Property Development Finance Melbourne
Looking for property development finance in Melbourne? Whether you're planning a townhouse development, subdivision, apartment project, mixed-use build or commercial development, having the right funding structure is critical to project success.
At Aus Wealth, we help Melbourne developers, investors and business owners compare tailored development finance solutions suited to different project sizes, timelines and financial situations. We work with banks, non-bank lenders and private lenders to help structure funding around your project requirements.
You can also explore related finance options including commercial loans Melbourne, construction loans Melbourne and commercial property loans Melbourne.
What Is Property Development Finance?
Property development finance is a specialised funding solution designed to support development projects from land acquisition through to construction and project completion. These loans are commonly used by developers, investors and builders undertaking residential or commercial development projects.
Unlike standard residential lending, development finance is generally structured around project feasibility, construction stages, project costs, end value and the developer’s overall experience and financial position.
Types of Development Projects
Townhouse Developments
Finance for townhouse construction, dual occupancy projects and residential developments.
Apartment Projects
Funding for apartment developments, multi-unit projects and larger residential builds.
Commercial Developments
Commercial funding for offices, retail spaces, warehouses and mixed-use developments.
Subdivision Projects
Finance solutions for land subdivision and development-related infrastructure works.
How Development Finance Works
Development finance is usually structured with progress payments released throughout the construction phase. Funds are drawn in stages based on project milestones, helping lenders manage risk while supporting the ongoing build process.
Depending on the project, the loan may cover:
- Land acquisition or site purchase
- Construction and builder costs
- Professional fees and permits
- Subdivision or infrastructure expenses
- Project-related holding costs
How Lenders Assess Development Finance Applications
Lenders carefully assess development applications because projects often involve larger loan amounts, staged funding and higher construction risk compared with standard property loans.
Project Feasibility
Assessment of total development cost, expected end value and project profitability.
Borrower Experience
Developer background, construction experience and previous project history.
Financial Position
Review of income, assets, liabilities, cash flow and available contribution funds.
Exit Strategy
How the loan will be repaid through sale, refinance or long-term retention.
Types of Development Finance
Different projects may require different funding structures depending on size, timeline and lender appetite.
- Residential development loans for houses, duplexes and townhouses
- Commercial development finance for retail, office and industrial projects
- Construction finance for staged building funding
- Mezzanine finance for additional project funding layers
- Private lending solutions for non-standard or time-sensitive projects
For projects requiring staged construction funding, our construction loans Melbourne page may also be useful.
Interest Rates and Loan Structures
Interest rates for property development finance can vary depending on the lender, project complexity, borrower profile and overall project risk. Most development loans are structured as short to medium-term facilities with interest-only repayments during construction.
Some lenders may also require contingency funding, presales or additional security depending on the scale and complexity of the project.
Why Use a Development Finance Broker?
Development finance can be complex because lender requirements, funding stages and project structures vary significantly. Working with a broker can help compare lender appetite, structure the application correctly and identify suitable finance options.
At Aus Wealth, we work with banks, non-bank lenders and private lenders to help Melbourne developers access suitable finance solutions for residential and commercial projects.
Our Development Finance Process
1. Review Project
We assess your development plans, project feasibility and funding goals.
2. Compare Lenders
We compare development finance options from suitable lenders.
3. Prepare Application
We assist with documents, feasibility and lender requirements.
4. Ongoing Support
Support throughout approval, construction stages and project completion.
Frequently Asked Questions
What is property development finance used for?
It is used to fund land acquisition, construction costs, permits, subdivision expenses and development-related project costs.
Do I need experience to get development finance?
Experience helps, but some lenders may consider first-time developers if the project feasibility and financial position are strong.
Are progress payments required?
Yes, most development loans are structured with progress payments aligned to construction milestones.
Can I use development finance for commercial projects?
Yes, development finance can be used for residential, commercial and mixed-use development projects.
Need Property Development Finance in Melbourne?
Aus Wealth can help you compare lenders and explore suitable development finance solutions for your next project. Whether you are planning a residential or commercial development, our team can guide you through the process.
