with monthly pricing. They are typically used in a property chain, where you want to buy a new property but have not yet sold your current house. A bridging loan credits you for that short period until your property is then sold, and you have the funds to pay back the amount.
The mezzanine debt sector is possibly the fastest growing, most dynamic market in the finance industry today. With the range of mezzanine debt available as diverse as the rates and fees charged, the very latest information is essential in securing the best deal. Take-out/recapitalisation of development residual stock to clear construction loans, release equity or provide an extended selling period. Firstly, there’s the ‘LDCR’ which takes into account the land costs and build costs.

Once the project has been completed, most major lenders are happy to refinance an established development. Hard costs cover the cost of the labour and the construction material used in property development. The other expenses, such as DA approval , legal fees, land clearing and design fees, are unlikely to be covered by a property development loan. Once the building stage is completed, a construction loan reverts to a typical mortgage with monthly principal and interest repayments. On the other hand, a property development loan is advanced for a short term of up to three years.
Financial institutions— banks, credit unions and building societies. Equity finance – investing your own money, or funds from other stakeholders, in exchange for partial ownership. Susan brings to the team over 30 years of experience within the finance industry, across multiple roles with a strong focus on credit assessment and problem solving skills.
Transacting residential and commercial established and off-plan property. ADS VerifiedPRO package, ensures your business stands out from competitors, builds credibility and trust, industry credited verification. We also rely on feedback from users in order to determine whether a lender or broker should be removed from the platform based on their conduct.