Development Finance Broker in Sydney — We Navigate What Banks Reject

What Is Development Finance?

Development finance is specialist lending used to fund the construction of multiple dwellings, commercial properties, or complex mixed-use developments. Unlike a standard construction loan (which funds a single home), development finance is structured around the entire project — from land acquisition through to construction completion and exit.

Lenders assess development finance applications differently to residential mortgages. They focus on project feasibility, Gross Realisation Value (GRV), Land-to-Cost Ratio, pre-sales status, developer experience, and exit strategy. Interest is usually capitalised during the construction period and repaid from sales proceeds at completion, rather than serviced monthly during the build.

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   Gross Realisation Value (GRV)

   GRV is the total estimated value of the completed project — the sum of all units or lots at end-value. Lenders set their maximum loan as a percentage of GRV (typically 65–75%). This is the primary lens through which development finance is sized. A strong independent valuation of the completed project is critical to your approval.

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   Pre-sales requirements

   Many lenders require pre-sales — executed contracts from buyers — before releasing funds. Common thresholds are pre-sales equal to 100% of the loan amount, though this varies by lender and project. Specialist and non-bank lenders can be more flexible for experienced developers. We identify which lenders suit your pre-sales position upfront.

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   Capitalised interest

   Development finance interest is typically capitalised — added to the loan balance during the construction period rather than paid monthly. This preserves cash flow during the project. The entire loan (principal plus capitalised interest) is repaid from settlement proceeds when completed units are sold. Lenders factor capitalised interest into the total facility when assessing feasibility.

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   Exit strategy

   Every development finance lender wants a clear exit — how and when the loan will be repaid. The most common exit is sale of the completed units. Holding unsold stock (residual stock) is a risk lenders price accordingly. If you plan to hold some or all units as rentals, we structure the finance with an exit to investment loans pre-planned from day one.

Every Type of Development Finance We Arrange

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   Residential Development Finance

   Finance for multi-unit residential projects — duplexes, dual occupancies, townhouse developments, boutique apartment buildings (4–20 units), and larger apartment projects. This is the most active segment of the development finance market. Lenders vary significantly in their appetite for different project sizes, locations, and pre-sales positions. We match your project to lenders actively lending in this space.

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   Commercial Development Finance

   Finance for commercial construction — retail, office, industrial, childcare, medical centres, and similar asset classes. Commercial development finance sits in a specialist lending segment with different LVR benchmarks, valuation methodology, and lender appetite compared to residential. We work with specialist commercial lenders who understand the commercial development market and can structure appropriate facilities.

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   Land Subdivision Finance

   Financing the subdivision of land into multiple lots — whether residential greenfield lots, large acreage rural subdivisions, or industrial land estates. Subdivision finance covers land acquisition and the cost of civil works, infrastructure, DA costs, and registration. Lenders assess subdivision feasibility based on the number of lots, individual lot values, absorption rates, and your ability to service or capitalise interest through the approval and construction period.

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   Construction Finance & Refinance

   If your project is already under construction and you need to refinance — whether your existing lender has exited the market, changed terms, or your project has been delayed — we can source alternative development finance mid-project. We also arrange refinancing of residual stock from completed developments into standard investment loans, freeing capital for the next project.

How Development Finance Works

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   Land acquisition

   Many developers begin with a land loan or bridging facility to acquire the site before DA approval. Once DA is obtained and a development finance facility is established, the land loan is refinanced into the development facility. We structure land acquisition finance with the development exit in mind from day one.

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   Facility approval

   The full development facility — covering land, construction costs, QS-monitored drawdowns, and capitalised interest — is approved based on the feasibility, independent valuation, pre-sales evidence, and project documentation. This is the most complex stage and where proper preparation is most critical.

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   Construction drawdowns

   Funds are drawn in stages as construction milestones are certified by the lender's Quantity Surveyor (QS). The QS inspects work completed at each stage before funds are released. This protects both the lender and the developer against builder performance issues.

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   Interest capitalisation

   Interest accrues and is added to the loan balance throughout the construction period. You don't make monthly interest payments — the accumulated interest is paid from settlement proceeds at the end of the project, preserving cash flow during the build.

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   Exit: sales or refinance

   As units are sold and settled, proceeds pay down the facility. Once the loan is fully repaid, remaining equity flows to you. If holding stock for rental income, we coordinate the transition to investment loans as part of the exit from day one — no refinancing surprises.

Why Developers Choose RyRo Loan Centre

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   Specialist lending panel — not just the big banks

   We have direct relationships with specialist and non-bank development finance lenders who aren't accessible over the counter. These lenders move faster, take a more common-sense view of feasibility, and have more flexible pre-sales policies than the majors.

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   We prepare complete, lender-ready applications

   Incomplete or poorly structured development applications are declined instantly. We prepare your application with everything lenders need — feasibility summaries, QS reports, DA evidence, pre-sales schedules, and developer CVs — the first time.

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   13+ years of specialist lending experience

   We have been managing complex and specialist lending across residential, commercial, and development categories for over a decade. We know how lender appetite shifts with market conditions and which lenders are genuinely open for business at any given time.

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   $0 fees — we are paid by the lender

   Our development finance brokerage service carries no upfront fee. We are paid by the lender on settlement. You get specialist broker expertise and full market access at no cost.

Development Finance FAQs