FINANCE FOR CONSTRUCTION/DEVELOPMENT CLIENTS
Land/Property FinanceWhy use PMA to finance your client’s land or property purchase:
- They’re a property developer seeking funds to purchase a development site
- They can’t showcase serviceability but the project is feasible
- They need land-only finance, with current or future plans for construction financing
- They don’t have 100% debt coverage with presales
Land/Property Finance Loan Terms
Up to $5M (1st Mortgages) and $2M (2nd Mortgages)
Up to 65% of the ‘as is’ value for land, or up to 75% with inhabitable improvements (max. LVR for major metro residential property, other security at lower LVRs)
3-12 months + Extensions
Land and Property Finance
If your property developer client is seeking funds to purchase a development site, then Private Mortgage Australia is the lender for you. Mainstream banks and lenders are often reluctant to get involved in land acquisition funding, however, private lenders like PMA will look at the bigger picture. If the property developer is able to secure the loan with the property then a short-term private loan is usually a good option.
Banks and other traditional lenders typically rely heavily on the feasibility of the proposed development and will usually require 100% of debt cover in pre-sales. Because the ability to repay a development loan depends upon the successful sale of the lots, a lender must be satisfied a developer will be able to sell enough units prior to development funding being made available. However, private lenders don’t usually require 100% debt coverage in order to consider a loan.