Completion Finance

Why use PMA to finance the completion of your client’s construction:

  • They’re developing a project and had a cost overrun
  • They’re constructing up to four residential units or lots with a loan amount of up to $2M
  • They’re looking for a loan secured by a Second Mortgage that has a First Mortgage provided by a traditional lender

Construction Completion Finance Loan Terms

Loan Amount

Up to $2M


Up to 65% of the ‘as if complete’ value (max. LVR of 65% for major metro residential property, other security at lower LVRs)


2nd Mortgage (First Mortgage provided by a prime ‘traditional lender’ e.g. a bank)


Tailored to construction program

Construction Completion Finance

Has your client’s construction project been put on hold due to a lack of funds? Construction and construction completion loans are two types of loans that many banks and institutions are not financing right now. However, Private Mortgages Australia specialises in this particular type of finance to allow developers to get their construction projects over the line.

Construction completion finance is frequently used by property developers who do not want to bring in a funding partner and want to preserve their own equity for use elsewhere, such as capitalising on new opportunities as they arise.

Construction completion finance can often result in the full funding of the equity required to complete the project, the soft costs of the project, and any ongoing charges and taxes payable during the course of construction. Many successful property developers use construction completion finance once their projects have de-risked with DA and pre-sales achieved. They do this to settle the land, finalise design and approvals, fund sales and marketing costs to achieve pre-sales.

The benefits of construction completion finance include:

  • Bring your project to market sooner
  • Lower the amount of pre-sales required
  • Precious cash is free to drive the rest of the developer’s pipeline
  • You can actually decrease portfolio risk by increasing diversification and increasing your liquidity

CASE STUDY: Residential Development Site Purchase

The Borrowers have backgrounds in construction and are qualified quantity surveyors and building estimators with over 12 years’ experience.

The purpose of this loan is to complete the purchase of a residential development site of 7.89 hectares and complete a subdivision in Mooreville, Tasmania.

The Borrowers can’t get bank finance as their latest financials are unable to satisfy traditional lenders’ servicing requirements.

Security on offer is the residential development site in Mooreville, a hamlet situated near Shorewell Park and Downlands, Tasmania. The property will be subdivided, developed and then sold.

The exit strategy is to refinance out to construction finance.


Security Property Valuation: $950,000

Loan Amount: $522,500 (First Mortgage)

LVR: 55.00%

Interest Rate: 8.65% p.a.+ 2.20% p.a. management fee.

Term: 6 months prepaid plus 6 monthly extensions 


Residential Development Site Purchase

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Lending Process


Complete our
Quick App Form


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and we'll gladly answer any questions you may have.


After receiving the Application we’ll develop an Indicative Letter of Offer which includes an indicative interest rate.

Once the Offer is accepted a small assessment fee is charged to cover the searches we do in due diligence.


Once we’ve completed our due diligence, we’ll send a formal Letter of Offer. Once signed the loan documents are drawn up and sent to the Borrower’s solicitor.


Upon return of the fully executed documents the approval fee, legal costs and prepaid interest are deducted from the loan and the balance is paid to the Borrower.

Referrer fees are paid within 24 hours from settlement with no clawbacks.

We endeavor to make this process as quick as possible and can settle within 5 days upon receipt of all outstanding information.

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