Applying for development finance can be a complex process. There are numerous requirements that a lender will need to consider when reviewing an application, such as:
- Experience
- Financial strength
- Location and profit potential
- Project management experience
- Type of development (residential or commercial)
- Exit strategy
- LVR of 65% of GRV (exc GST) OR 80% of cost (lesser of)
- Generally require 100% debt coverage in pre-sales
- Full financial documentation of the developer
Approvals for development finance are now becoming more challenging as lenders want to ensure that their risk is reduced before providing funds for a development project. As a business owner or investor, it is important you are fully aware of all lender requirements to ensure that your loan proposal is approved at minimal risk.
Whether you have 100% pre-sales, or no pre-sales, at Build Invest Grow we know the importance of tailoring each loan proposal on a project by project basis. Our team will work with you to ensure you’re in the best position to achieve the greatest return.
Come and speak to our team at Build Invest Grow to find out more about how we can help you secure your next development loan.
