Need funding for a partially completed construction project? We can help!

04/08/2025

How to get around road blocks when you need some extra funding to complete your project.

If you're a property developer, or a mortgage broker working with one, you’ve likely experienced just how hard it can be to secure a construction completion loan in Australia.

Whether it’s a self-funded project and the budget ran out midway through, or the builder went into administration, or if a developer was looking to buy an incomplete property (with the intention of flipping it for profit), getting funding for these scenarios can be exceptionally difficult.

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Incomplete Project Banks have tightened their lending criteria significantly over the past few years, and developers are increasingly struggling to get the green light, particularly when a project is already underway and needs further funding to reach completion.

Why Traditional Construction Loans Are So Hard to Get

One of the biggest hurdles developers face is that traditional lenders avoid mid-construction loans. Banks tend to see incomplete builds as high-risk, especially if the project has already hit delays or budget overruns. Unfortunately, this risk-averse stance leaves many developers in a tough position—they can’t complete the build without funding, but they can’t get funding because the build isn’t complete.

Another common no-go for banks is when a developer switches builders partway through a project. With many construction companies facing challenging conditions in recent years, a number have gone into receivership. If a builder collapses mid-project, it can create serious complications for the developer, especially when it comes to securing the finance needed to complete the build. In many cases, banks are reluctant to continue funding under these circumstances.

It’s a frustrating catch-22 that can stall a project indefinitely, eat into profit margins, and cause reputational damage.

When the Banks Say No, Private Mortgages Australia Can Step In

The good news? Bank rejection isn’t the end of the road. Private Mortgages Australia (PMA) can offer a flexible, fast alternative for developers who need to keep their projects moving. Construction completion finance is one of the areas that PMA excels at. Here’s a case study of a recent construction completion loan that we arranged for a borrower when his builder walked away after a dispute and the major bank withdrew funding:

Access the full case study on how a business owner renovated and expanded a child care centre in Dandenong with help from PMA when the banks said “No”.

Benefits of No-Doc Construction Loans from PMA

Unlike banks, PMA doesn’t rely solely on serviceability or income documentation to approve a loan. Instead, we at PMA assess each loan based on the developer’s exit strategy, typically the sale of the completed property.

This approach opens the door to no-doc construction loans that are tailored to the specific needs of the borrower.

Fast approval Choosing PMA for construction finance offers several key advantages:

Fast approval and funding - No mountains of paperwork or long wait times.
Low-doc or no-doc loans - Ideal for borrowers who can’t meet the strict documentation requirements of banks.
Flexible terms - Loans are designed around the project’s timeline and the exit strategy.
Capitalised interest - Interest can be capitalised into the loan to suit project cashflow
Short-term structure - Developers aren’t tied down by long-term debt. Repayment is typically scheduled after the project is completed and sold.

This tailored approach gives developers the breathing room they need to finish construction and move on to their next project.