Apartment Development Finance
Funding for apartment site acquisition, construction and refinancing, structured around your feasibility, equity, builder, presales and planned exit.
$12.5 Million Arranged for a Luxury Sydney Apartment Project
The Brokerage arranged site acquisition and construction finance for three luxury harbour-view apartments in Sydney’s Eastern Suburbs.
| Project detail | Funding arranged |
|---|---|
| Development | Three luxury apartments |
| Facility | $12,500,000 |
| Lender | Non-bank |
| Presales | One presale |
| Gearing | 65% LVR on completion and 78% of total development costs |
Published February 2018. These terms applied to this individual transaction.
Finance for Apartment Developers
We help developers and landowners assess funding for:
- Purchasing an apartment development site.
- Refinancing land debt before construction.
- Constructing an approved apartment project.
- Commencing construction with limited or no presales.
- Refinancing an existing development facility.
- Selling, retaining or partly retaining completed apartments.
Whether you are an experienced developer or undertaking your first apartment project, the assessment considers your financial position, delivery team, available equity and repayment plan.
Apartment Projects We Can Assess
Apartment development loans may be available for boutique buildings, low-rise and walk-up developments, larger residential apartment projects and mixed-use buildings with a residential component.
The building’s scale, location, construction method and intended use influence the available lenders.
Shared basements, lifts, structural works and building services also affect the budget and delivery programme. These need to be reflected in the funding proposal from the outset.
Site Purchase, Assembly and Land Refinancing
Apartment sites may involve an existing property, adjoining lots or a site with approval already in place.
We review the purchase arrangements, existing debt, planning status and the funding needed to reach construction.
Where suitable, acquisition and construction may sit within one facility. Other projects require separate land and construction loans, particularly while approvals or designs are being finalised.
For a project involving multiple properties, settlement dates and the lender’s security requirements need to be coordinated.
In a transaction published in October 2025, The Brokerage arranged a $14.2 million refinance and equity release over properties with apartment approval, providing time and capital to pursue revised approval.
Your Exit Shapes the Funding
Decide how you intend to repay the development facility before construction begins.
| Intended outcome | Funding considerations |
|---|---|
| Sell all apartments | Sales evidence, any required presales, settlement timing and mortgage release payments |
| Retain all apartments | Completed valuations, rental income, borrower servicing and eligibility for longer-term investment finance |
| Sell some and retain others | Debt repayments from sales, security releases and refinancing the retained apartments |
A plan to retain apartments needs a credible refinance assessment. Expected rental income does not, by itself, establish that the construction debt can be refinanced.
What the Facility May Fund
Depending on the lender and approved structure, apartment construction finance may cover:
- Land acquisition or repayment of existing site debt.
- Demolition, excavation and site preparation.
- Structural works and apartment construction.
- Basements, parking and shared access.
- Lifts, fire systems and building services.
- Approved professional fees and statutory costs.
- Landscaping and common areas.
- Construction contingency.
- Interest and finance costs included in the facility.
We identify which costs are eligible, which you must contribute and when those contributions are required.
How Lenders Assess an Apartment Development
The lender needs confidence in the project’s commercial viability, delivery and repayment.
Assessment commonly considers:
- Approved plans and outstanding conditions.
- Construction costs and the remaining cost to complete.
- Apartment mix, buyer demand and comparable sales.
- Developer experience and financial strength.
- Builder capability and construction arrangements.
- Accepted valuations and proposed gearing.
- Presales, where required.
- The sale or refinance exit.
We assess suitable bank and non-bank options around the actual proposal. The comparison includes funding conditions, total costs, security, drawdowns and repayment requirements.
Builder Capability and Contract Assessment
Apartment developments can concentrate substantial delivery risk in one building and one head contractor.
Lenders may examine the builder’s experience on comparable projects, financial capacity, current workload, licensing and relevant insurance.
The construction contract also needs to establish:
- The agreed scope and price.
- Exclusions and provisional sums.
- Progress payment arrangements.
- Treatment of variations.
- Completion obligations and timing.
