What is property development finance and how does it work?
Property development finance is a form of short-term lending that provides capital to fund the construction or development of residential, commercial, or mixed-use property projects across Australia. Unlike standard property loans, development finance is structured around the lifecycle of a specific project, from land acquisition through to completion and sale or refinance.
Loan terms generally range from 12 to 24 months. Funds are usually drawn down in stages as construction milestones are reached, with each draw-down verified by an independent quantity surveyor.
What types of property development does Granor Capital finance?
Granor Capital provides development finance for residential subdivisions, townhouse and apartment developments, commercial and mixed-use developments, pre-development finance for DA-approved sites, and land acquisition with demonstrable development intent. We lend across Australia’s major capital cities and regional centres.
How does Granor Capital assess development finance applications?
Every application is assessed on its individual merits using documented credit criteria. We evaluate the feasibility of the proposed development, obtain independent valuations on all security properties on an “as is” and “as if complete” basis, assess the borrower’s experience and track record, review the cost-to-complete and construction budget adequacy, and evaluate the proposed exit strategy. Loan-to-value ratios are assessed conservatively, with a maximum of 80 per cent.
Development finance loan 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. All loans are subject to documented credit assessment with independent valuations and active monitoring.
Why do property developers choose non-bank finance?
Many property developers work with non-bank lenders like Granor Capital because of faster credit decisions, direct engagement with experienced decision-makers, flexible pre-sale requirements, and the ability to structure loans around specific project requirements. For smaller and mid-sized developers, non-bank finance can provide access to capital that may not be available through traditional bank channels.
What is the minimum loan size for property development finance?
Granor Capital provides property development finance from $200,000 to $20,000,000, accommodating projects from small residential renovations through to larger-scale apartment buildings and commercial developments.
Do you finance developments outside Brisbane?
Yes. While headquartered in Brisbane, Granor Capital provides property development finance across Australia’s major capital cities and regional centres. We assess each application on the merits of the project regardless of location.
How quickly can development finance be approved?
Granor Capital can typically provide indicative terms within days of receiving a complete application. Full assessment depends on project complexity and valuation timelines, but is generally significantly faster than traditional bank development finance.
Ready to discuss your project? Contact Granor Capital.
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This page is for general information only and does not constitute financial advice.