Development and Construction Funding

Professional Mortgage Providers actively engages both private and non bank funds for all types of development projects from residential subdivisions to multi storey apartment buildings. Particular areas concentrated on include developments where high equity and profit margins are established, yet have been neglected for whatever reason, by a banks conservative lending approach. Loans range from $500,000 to $500 Million peak debt and funders for these projects include private individuals as well as major non bank institutions.

Senior and  mezzanine funding facities avaliable, where the senior and the mezzazine debt is the same funder.

Any borrower will be required to have beween 15% to 50% of equity in the land, depending on the nature of the development project.

A clear feasibility study is a must for all projects

Pre-sales are not always a priority and with some funders not required at all as they believe it marginalises the project by having to sell the end properties at a discount.
These lenders will look to fund any project up to 100% of “Total Development Costs” T.D.C. or 70% of  "Gross Realization Value" G.R.V. subject to the end profit margin. To secure 100% of TDC a developer would need to show clear profits of 30% - 35%. Anything less than this and the level of TDC lending will be lower.

With a prevailing interest rate of between 8.25% p/a and 13.9% p/a, depending on the "non bank" funder and if the application is a full doc or low doc.

As interest rates constantly change, please contact our office to discuss the latest interest rates and terms on offer.

PMP offers a wide range of Development and Construction funding sources as well as home loans and home mortgage products to suit your every need. To find the best home loan for your needs speak to an authorised PMP Credit Adviser, check out our mortgage calculators and our current home loan rates today.