Commercial Developments

Commercial Development Finance in Sydney, Construction, Subdivision & Residual Stock

Funding a development is about the numbers stacking up and the right lender backing your feasibility. RyRo Loan Centre arranges construction, land subdivision, and residual stock finance across 50+ bank, non-bank, and private lenders for Sydney developers. We model the deal, match the funder, and keep your drawdowns on time. $0 broker fees on most deals.

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Sumit - Director & Senior Loan Specialist

“Just tell us what you're buying, we'll match you to the right lender. No pressure, no obligation.”

Sumit · Director & Senior Loan Specialist

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Development Finance, Updated July 2026

Finance That Follows Your Build, Not Your Payslip

Development finance is assessed on the project, not your salary. Lenders look at total development cost, the projected end value, your feasibility, the builder, and how you will exit through sale or refinance. Funds are released in stages as the build progresses, and interest is often capitalised so you are not funding repayments mid-project. Get the structure right and the deal flows. Get it wrong and drawdowns stall.

RyRo Loan Centre arranges development finance across banks, non-banks, and private lenders for Sydney and NSW developers. We know who is funding construction right now, at what leverage, and with what pre-sale requirements. See our broader commercial lending services or our specialist development finance page, or get in touch to talk through your project.

50+
Bank, non-bank, and private lenders compared
$0
Broker fees on most development deals
13+
Years structuring development and construction finance
What We Fund

Development Projects We Finance

  • Residential unit and apartment developments across Sydney and the growth corridors
  • Townhouse, villa, and duplex projects, including first-time small developments
  • Land subdivision and civil works, from two lots to large englobo sites
  • Commercial and industrial builds, including warehouses, offices, and childcare
  • Mixed-use projects combining retail or commercial with residential above
  • Residual stock loans to refinance completed, unsold units and free up capital

Whether you are building a duplex in the Hills District or a unit block in Western Sydney, we match your project and pre-sale position to the right funder. Working across the city, our Sydney mortgage broker team knows local lender appetite and valuation trends.

Leverage Guide

How Much You Can Borrow for a Development

Development lending is measured against cost and end value rather than a single loan to value ratio. Whichever limit is lower sets your ceiling. Here is a realistic guide to what lenders will support:

MeasureTypical LimitWhat It Means
Total development cost (TDC)Up to 70% to 80%Share of land plus construction the lender funds
Gross realisation value (GRV)Up to 65%Loan capped against projected end value
Land componentUp to 60% to 70%Funding against current land value
Residual stockUp to 65% to 70%Refinance of completed, unsold units
Private or stretched seniorHigher, deal by dealFor experienced developers with a strong exit

Limits are indicative and vary by lender, location, and feasibility. We assess realistic leverage for your specific project before you commit. Try our borrowing power calculator for a quick starting point.

The Process

How a Development Loan Works, Step by Step

  1. 1

    Feasibility and lender match

    We review your feasibility, land, and pre-sale position, then shortlist lenders whose policy fits your project size, experience, and timeline.

  2. 2

    Application and valuation

    We package the feasibility, building contract, builder profile, and plans. The lender orders an as-if-complete valuation and a quantity surveyor report.

  3. 3

    Approval and settlement

    On approval, the land settles and the facility is established. Any required pre-sales are confirmed before construction funding begins.

  4. 4

    Progressive drawdowns

    The quantity surveyor certifies each construction stage and the lender releases funds so your builder is paid on time. Interest is usually capitalised.

  5. 5

    Completion and exit

    On completion you sell down or refinance. Unsold units can move to a residual stock loan so you are never forced to discount to clear debt.

How To

How to Finance a Property Development

Financing a property development comes down to five things a lender wants to see: a feasibility that stacks up, enough equity in the deal, a credible builder, evidence of demand through pre-sales or leases, and a clear exit. Get those right and the funding follows. Here is the path most Sydney developers take:

  1. Build the feasibility. Total development cost, gross realisation value, contingency, and profit margin. Lenders want a margin on cost that shows the project can absorb a setback.
  2. Confirm your equity. Most lenders fund up to 70% to 80% of cost, so plan for a 20% to 30% equity contribution, whether cash, land equity, or a joint venture partner.
  3. Line up the builder and approvals. A fixed-price contract with an experienced builder and development approval in hand de-risk the deal in a credit assessor's eyes.
  4. Test the demand. Pre-sales or pre-leases lift your leverage and open the bank market. Low or no pre-sales point you to non-bank or private funders.
  5. Match the lender to the exit. Selling down suits construction finance with a residual stock backstop; holding suits a term or investment facility on completion.

