Property Development Lending
Tailored finance solutions for your property development projects, from land subdivision to multi-unit builds.
Property Development Lending
Property development requires specialised lending that is structured differently from standard home loans. Whether you are subdividing land, building townhouses, or developing a larger residential project, we help you secure the right funding and manage the complexities of development finance.
Our property development lending service is designed for land developers, residential property developers, builders undertaking spec builds, and investors looking to add value through development.
Why Developers Choose Us
Specialist Development Finance
Development lending is fundamentally different from standard mortgages. We work with specialist development lenders who understand project-based lending, staged drawdowns, and the unique risks and requirements of property development in New Zealand.
Feasibility & Cost Analysis
We help you assess project feasibility from a funding perspective, reviewing construction costs, expected end values, and profit margins to ensure your development stacks up financially before committing to lending.
Progress Payment Management
We manage the staged drawdown process throughout your build, coordinating with your quantity surveyor, builder, and lender to ensure funds are released on time at each construction milestone.
End-to-End Project Support
From initial land purchase finance through to completion and exit strategy, we support your development at every stage. Whether you plan to sell, retain, or refinance completed units, we ensure your lending aligns with your project goals.
How It Works
Project Assessment
We review your development plans, feasibility study, and project costs to understand the full funding requirement.
Lender Matching
We identify the best-fit lenders for your project type and size, comparing terms across development finance specialists.
Application & Approval
We prepare and submit a comprehensive application, managing all lender requirements and conditions.
Drawdown Management
We coordinate progress payments and staged drawdowns throughout the build, liaising with your QS and builder.
Project Completion
We help you transition to standard lending or arrange sales finance as the project completes.
Property Development Finance Guide
Key knowledge for financing your property development projects in New Zealand.
How Development Finance Works
Property development finance is structured differently from standard home loans. Instead of receiving the full loan amount upfront, funds are drawn down in stages as the development progresses. This staged approach reduces the lender's risk and means you only pay interest on the funds actually drawn.
A typical development loan covers the land purchase cost, construction costs, professional fees (architect, engineer, quantity surveyor), and a contingency buffer. The lender will assess the project's feasibility, including expected end values and your experience as a developer, before approving the facility.
Interest rates on development finance are generally higher than standard home loan rates, reflecting the higher risk involved. However, the overall cost can be managed effectively with proper planning and efficient project execution. We help you structure the finance to minimise holding costs and maximise your return on the project.
Types of Development Projects We Finance
We help secure funding across a range of residential development projects in New Zealand, from simple subdivisions to larger multi-unit builds. Common project types include land subdivision (splitting an existing section into two or more lots), building new homes on subdivided land, townhouse and duplex developments, and small to medium apartment projects.
Each project type has different funding requirements and lender criteria. A simple subdivision may only require land purchase and consent costs, while a multi-unit development requires full construction funding with progress payments. We match your project to the right lender and funding structure for the best terms and most efficient drawdown process.
Pre-Sales and Off-the-Plan Lending
For larger developments, lenders often require a certain level of pre-sales before releasing construction funding. Pre-sales provide the lender with confidence that the completed units will sell, reducing their risk exposure. The pre-sale requirement varies by lender and project size, but typically ranges from 50-100% of the total development.
We help you navigate the pre-sale process, including connecting you with lenders who have more flexible pre-sale requirements or who will consider projects with fewer pre-sales based on strong feasibility and developer experience. We can also help arrange buyer finance for your off-the-plan purchasers, creating a seamless end-to-end solution.
Have a Development Project in Mind?
Book a free consultation and we will assess your project feasibility, funding options, and the best lending structure for your development.
Our Lending Partners
We compare rates across New Zealand's leading banks and lenders to find the best deal for you.
What Our Clients Say
"Grace was fantastic to work with! Professional, knowledgeable, and always available to answer questions. They made the entire process smooth and stress-free. Highly recommend!"
Alan
Google Review
"Grace at Sunshine Mortgages is an excellent mortgage broker who is very experienced, informative, and patient. She supported us all the way from pre-approval to finalising the mortgage. She is very hard working and truly appreciate the extra push at the critical moments! Highly recommend her services."
Henry & Dotty
Google Review
"Excellent professionalism! We would highly recommend Grace to anyone who is seeking advice on mortgage applications."
