The lending landscape for developers is constantly evolving with lenders changing their appetite regularly.
Property development loans are broadly classified into two categories: residential and commercial. Residential property development loans are for smaller projects (up to four residences on one block of land). Commercial property finance on the other hand is used for larger-scale, multi-residential developments (as well as for a range of other business purposes).
Funding failure is one of the most common causes of failed developments, so it’s crucial to get your property development finance right from the start. Your commercial finance broker and lender should be involved with the project at the beginning. It’s important to know, particularly if you’re first-time developer, you’re likely to need some personal equity to use as security for your loan.