We do this modelling with you before you buy the site, then take the deal to the funder most likely to back it. Start with our borrowing power calculator or book a free strategy call.

Funding Structures

Bridging, Mezzanine and Joint Venture Finance

Bridging finance for development

Short-term funding to secure a site, settle quickly, or cover the gap between projects while your feasibility and approvals are finalised. Bridging and development finance often work together: bridge the land, then roll into a construction facility once the deal is ready.

Mezzanine finance

A second tranche of funding that sits behind the senior loan and reduces the equity you contribute directly. Mezzanine costs more than senior debt, but it can make a project viable with less of your own cash in. We model whether the extra cost is worth the leverage for your deal.

Joint venture property development finance

Where a landowner and a developer, or two developers, partner on a project. Lenders assess the combined experience, equity, and structure. We arrange funding for JV structures and help present the partnership so credit understands who is doing what.

What Development Are You Looking to Fund?

Tell us the project and your feasibility, we'll identify realistic leverage and the right lenders.

No Credit Check100% Obligation-Free
Join thousands of clientsWe respond within 4 hours
Sumit - Director & Senior Loan Specialist

“Just tell us what you're buying, we'll match you to the right lender. No pressure, no obligation.”

Sumit · Director & Senior Loan Specialist

By submitting, you agree to our privacy policy and terms of service.

Why RyRo

Why Developers Choose RyRo

We match pre-sales to lender policy

Pre-sale requirements make or break a development timeline. We know which banks demand full debt cover and which non-bank and private lenders will fund with low or no pre-sales, so you are not forced to discount stock to satisfy a bank.

We stress-test feasibility before you commit

We model the numbers with you first: cost, end value, contingency, and exit. If a deal only funds at 65% of cost, you know your equity gap before you buy the site, not after.

Bank, non-bank, and private under one roof

Some projects suit a bank, some a non-bank, and some need private funding for speed or leverage. We compare all three and structure the deal to your timeline and exit.

We keep drawdowns on time

We coordinate the quantity surveyor and lender so each stage is certified and funded on schedule. Your builder gets paid without delay and the project keeps moving.

