No Doc Development Loans


In the wake of the 2018 Royal Commission into Banking, many of the major players are tightening their lending criteria and obtaining Development Funding from Banks has become more difficult. As a result, second tier banks, private funders and joint venture funders are increasingly becoming a popular alternative for some developers.

No Doc Development Loans main advantage is generally they do not require pre-sales or financials and are typically far more flexible in their lending criteria.

General facilities are up to 65% GRV (gross realisation value) or to 80% of TDC (total development costs) – with no pre-sales options and stretched Senior Facilities to 75% of GRV & 90% of TDC with minimum 25% pre-sales & acceptable ROI.

Funding is also available for incomplete or partially complete projects and land subdivision.

Key Points:

  • Up to 90% of Total Development Costs (TDC)
  • Up to 75% of Gross Realisable Value (GRV)
  • Rates start from 8% plus establishment and set up fees
  • Loan Amounts from $1M to $250M
  • Well located projects only
  • Flexible pre-sale requirements (including overseas buyers)
  • Overseas developers accepted

Development Finance

In development finance, the borrower prepares information for lenders including a feasibility analysis showing land purchase costs, constructions costs, gross realisation value and the expected development margin before submitting to a funder for consideration.

Initial Documentation Required:

  • Overview of the project with key metrics summarised
  • Valuation Report and Quantity Surveyor Report if available
  • Copy of the contract of sale (if acquisition).
  • Details (lender and outstanding balance) of any mortgages currently on the property.
  • Feasibility study for the project.
  • Copy of the Development Approval and Building Approval (Construction Certificate)
  • Confirmation of Pre Sales contracts if available
  • Copy of  fixed Price Building Contract  or Confirmation of construction / development costs
  • Details of the proposed builder and a resume of their building experiences
  • Resume of the borrowers development / building experiences