Commercial Development Loans from $500k to $100m+
We help you achieve your goals by brokering commercial development loans that feature progressive drawdowns, rates between 6.00% – 15.00%, and seamless conversion to exit.
Commercial Development Loans - Quick Overview (last checked 9 September 2025)
Finance Rates
- Interest Rates: From 6.00% + line fee
- Line Fee: 1-2% on undrawn funds
- LVR (on GDV): Up to 70% of end value
- Facility Term: 6-24 months typical
Funding Structure
- Land Purchase: Up to 65% of land cost
- Construction Costs: Up to 100% of build costs
- Interest Structure: Capitalised or rolled-up
- Exit Strategy: Sale or refinance required
Project Requirements
- Pre-sales: 0-50% depending on lender
- Profit Margin: Minimum 20% on costs
- Project Size: $500K to $100M+ projects
- Developer Experience: Novice to experienced
Get the Right Commercial Development Loan
Commercial development loans from our diverse panel of Australian lenders goes beyond traditional construction loans. They are structured to fund your entire project from land acquisition through to completion, with funding released progressively while managing both interest costs and line fees to maximise your development profit.
Having helped arrange development finance for everything from boutique townhouse projects to large-scale mixed-use developments, we’ve learned that success comes down to three things:
- Accurate feasibility analysis and profit margins
- Selecting the optimal lender & finance structure
- Negotiating terms that protect your equity from day one.
Book a free 30 min chat with our team to discuss your development opportunity.
We help you access development-specific facilities from our panel of 60+ lenders, structuring deals that optimise your return on investment:
- Major banks – Competitive rates for experienced developers with strong pre-sales
- Second-tier banks – More flexible on pre-sales and profit margins
- Non-bank lenders – Higher GDV lending for ambitious projects
- Private funders – Minimal pre-sales required with faster approvals
Our specialist development finance status means access to wholesale rates, reduced line fees, and staged drawdown structures you won’t get going direct. We match your development with the right funding partner, whether it’s a $500K subdivision or $100M mixed-use precinct.
Talk directly to a specialist
Ready to get started, or want to learn more?
Get direct access to Nadine Connell - your dedicated commercial finance specialist with over 15+ years experience and 3,300+ happy clients.
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We Help Finance All Development Types
Expert Specialist brokering for all commercial development loans.
Residential Subdivisions
$500K - $100M+
- Land subdivision 2-100+ lots
- Greenfield estate development
- Infill subdivision projects
- DA approved, 20% profit margin
Townhouse Developments
$500k - $100m+
- 2-20 townhouse projects
- Terraced housing developments
- Villa unit complexes
- 0-30% pre-sales required
Apartment Complexes
$1M - $200M+
- Low-rise apartment buildings
- High-rise residential towers
- Boutique apartment projects
- 30-50% pre-sales typical
Mixed-Use Developments
$1M - $100M+
- Retail with residential above
- Commercial & apartment complexes
- Live-work-play precincts
- Strong anchor tenants needed
Commercial Developments
$1M - $100M+
- Strata office developments
- Industrial unit complexes
- Warehouse subdivisions
- 50% pre-commitment typical
Specialty Developments
$1M - $100M+
- Student accommodation projects
- Retirement village developments
- Build-to-rent projects
- Tailored funding structures
Development Finance Rates, Terms & Fees
Development Type |
Interest Rate |
Max GDV |
Terms |
Key Requirements |
|---|---|---|---|---|
Land Subdivision |
4.89-7.5% |
65% |
6-12m |
DA approved • 20% profit margin • No pre-sales |
Townhouse Development |
5.5-8.5% |
70% |
12-18m |
0-30% pre-sales • Builder fixed price • Exit strategy |
Apartment Complex |
6.0-9.0% |
65% |
18-24m |
30-50% pre-sales • QS reports • Tier 1 builder |