FAQs

Commercial Development Finance FAQs

What is commercial development finance in Australia?
Commercial development finance funds the cost of building or subdividing a property project, from land purchase and construction through to completion and sale. It covers residential unit developments, townhouse and land subdivisions, commercial and industrial builds, and mixed-use projects. Unlike a home loan, development finance is assessed against the total development cost and the projected gross realisation, with funds released in stages as the build progresses. Lenders focus on the feasibility, the builder, pre-sales or pre-leases, and a clear exit through sale or refinance.
How much can I borrow for a commercial development?
Development lending is measured two ways rather than by a single loan to value ratio. Lenders typically fund up to around 70% to 80% of total development cost, and separately cap the loan at roughly 65% of gross realisation value, the projected end value of the completed project. Land is usually funded to 60% to 70% of its value. Whichever limit is lower sets the ceiling, so your equity contribution and pre-sales largely determine how much a lender will advance. Private lenders can stretch leverage further for experienced developers with a strong exit.
Do I need pre-sales to get development finance?
It depends on the lender and the project size. Banks usually require pre-sales or pre-leases covering a set percentage of the debt, often 60% to 100% of the loan, before they will fund construction. Non-bank and private lenders take a more flexible view and can fund with low or no pre-sales, which suits smaller projects, residual stock, or developers who prefer to sell on completion into a strong market. We match your pre-sale position to a lender whose policy fits, so you are not forced to discount stock just to satisfy a bank.
What is a residual stock loan?
A residual stock loan refinances the unsold units left at the end of a development once the original construction loan falls due. Rather than being pressured to sell remaining stock quickly at a discount, you refinance the completed, titled units onto a term facility and sell them in your own time. Residual stock loans are typically funded to 65% to 70% of the value of the unsold units. They free up cash to move on to your next project and protect your margin on the final sales. We arrange these with non-bank and private lenders who specialise in completed stock.
What documents does a development lender need?
A development application is document-heavy. Expect to provide a detailed feasibility study, the fixed-price building contract, builder details and their track record, development approval and plans, a quantity surveyor report, pre-sale or pre-lease contracts, your development experience and financials, and a current as-if-complete valuation. For land subdivision, add the plan of subdivision and civil works costings. We prepare and package all of this so the credit assessor gets a complete, credible submission in one pass, which reduces conditions and speeds up approval.
How are development loans drawn down?
Development finance is released in progressive drawdowns tied to construction milestones rather than as a single lump sum. A quantity surveyor inspects the site and certifies each stage, such as slab, frame, lock-up, fixing, and completion, before the lender releases the next tranche. You only pay interest on the funds drawn, and interest is often capitalised into the facility so you are not funding repayments during the build. We coordinate the quantity surveyor and lender so drawdowns are approved on time and your builder is paid without delay.
How long does development finance take to approve?
A commercial development facility usually takes 6 to 12 weeks to arrange, allowing time for feasibility review, valuation, quantity surveyor reports, and pre-sale checks. Simpler projects with strong pre-sales and an experienced developer move faster. Private funding for time-critical situations, such as bridging a settlement or funding residual stock, can settle in days to a couple of weeks. We map the approval timeline to your land settlement or construction start date at the outset and manage the lender so nothing stalls.
Can first-time developers get development finance?
Yes, though the structure matters more. First-time developers can access development finance, particularly for smaller projects such as two to four townhouses or a duplex, but lenders will look closely at your builder, your feasibility, and your equity contribution to offset the lack of a development track record. A strong, experienced builder and a conservative feasibility go a long way. We often place first-time developers with non-bank lenders who assess the project on its merits, and we help present your first deal so it reads as low risk to credit.
What is the difference between construction finance and development finance?
A construction loan usually funds a single dwelling, a home or a knockdown rebuild, assessed largely on the borrower income and the end value of that one property. Development finance funds multi-dwelling projects, subdivisions, and commercial builds, and is assessed on the feasibility, total development cost, gross realisation value, pre-sales, and developer experience. The lender panel, documentation, and drawdown process are more involved. If you are building more than one dwelling or subdividing, you are in development finance territory rather than a standard construction loan.
Can I get bridging finance for a property development?
Yes. Bridging finance is often used to secure or settle a development site quickly, before the construction facility is ready, or to cover the gap between finishing one project and starting the next. It is short-term and usually priced higher than senior development debt, so the exit, whether a construction facility, a sale, or a refinance, needs to be clear. We frequently structure a bridge on the land that rolls into the construction loan once approvals and pre-sales are in place.
What is mezzanine finance in property development?
Mezzanine finance is a second layer of funding that sits behind the senior development loan and reduces the equity you need to put in directly. It fills the gap between the senior debt and your available equity, often taking total funding to 85% or more of cost. Mezzanine is more expensive than senior debt because it carries more risk, so it makes sense when the extra leverage lets you proceed with a project, or take on more projects, than your cash alone would allow. We model whether the added cost is justified for your deal.
How does joint venture property development finance work?
In a joint venture, two or more parties combine to deliver a project, commonly a landowner partnering with a developer, or two developers pooling equity and experience. Lenders assess the combined track record, the equity each party brings, and the legal structure of the JV. Funding can be arranged against the project with the partners as sponsors. We arrange development finance for JV structures and help present the partnership clearly so the credit assessor understands each party role, contribution, and the profit split.
Have a question not covered here? View all FAQs or ask us directly.
RyRo Loan Centre

Ready to Fund Your Development?

Join 2,000+ Australians who've trusted RyRo Loan Centre. Development finance across bank, non-bank, and private funders.

Sumit - Director & Senior Loan Specialist

“Development deals turn on feasibility and pre-sales. We model the numbers and match your project to the funder who will actually back it.”

Sumit · Director & Senior Loan Specialist

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