Property Development Finance
Whether you’re new to property development or a seasoned pro, securing the right funding is key to a project’s success. We offer a full suite of services to manage the end-to-end financing for your project, from small-scale builds to large-scale developments.
With our unique position as both a mortgage advisor and a lender, we can provide you with more options. We can connect you with major banks and specialist lenders. We arrange finance for everything from a single house build to multi-unit apartment complexes.
Our Finance Solutions
We provide a range of financing options designed to meet your specific needs:
- Construction Loans for Builders: Get access to an efficient, low-cost lending facility built specifically for builders.
- End-to-End Development Finance: We help you maximize returns and manage risk with a range of lending options, from traditional bank loans to more flexible non-bank solutions.
- Land Banking: Need funds to secure land before construction begins? Our lending solutions can be designed to help you bridge this gap.
- Bridging Finance: Our flexible lending solutions can provide the cash flow you need to keep your project moving, even when traditional banks can’t.
Construction loans and turnkey for builders
Get access to an efficient and low-cost lending facility designed especially for builders, for simple house builds all the way through to terraced house and apartment projects. Find out more.
End-to-end residential property development finance
Smart developers know it’s about making your money work harder, and managing the risks. With us on your team you get a fairer deal, and access to more lending options. Check out this case study.
Landbanking
The development life-cycle is long, and it’s likely you’ll need funds to secure the land ahead of construction. We can help using our lending facility.
Bridging finance
Sometimes you need to bridge the cashflow gap to get your project moving. Our lending facility is flexible and we can work outside of the traditional bank criteria
A Developer's Guide to Getting Funding Approved
Securing property development finance in New Zealand requires careful planning and a clear understanding of what lenders assess when reviewing an application. Whether you’re working with a major bank or a specialist non-bank lender, approval is typically based on the following key factors:
Project Feasibility
Lenders will require a detailed feasibility study that outlines construction costs, expected end values, timelines, and projected profit margins. This helps demonstrate that the project is commercially viable and well thought through.
Deposit and Equity Contribution
Developers are generally expected to contribute a meaningful level of equity or cash into the project. This reduces lender risk and shows commitment to the development.
Developer Experience and Team
Your experience matters. Previous successful developments, or having a strong professional team in place (such as a reputable builder, architect, and project manager), can significantly strengthen your application.
Build Contract and Documentation
A fixed-price building contract, council-approved plans, and clear project timelines are essential. These provide lenders with confidence around cost certainty and delivery.
Exit Strategy
Lenders will want to clearly understand how the loan will be repaid. This may include the sale of completed units, refinancing upon completion, or holding the properties as long-term investments.
With the right preparation and advice, development finance can be structured strategically to support your project from start to finish.
Common Financing Fees
When arranging development finance, it’s important to understand the typical fees that may apply. These costs vary depending on the lender, loan structure, and project risk profile, but commonly include:
Establishment Fee
A one-off fee, usually around 2–3% of the total loan amount. This fee is often capitalised and added to the loan rather than paid upfront.
Line Fee
A fee charged on the total approved loan limit for the duration of the facility. This may be charged monthly or annually, regardless of how much of the loan has been drawn.
Valuation and Due Diligence Costs
Lenders may require independent valuations, quantity surveyor reports, legal reviews, and other due diligence documents before approval and during the build.
Understanding these costs upfront allows you to accurately assess the total funding requirements and plan your project with confidence.
Common Questions
How much deposit is needed for a development?
Banks typically require a 30-35% deposit, while non-banks may offer higher LVRs. In some cases, we’ve even been able to secure 100% funding, so you might need less than you think to get started.
What is mezzanine finance?
Mezzanine finance is a high-interest loan from an alternative source that sits between a developer’s equity and the senior debt from a primary lender. It’s used to bridge funding gaps but comes with a higher cost due to its risk.
Banks vs. non-bank lenders: Which is better?
It depends on your project. Banks are often cheaper, but their strict criteria can make the process longer and more difficult. Non-bank lenders offer more flexibility and a higher risk appetite but are usually more expensive. We can help you weigh the pros and cons to find the right option.
What due diligence do I need to do?
A robust project feasibility report is crucial. This detailed roadmap should outline your plans, potential challenges, and all financials, painting a clear picture of expected returns. A well-prepared feasibility report is essential for securing funding.
Ready to Get Started?
There’s a lot to consider in property development, and getting the right advice is key. We’re here to help you navigate it all.