Property Development Finance: 
Smart Ways to Secure a Loan

What Is a Property Development Loan?

Property development finance is designed to fund the entire lifecycle of a real estate project — from site acquisition to construction and, ultimately, the completion and exit of the development. These loans are specifically structured to align with the cash flow and risk profile of property developers, allowing access to funding in stages as the project progresses.

Whether you’re building boutique townhouses, launching a multi-storey apartment complex, subdividing a residential block, constructing a retirement village, or spearheading a mixed-use commercial precinct, this type of loan is purpose-built to support every phase of your project.

At York Finance, we specialise in sourcing and structuring property development finance across Australia. With strong relationships with both bank and non-bank lenders, we connect developers with competitive and flexible funding options that suit their project timelines and goals. We understand the complexities of raising finance for property development — and we simplify it. From your first conversation with us, you’ll notice we ask smarter questions and deliver more tailored advice.

How to Finance Property Development in Australia

So, how do you get property development finance in Australia? It’s a journey, not a single transaction. The financing approach varies depending on your stage in the development lifecycle. Understanding how to structure your finance properly can be the difference between success and stress.

Let’s break it down:

• Acquisition – This is your land or site purchase stage. Typically funded by bank or private land loans, this stage is based on current land value. We help secure the funding fast, so you don’t miss out on that perfect opportunity.
• Planning & Approvals – While waiting for your DA or planning approvals, some lenders will offer bridging loans or short-term capital. This phase often needs equity support but unlocks major value for the next phase.
• Construction – Once you have your approvals and pre-sales (if required), it’s time to build. Construction funding is typically structured as senior debt or stretched senior loans, allowing for staged drawdowns aligned with the build timeline.
• Exit or Refinance – After completion, your strategy might include selling down the stock, refinancing into a longer-term facility, or retaining part of the project. Here, preferred equity or mezzanine finance can bridge any funding gaps and improve returns.

Whether you’re asking how to finance property development from end to end or just need help structuring a specific stage, York Finance offers practical, commercial advice.

What Types of Projects Can Be Financed?

At York Finance, we understand that no two developments are the same — and neither are their funding needs. We work with a wide variety of project types across the Australia. Whether you’re building homes for families or infrastructure for business, we can help you obtain property development finance.

Here are just some of the property types we regularly finance:

• Residential Developments — From duplexes and townhouse complexes to large-scale apartment buildings, we help developers bring new housing to life in both metro and regional locations.
• Commercial Developments — Offices, retail strips, medical centres and other income-producing assets fall into this category. These projects typically require detailed cash flow forecasting, and we structure finance accordingly.
• Industrial Developments — Warehouses, logistics centres and manufacturing hubs often require tailored funding to support large site acquisitions and high-spec fit-outs.
• Mixed-Use Developments — Combining residential and commercial elements, mixed-use projects require layered finance strategies. We can assist with multi-stage and multi-use structuring.
• Specialised Developments — These include high-spec or niche projects like petrol stations, childcare centres, hotels and aged care facilities. They often involve unique planning considerations, but we have the lender relationships to make them work.

Whatever the size, location or complexity of your project, we’ll help match the right property development finance to your vision.

How Much Can You Borrow?

We consistently provide support for property development finance, offering loans loans starting from $1 million and extending well beyond $50 million, depending on the scale and scope of the project. From inner-city apartment developments to regional land subdivisions, we tailor funding solutions that match your ambitions.

Lenders typically use one of the following benchmarks:

• Up to 80% of Total Development Cost (TDC)
• Or up to 65% of Gross Realisable Value (GRV) at project completion

What influences the borrowing limit?

• Your track record and development experience
• Strength and clarity of your feasibility study
• Volume and quality of pre-sales or lease agreements
• Project type, end value, and geographic location

Need help calculating your funding potential? We provide detailed project assessments to ensure your loan structure maximises leverage without overexposing your risk.

Eligibility Criteria

Getting approved for property development finance isn’t just about the numbers. Lenders take a holistic view. Here’s what they generally look for:

• Development experience – Have you completed similar or larger projects successfully? If not, is there a strong builder or project manager on board?
• Feasibility and cost analysis – Does the project deliver healthy profit margins? Are the contingencies realistic?
• Project location and type – Is the site in an area with strong demand and local council support?
• Equity contribution – How much of your own capital or equity is going into the deal?
• Pre-sales or leasing commitments – Off-the-plan sales help de-risk the project and are a common lender requirement for larger loans.

Even if you’re unsure about some of these, speak to us first. We’ve helped many first-time developers and seasoned builders alike get across the line.

Types of Development Finance We Offer

We don’t believe in cookie-cutter lending. Every development is unique, and your funding structure should be too. Here are the key property development finance products we arrange:

• Senior Debt – Generally the lowest-cost form of finance, ideal for core funding needs. Typically covers up to 80% of TDC or 65% of GRV.
• Stretched Senior Debt – When your project is well planned and de-risked, we can often source higher leverage by stretching the senior loan limit.
• Mezzanine Finance – Sits behind the senior debt as a second-tier loan. Useful for boosting total funding without diluting ownership.
• Preferred Equity – A flexible option that offers investors a share of profits instead of traditional repayments. Perfect for complex or higher-yielding developments.

We help you mix and match the right layers of capital so you can get your project funded with the least friction and maximum return.

Why Choose York Finance?

There are many sources for property development finance out there. So why do developers keep coming back to York Finance?

• Access to Australia’s leading lenders – From major banks to niche private funders, we bring you options others can’t.
• End-to-end project support – We don’t disappear after loan submission. We support your project through drawdowns, lender negotiations, and unforeseen hurdles.
• Australia-wide reach – We fund projects in Sydney, Melbourne, Brisbane, Adelaide, Perth and regional centres. No postcode bias here.
• Custom structuring – Whether you’re building 4 townhouses or 400 units, we tailor the loan structure to your needs.
• Developer-first mindset – We speak your language and fight for your funding like it’s our own project on the line.

Recent Case Studies

8-Townhouse Build, Western Sydney
Our client acquired a DA-approved site and needed fast funding to start construction. We secured 75% TDC senior debt plus a mezzanine top-up to complete the capital stack. The project sold out 90% prior to completion, maximising profit and accelerating the exit.

12-Lot Land Subdivision, Newcastle
Developer needed funding for staged civil works and land releases. We structured a progressive drawdown loan with a top-tier non-bank lender. Full approval was achieved in under three weeks.

Mixed-Use Apartment Project, Melbourne
During a turbulent rate environment, our client struggled to secure bank funding. We arranged a hybrid structure using senior debt and preferred equity. This reduced pressure on cash flow during construction and boosted returns upon sale.

Ready to Raise Finance for Your Development?

Whether you’ve got a shovel-ready project, a raw land site, or a partially approved plan in hand, we’re ready to help you make it happen. At York Finance, we don’t just match you to lenders — we work with you to create a strategy that gets your property development finance approved, project off the ground, delivered on time and on budget.

Get in touch today and let’s explore your options.

REQUEST A CALL

Schedule a Call or Consultation using our online booking system