Mixed-Use Development |
6.5-9.5% |
60% |
18-24m |
Anchor tenants • Complex structure • Strong pre-sales |
Commercial Strata |
7.0-10.0% |
60% |
12-18m |
50% pre-commitment • Industrial/office • Clear exit |
Mezzanine/2nd Tier |
12-15% |
80% |
6-12m |
Top-up finance • Fast approval • Higher risk projects |
Fee Type |
Typical Amount |
Details |
|---|---|---|
Arrangement Fee |
1-2% of facility |
Upfront, often added to loan |
Line Fee |
1-2% p.a. |
Charged on undrawn funds |
Feasibility Assessment |
$3,000-$10,000 |
GDV valuation & project review |
Quantity Surveyor |
$5,000-$15,000 |
Progress claim verification |
Project Monitoring |
$500-$1,500/month |
Site inspections & reporting |
Legal Documentation |
$5,000-$15,000 |
Complex security structures |
Drawdown Fee |
$300-$750 |
Per progress claim |
Variation Fee |
$1,000-$3,000 |
Scope or budget changes |
Exit/Discharge Fee |
0-1% of facility |
Some lenders only |
Lender Type |
Rate Range |
Best For |
|---|---|---|
🏦 Major Banks |
4.89-7.5% |
Experienced developers, strong pre-sales, tier 1 builders |
🏢 Second Tier Banks |
6.0-8.5% |
Mid-sized projects, flexible pre-sales, regional developments |
💼 Non-Bank Lenders |
7.5-11% |
Higher GDV, minimal pre-sales, faster approvals |
🔐 Private Funders |
10-15% |
No pre-sales, complex projects, speed critical, mezzanine |
Pre-sales Impact: Each 10% of pre-sales can reduce rates by 0.25-0.5%
Experience Premium: First-time developers typically pay 1-2% more than experienced
Profit Margins: Minimum 20% profit required, higher margins get better terms
True Cost: Factor in both interest AND line fees for actual financing cost
All rates and terms are indicative only. Contact us for a personalise quote. Last updated <<SHORTCODE>>.
The Five Development Finance Stages
Talk directly to a specialist
Ready to get started, or want to learn more?
Get direct access to Nadine Connell - your dedicated commercial finance specialist with over 15+ years experience and 3,300+ happy clients.
Choose how you'd like to connect:
Commercial Development Loan Calculator
Calculate development costs, profit margins, and progressive funding for your property development project
Development Costs
Purchase price of development site
All build costs including civil works
DA, consultants, marketing, legals
Total sales value on completion
Buffer for cost overruns (5-10% typical)
Finance Terms
Development finance rate p.a.
Fee on undrawn funds p.a.
Total project duration
Lender's maximum GDV ratio
Agent fees and marketing
Funding Requirements
Land + construction + soft costs
Your cash contribution (30% minimum typical)
Value of contracted sales
Affects interest rate pricing
Exit Strategy
Time to sell remaining stock
How interest is handled
Upfront facility establishment
Progressive Funding Schedule
Progressive Funding Timeline
How Development Finance Works
Commercial development loans provide funding for property development projects, releasing funds progressively as construction milestones are achieved. Interest is typically capitalised during construction.
Most lenders fund up to 65-70% of the Gross Development Value (GDV) and require 20-30% profit margins. Pre-sales requirements vary from 0% to 50% depending on the lender and project.
Current Market Rates (2025)
- Base rates: From 6.00% - 15.00% p.a.
- Line fees: 1-2% p.a. on undrawn
- Typical all-in cost: 7-12% p.a.
- Maximum GDV: 60-75%
- Minimum profit margin: 20%
- Minimum equity: 25-30%
Key Considerations
- GST margin scheme implications
- Factor in holding costs during sales
- Include all professional fees
- 5-10% contingency essential
- Pre-sales reduce rates by 0.25-0.5% per 10%
- Plan exit strategy carefully
- This calculator is for illustration purposes only. Results may be inaccurate. Call our team for an offical quote. Not financial advice.
Documentation Needed To Apply
If you’d like to apply for commercial development loans in Australia, you’ll need to provide a comprehensive set of documents that demonstrate the viability of your project and your financial position.