Zoe Jiang
Google Review
"Highly recommend Grace Zhang – an outstanding mortgage broker! Grace guided us through our first home purchase. Her expert advice, patience, and clear communication made the process so much easier for us as first home buyers. Grace helped us find the best mortgage options and was always available to answer our questions. She truly made our home buying experience smooth and stress-free!"
Jin Tingting
Google Review
"Grace is a patient and professional broker. We got pre-approval from the bank within two weeks. Thanks to her professional advice, everything went very smoothly. She answers our questions 24/7!"
Guan Meiling
Google Review
"Grace was fantastic to work with! Professional, knowledgeable, and always available to answer questions. They made the entire process smooth and stress-free. Highly recommend!"
Alan
Google Review
"Grace at Sunshine Mortgages is an excellent mortgage broker who is very experienced, informative, and patient. She supported us all the way from pre-approval to finalising the mortgage. She is very hard working and truly appreciate the extra push at the critical moments! Highly recommend her services."
Henry & Dotty
Google Review
"Excellent professionalism! We would highly recommend Grace to anyone who is seeking advice on mortgage applications."
Zoe Jiang
Google Review
"Highly recommend Grace Zhang – an outstanding mortgage broker! Grace guided us through our first home purchase. Her expert advice, patience, and clear communication made the process so much easier for us as first home buyers. Grace helped us find the best mortgage options and was always available to answer our questions. She truly made our home buying experience smooth and stress-free!"
Jin Tingting
Google Review
"Grace is a patient and professional broker. We got pre-approval from the bank within two weeks. Thanks to her professional advice, everything went very smoothly. She answers our questions 24/7!"
Guan Meiling
Google Review
"Grace is a patient and professional broker. We got pre-approval from the bank within two weeks. Thanks to her professional advice, everything went very smoothly. She answers our questions 24/7!"
Guan Meiling
Google Review
"Highly recommend Grace Zhang – an outstanding mortgage broker! Grace guided us through our first home purchase. Her expert advice, patience, and clear communication made the process so much easier for us as first home buyers. Grace helped us find the best mortgage options and was always available to answer our questions. She truly made our home buying experience smooth and stress-free!"
Jin Tingting
Google Review
"Excellent professionalism! We would highly recommend Grace to anyone who is seeking advice on mortgage applications."
Zoe Jiang
Google Review
"Grace at Sunshine Mortgages is an excellent mortgage broker who is very experienced, informative, and patient. She supported us all the way from pre-approval to finalising the mortgage. She is very hard working and truly appreciate the extra push at the critical moments! Highly recommend her services."
Henry & Dotty
Google Review
"Grace was fantastic to work with! Professional, knowledgeable, and always available to answer questions. They made the entire process smooth and stress-free. Highly recommend!"
Alan
Google Review
"Grace is a patient and professional broker. We got pre-approval from the bank within two weeks. Thanks to her professional advice, everything went very smoothly. She answers our questions 24/7!"
Guan Meiling
Google Review
"Highly recommend Grace Zhang – an outstanding mortgage broker! Grace guided us through our first home purchase. Her expert advice, patience, and clear communication made the process so much easier for us as first home buyers. Grace helped us find the best mortgage options and was always available to answer our questions. She truly made our home buying experience smooth and stress-free!"
Jin Tingting
Google Review
"Excellent professionalism! We would highly recommend Grace to anyone who is seeking advice on mortgage applications."
Zoe Jiang
Google Review
"Grace at Sunshine Mortgages is an excellent mortgage broker who is very experienced, informative, and patient. She supported us all the way from pre-approval to finalising the mortgage. She is very hard working and truly appreciate the extra push at the critical moments! Highly recommend her services."
Henry & Dotty
Google Review
"Grace was fantastic to work with! Professional, knowledgeable, and always available to answer questions. They made the entire process smooth and stress-free. Highly recommend!"
Alan
Google Review
Frequently Asked Questions
What deposit do I need for a property development loan?
How are development loan drawdowns managed?
Can I get development finance if I am a first-time developer?
What types of development projects do you finance?
Do you charge for development lending advice?
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Book a free consultation and we will assess your situation and recommend the best path forward.