What are construction loans and how do they work?
A construction loan is a short-term financing facility used to fund the building or development of residential, commercial, or mixed-use property. Unlike a standard property loan, construction finance is drawn down in stages as building milestones are reached, rather than advanced as a single lump sum at settlement.
In Brisbane and across South East Queensland, construction loans are commonly used for townhouse developments, apartment buildings, residential subdivisions, commercial fit-outs, and mixed-use projects. The growing population and infrastructure investment in the region continue to drive demand for flexible development finance from non-bank lenders.
Each draw-down is typically verified by an independent quantity surveyor who inspects the site, confirms that the work completed matches the approved construction budget, and certifies that the remaining budget is sufficient to complete the project.
Who are construction loans designed for?
Construction loans are designed for property developers undertaking building projects across Brisbane and Australia. This includes residential developers building townhouses, apartments, and house-and-land packages, commercial developers constructing offices, retail spaces, and industrial premises, land subdivision developers undertaking civil works and infrastructure, and experienced or emerging developers with a sound project and clear exit strategy.
Why choose Granor Capital for construction finance in Brisbane?
Granor Capital is headquartered in Brisbane and understands the local property market. As a non-bank lender, we offer several advantages over traditional bank construction finance. Our credit decisions are made directly by experienced decision-makers, not passed through multiple committee layers. We do not impose mandatory pre-sale requirements on qualifying projects. We offer flexible loan-to-value ratios of up to 80 per cent, assessed conservatively with independent valuations on all security properties. We actively monitor each loan throughout its term.
For Brisbane developers, working with a local non-bank lender means faster turnaround times, direct engagement with the people assessing the application, and a willingness to consider project-specific factors that may fall outside standardised bank assessment models.
Construction loan specifications
Granor Capital provides construction loans with the following parameters. Loan sizes range from $200,000 to $20,000,000. Terms are typically 12 to 24 months. Loan-to-value ratios are available up to 80 per cent. Security is provided by a first registered mortgage over Australian real property. We lend across Brisbane, the Gold Coast, the Sunshine Coast, South East Queensland, and other major Australian capital cities. All applications are assessed against documented credit criteria with independent valuations obtained on all security properties.
How do I apply for a construction loan with Granor Capital?
The application process for a construction loan with Granor Capital involves five steps. First, contact our lending team with your project details for an initial enquiry. Second, we conduct a feasibility review to assess your project on its individual merits. Third, we provide indicative terms based on the information provided. Fourth, we undertake a full credit assessment including an independent valuation of the security property. Fifth, upon approval, the loan is settled and staged draw-downs begin in line with construction milestones verified by an independent quantity surveyor.
How long does it take to get a construction loan approved?
As a non-bank lender, Granor Capital can typically provide indicative terms within days of receiving a complete application. Full credit assessment and approval timelines depend on the complexity of the project, the quality of the documentation provided, and the time required for independent valuation. In many cases, the process from application to settlement is significantly faster than traditional bank construction finance.
Do I need pre-sales to get a construction loan?
Granor Capital does not impose mandatory pre-sale requirements on qualifying construction projects. While pre-sales can strengthen an application, we assess each project on its individual merits, including the feasibility of the development, the quality of the security, the borrower’s experience, and the proposed exit strategy. This approach contrasts with many traditional banks, which may require pre-sales covering 80 to 100 per cent of the senior debt before approving construction finance.
What is the maximum loan-to-value ratio for construction loans?
Granor Capital offers construction loans with loan-to-value ratios of up to 80 per cent. The LVR is assessed conservatively using an independent valuation prepared by a certified practising valuer. Valuations may be conducted on an “as is” basis, an “as if complete” basis, or both, depending on the nature of the project. The maximum LVR available for any individual loan depends on the quality of the security, the borrower’s track record, and the overall risk profile of the project.
What documentation do I need for a construction loan application?
To apply for a construction loan with Granor Capital, you will typically need to provide a detailed feasibility study covering total project costs and expected end value, development approval or planning permit from the relevant council, architectural plans and specifications, a fixed-price building contract or detailed cost estimate from a qualified builder, evidence of your equity contribution, and information about your experience and track record in property development. Our team can advise on specific documentation requirements based on the nature of your project.
Ready to discuss your construction project? Contact Granor Capital’s lending team to explore your options.
Related resources: Granor Capital lending services | Property development finance | Construction loans guide | How to apply for a development loan
This page is provided for general information purposes only and does not constitute financial product advice or a recommendation. Granor Capital does not provide personal financial advice. You should seek independent financial, legal, and taxation advice before making any borrowing or investment decision.