Development Finance: Sydney
Development finance is a product most brokers won’t touch. Staged drawdowns, presale requirements, feasibility assessment, cost-to-complete analysis, lender appetite that changes with project scale and location, it’s a different world to residential lending. We’ve been arranging development finance for Sydney projects for over 20 years and we’re comfortable with the complexity.
We work with developers from site acquisition through to completion, managing the finance process so you can focus on delivering the project. Backed by the YML Group’s accounting and legal teams for entity structuring, GST and margin scheme elections, and construction contract review. Call Jay on 0425 228 882.
What We Arrange
Residential Development Finance
Duplexes, townhouse developments, boutique apartment builds. Assessed on feasibility (end value vs. total cost), presale coverage, developer experience, project location and build quality. We know which lenders are active at which project scales, what presale requirements they apply, and how to structure your application to meet those criteria before we approach the market.
Commercial Development Finance
Office buildings, retail developments, industrial facilities, mixed-use commercial and residential projects. Commercial development finance is more specialised and harder to access than residential development lending. We work with non-bank lenders who are specifically active in commercial construction.
Land Acquisition Finance
Often the hardest stage to fund, particularly for vacant land without an existing approval. We arrange land acquisition finance as a standalone facility or as part of a broader development package that rolls from land purchase through to construction completion. Assessment is based on development approval status, zoning, location and the developer’s track record.
Construction Loans: Owner-Builder & Small Developer
For single dwellings, dual occupancy and small knockdown-rebuilds, standard construction loan products through bank and non-bank lenders often suffice. Progress-draw structures release funds as each construction stage is certified. See also our Construction Loans Sydney page.
How Development Finance Is Assessed
The fundamental question is feasibility, does the project stack up? Lenders verify Total Development Cost (TDC: land, construction, professional fees, finance costs, GST, sales and marketing, contingency) against Gross Realisation Value (GRV: what the completed dwellings or premises will sell for). Loans are typically sized at 65–75% of TDC. Lenders independently verify feasibility using their own quantity surveyors and development managers, your feasibility study is the starting point, not the end point.
For projects of four or more dwellings, presale coverage is usually required, unconditional contracts covering 80–100% of the loan amount before construction funds are advanced. For smaller projects, duplexes, triplexes, some lenders will proceed without presales if feasibility is strong and the developer has demonstrable equity. Interest during construction is typically capitalised, preserving cash flow for construction costs.
Where We’re Most Active in Sydney
Inner-ring suburbs (Redfern, Newtown, Marrickville, Glebe, Leichhardt), the Eastern Suburbs, Lower North Shore, Parramatta and the Western Sydney growth corridor, and the South West (Campbelltown, Liverpool, Bankstown). Each market has different lender appetite, presale dynamics and feasibility benchmarks. We advise on what applies to your specific location.
The YML Group Advantage for Developers
Development projects have accounting and legal complexity built in: the correct development entity (usually a unit trust or company), GST and margin scheme elections, profit extraction strategy, depreciation schedules, and wind-down of the development structure post-completion. YML Finance arranges the finance. The YML Group accountants handle the tax and structural side. YML Legal handles the legal documentation. One integrated team, not four separate advisors who’ve never spoken to each other. Development projects arranged that way run more cleanly and are less likely to hit structural problems mid-project.
Common Questions
Do I need presales to get development finance in Sydney?
For five or more dwellings: most lenders require presale coverage, typically 80–100% of the loan amount covered by unconditional contracts. For smaller projects (duplexes, triplexes, small townhouse developments): some lenders will fund without presales on strong feasibilities with experienced developers. We advise on what applies to your specific scale and location.
What LVR is available for development finance?
Typically 65–75% of Total Development Cost. Some lenders go to 80% for experienced developers with strong presale coverage and well-located projects. The GRV-based limit is usually 65–70% of end value. We model your specific project to show the real funding position before you commit to a site.
Can first-time developers access development finance?
For small-scale first projects, duplex, dual occupancy, small townhouse, yes, some lenders will consider it with strong feasibilities and appropriate professional support. For larger projects, lenders generally require demonstrated developer experience. We give you an honest view of what’s achievable based on your experience level and project scale.
How long does development finance approval take?
Six to twelve weeks from a complete application, depending on project scale. Independent quantity surveyor reports, feasibility verification, end-value assessment and complex legal documentation all extend the timeline beyond standard residential. We manage the process and keep you and your solicitor informed throughout.
Call Jay, 0425 228 882
YML Finance | ACL 398415 | MFAA Member | Sydney Development Finance
General information only. Not credit, tax or legal advice. Acctpro Finance Pty Ltd ACL 398415. Commission received from lenders in most cases, see our Fees & Remuneration page.