This typically includes:
- Proof of land ownership
- Detailed development plans
- Council approvals
- Feasibility study
- Fixed-price building contract
- Cost estimates and QS reports
- Pre-sales evidence (if relevant)
- Valuation report
- Borrower's financial statement
- Asset and liability statement
- Summary of development experience, if any
- Exit strategy
In some cases a lender may also want to see additional documents such as builder’s insurance, project delivery schedules, or details on your marketing strategies. This is dependent on the complexity and risk profile of the project. The best way to speed up the application process is to supply complete documentation from the outset, something our team can assist with.
Ready to get started? Our 3-Step Loan Process.
Get our team to find you the right commercial property purchase loan - no up front fees.
Review Your Goals
30-Minute Consultation
We analyse your commercial property goals, financial position, and unique requirements. We'll give you expert advice & feedback on your options and likely outcomes.
- ✓ Assess your borrowing capacity
- ✓ Identify best-fit lenders
- ✓ Map optimal deal structure
Manage Your Application
We Handle Everything
We prepare & manage the entire application process, leveraging our lender relationships to secure optimal terms. We do the hard work for you, so you save time, money & hassles.
- ✓ Document preparation & packaging
- ✓ Multi-lender negotiations
- ✓ Proactive query management
Complete Loan Settlement
Complete Support
We coordinate your loan through to settlement, and remain your trusted finance advisor for future finance needs. Our relationship doesn't end at approval, We will regularly check-in.
- ✓ Settlement coordination
- ✓ Ongoing rate reviews
- ✓ Future property finance
Our Australian Lending Network
Accredited MFAA members with direct access to 60+ Australian lenders
Lending Coverage by Project Size
Benefits of working with us
Strong Application
We'll work with you to develop a strong application profile, improving your chances of a successful application. We'll also call out any issues or gaps early. Your business plan and cash flow projections are also include
Best Possible Terms
We compare multiple lenders and present suitable options from our extensive development finance lender panel. We consider loan features like rates & terms, payment flexibility and approval timeframes.
Avoid Mistakes
We help you avoid the common mistakes people make every day. From getting stuck with high rates to having loan applications rejected because the information wasn't structured the right way for the lender.
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Frequently asked questions
What is a property development finance loan in Australia?
A property development finance loan is a specialised lending solution designed to fund the purchase of land, construction, and completion of residential or commercial property projects in Australia. Unlike our standard commercial property loans, these loans are structured for staged drawdowns, matching the progress of your construction project and usually repaid after the project is completed. Our clients often repay the loan through the sale of the developed property.
How does development finance differ from a standard construction loan?
Our development finance solutions are tailored to multi-unit residential, commercial, or mixed-use development projects, and differ from standard construction loans due to the larger amounts involved, as well as more complex eligibility criteria than standard construction loans, which usually apply to single dwellings.
There are many factors involved in obtaining development finance, including the end value of the project, scope of the project, and the developer’s track record.
Who can apply for property development loans in Australia?
Experienced and first-time property developers are welcome to apply for project finance. This can include builders and investors. Our lenders will assess applications based on eligibility factors such as project feasibility, financial backing, LVR, prior development experience, and the value and location of the proposed development. Our team can organise a quick feasibility assessment, or you can use our development finance calculator.
Why use a commercial property loan broker instead of going direct to banks?
There are many reasons to work with an experienced Commercial Property Loan Broker instead of going to a lender directly. The top advantages are:
- You get immediate access to 60+ lenders, some of whom are only accessible via an accredited broker vs single bank option
- You can often get access to better rates & terms through our lender relationships
- Your credit score will not be affected by negotiating with several lenders at the same time
- You can achieve higher approval rates via expert application structuring
- You will save a ton of time as we handle the entire process
- There is no upfront fee, and typically no cost to you as our time is compensated directly by the lender
What are the biggest risks in securing and managing development finance?
The biggest development finance risks are unexpected project cost overruns or delays. Changing market conditions can also be a risk if property values decline or pre-sales are insufficient to meet project costs. This is why most lenders require feasibility studies, staged drawdowns and regular progress inspections.
Getting the right insurance and secondary finance options in place should also be part of your planning process.