Due to our large selection of lenders, the team at The Alliance Group has various options for Development Funding to suit most scenarios. Development Funding requires someone who knows lender policy thoroughly and all the intricacies of information required for the best chance of approval. Whether you have 100% presales or no presales at all, our committed consultants can tailor a solution to suit your project.
Generally, most banks have the following requirements
- Most require 100% debt coverage in Pre Sales
- LVR of 65% of GRV (excl GST) or 80% of cost (the lesser of)
- Developer needs a CV showing extensive experience in industry
- Full Financials of Developer
Each development is so different, the lending parameters change depending on who, what, when, where and how the proposed development is taking place. The correct debt structure is vital for maximising profits in a project.
Below are some of the loans covered by our Development Finance solutions.
Refurbishment loan
For this loan, the lender offers an initial advance which is based on the percentage of the refurbishment costs. The costs includes the balance of the released post works as well as re-inspection of the property. We can provide the refurbishment loan based on the projected value of the property after it is refurbished. This is also based on the possible income generated from renting or leasing the property.
Bridging loan
This loan is basically a short term financing option which is often used for property related uses. However, bridging loans can be used for other uses as well. This includes making a deposit when buying something from an auction. There are two variations of a bridging loan:
Variable – There is no fixed date as to when you need to pay off the loan. However, you are expected to repay it within a year. The interest rate for a variable bridging loan isn’t fixed as well where it can go down or up.
Fixed – Fixed bridging loan has a set date of repayment. The interest rate is fixed where you pay the same amount each month.
Land development loan
Alliance Financial Group can provide a fund advance in order to convert the open land into a building site. The building site is made suitable for the construction of residential or commercial buildings. The loan covers the cost in buying the land as well as the equipment and labour to develop it.
Contact one of our qualified development finance consultants by clicking Apply Now below or enquiring to the right for more information.
Apply Today
Applying for finance with the Alliance Group is easy. Give us a call or apply online.