A fixed-price contract still needs careful review. Excluded works, allowances and changes can leave costs outside the agreed price.
If the builder is a related party, or you are acting as both builder and developer, disclose this early so the appropriate lending options can be assessed.
Feasibility, Apartment Mix and Sales Evidence
Your feasibility should account for the full cost of delivering and selling or retaining the apartments.
Include acquisition expenses, construction, consultants, statutory charges, contingency, finance costs and selling expenses.
Support the projected apartment values with relevant market evidence. Different layouts, floor levels, views, parking arrangements and buyer markets can affect achievable prices.
The assessment should also test the effect of higher costs, lower sale proceeds and a longer delivery or selling period.
A cash-flow forecast then shows when funds are needed and whether the proposed facility and equity can meet those requirements.
How Much Can You Borrow?
Apartment development finance is commonly assessed against both the accepted property value and eligible project costs.
Loan-to-value ratio — LVR:
The loan compared with the lender’s accepted valuation.
Loan-to-cost ratio — LTC:
The loan compared with the development costs recognised by the lender.
The relevant valuation may be the site’s current value or the assessed value of the completed development.
The facility must satisfy all applicable lending limits. We also check the treatment of GST, finance costs and other allowances so the calculations use consistent definitions.
Equity Requirements and Available Construction Funds
Your required contribution depends on the accepted valuation, existing debt, eligible costs and facility structure.
Land equity may support the proposal, but you may still need cash for costs outside the loan, contributions required before drawdowns or construction overruns.
It is also important to distinguish the total facility limit from the funds available for construction.
Repayment of site debt, interest allowances and fees may use part of the approved facility. We assess the amount remaining for building works and the contribution needed throughout the project.
Presales and Qualifying Debt Coverage
Presale requirements vary between lenders and projects.
Where presales are required, the lender may assess contract conditions, deposits, purchaser concentration and the proceeds that qualify toward debt coverage.
A number of signed contracts does not necessarily establish that the funding condition has been met.
Some lenders consider apartment developments with limited or no presales. They still assess the feasibility, equity, location, delivery team, gearing and repayment plan.
We review the actual requirements before you commit to a sales campaign or construction start.
$6.5 Million Approved for a 20-Unit Development Without Presales
The Brokerage arranged a $6.5 million non-bank finance approval for a 20-unit residential development in Ascot, Queensland.
The overseas developers were undertaking their first Australian project and required finance without presales. The approved structure provided 60% LVR on completion.
Published February 2018. This was a project-specific approval.
Construction Drawdowns and Cost to Complete
Construction funding is generally released progressively against approved claims.
Depending on the facility, the lender may require:
- A claim consistent with the construction contract.
- Evidence of completed work.
- Inspection or quantity surveyor certification.
- Confirmation that remaining funds cover the cost to complete.
- Evidence that required borrower contributions have been made.
The claim process needs to align with the builder’s payment schedule.
Variations, delayed works and overruns can affect the remaining funding position. Addressing them early allows the lender to assess how completion will be funded.
Interest, Fees and a Realistic Loan Term
Compare the expected total funding cost, including establishment fees, interest, line or commitment fees, valuation, legal work, quantity surveying, drawdown charges and release costs.
Some facilities allow interest to be capitalised within an approved allowance. This reduces the need for cash interest payments during construction but increases the debt and uses part of the facility.
Other loans require interest to be paid during the project.
The loan term should allow for construction, completion documentation, title registration and the intended settlement or refinance period. Delays can increase costs and create a need for an extension.
Approvals and Completion Requirements
Apartment funding needs to account for the approvals and documentation required to complete and occupy the building.
In NSW, applicable projects can involve registered design and building practitioners, regulated designs, compliance declarations, expected completion notices and occupation certificate requirements.
In Queensland, the relevant building approvals, inspections and occupancy certification also need to be included in the programme.
Requirements depend on the state, building classification and project approvals. Your builder and certifier should confirm the applicable process.
Outstanding requirements can affect lender assessment, funding conditions and repayment timing.
Titles, Mortgage Releases and Purchaser Settlements
Practical completion does not automatically produce sale proceeds.
Individual apartment settlements may depend on occupation documentation, title registration, satisfaction of sale-contract conditions and the lender’s security releases.
Before entering contracts, understand the repayment required to release each apartment.
The lender may require a substantial portion of settlement proceeds to reduce the development debt. Those proceeds may therefore be unavailable for other projects or distributions.
Where apartments or stages settle at different times, the facility needs to accommodate the remaining debt and security.
Finance for Retained and Unsold Apartments
Retained investment apartments and vacant apartments awaiting sale can have different funding requirements.
Investment lending may be assessed around rental income, servicing capacity, completed valuations and ownership structure.
Residual stock finance may provide a pathway for eligible completed apartments while they are sold. Availability depends on the stock, remaining debt and proposed exit.
The Brokerage arranged $13.5 million across two separate facilities for a completed residential development:
- $6.5 million for leased apartments retained as investments.
- $7 million for residual stock to be sold progressively.
Published July 2025. The facilities were structured for that client’s circumstances.
Refinancing or Completing an Existing Apartment Project
We can review projects with existing development debt, approaching facility expiry or a requirement for completion funding.
Assessment may include the current payout amount, completed work, remaining costs, builder position, outstanding approvals and available equity.
The lender also needs a credible repayment plan based on sales or refinancing.
If the existing facility is under pressure, arrange a review early. The amount of time remaining can affect the options available and the ability to complete valuation, legal and funding requirements.
Documents Commonly Required
| Project documents | Borrower and funding documents |
|---|---|
| Site title details and purchase arrangements | Borrowing entity and ownership structure |
| Approved plans and approval conditions | Financial statements and assets and liabilities |
| Feasibility and cash-flow forecast | Existing loan balances and facility documents |
| Construction contract and builder information | Evidence of available cash and equity |
| Construction programme and cost breakdown | Developer experience and previous projects |
| Sales evidence and any presale contracts | Proposed sale or refinance exit |
| Quantity surveyor reports, where available | Details of additional security or guarantees |
For an initial discussion, provide the site address, proposed apartment count, approval status, estimated costs and funding requirement.
We can then identify what is needed for a detailed assessment.
How The Brokerage Approaches Your Funding
Review the project
Understand the site, proposed apartments, delivery stage, existing debt and intended exit.
Assess the funding position
Identify available equity, potential shortfalls and conditions likely to affect lender appetite.
Prepare the proposal
Present the project, borrower, builder and repayment plan with supporting information.
Compare suitable facilities
Review eligible options, including total costs, presales, security, drawdowns and release requirements.
Coordinate the application
Work through lender assessment, valuation, documentation and funding conditions.
Our teams in Brisbane and Sydney assist with apartment development funding enquiries across Australia, subject to lender location and project criteria.
Apartment Development Finance FAQs
Some lenders consider site acquisition or pre-development finance before approval. Construction funding generally requires the relevant approvals and supporting documentation. The stages may require separate facilities.
Some lenders consider first-time developers. Available equity, financial strength, a credible feasibility and an experienced delivery team can support the assessment. Previous townhouse experience may be relevant, but the apartment project is assessed on its own requirements.
Dwelling count is one consideration. Project purpose, building form, ownership, construction arrangements and the planned sale or retention also affect the lending pathway.
Lenders may consider company and trust borrowers. The entity structure, guarantees, financial position and security requirements need to be assessed.
A failed settlement can reduce or delay the proceeds available to repay the loan. The funding proposal should consider the remaining debt, sale alternatives and any eligible refinance pathway.
Timing depends on the lender, submission quality, valuation, builder review, legal documentation and outstanding conditions. An indicative offer is an early step; access to funds requires the remaining approval and settlement requirements to be satisfied.
Discuss Your Apartment Development
Tell us where the site is, how many apartments you propose, the approval stage and whether you intend to sell or retain them.
We’ll review the funding requirement, available equity and information needed to assess suitable lending options.
Call: 0451 973 662 Email: enquiries@thebrokerage.au
Finance is subject to lender assessment, approval and facility conditions.