Residual Stock Loans for Australian Property Developers
Unlock equity from completed but unsold stock and free up capital to move onto your next project faster.
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Funding from $250k
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Short 3 – 36 month terms
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First or second mortgage options
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Refinance unsold residential or commercial stock
Do you have a scenario you want to discuss now?
We’ll respond in 4 business hours.
What is a Residual Stock Loan?
A residual stock loan is a short to medium-term financing solution designed for property developers who have completed construction but still hold unsold stock.
Instead of relying on a traditional bank refinance, this type of loan allows you to:
- Refinance completed dwellings or units
- Repay your construction or development facility
- Unlock equity tied up in your project
- Continue selling stock under more flexible conditions
Residual stock finance is commonly used when:
- Presale targets have not been fully achieved
- Market conditions have slowed sales velocity
- Developers want to hold stock but need time to obtain tenancies, etc.
When Should You Use a Residual Stock Loan?
This solution is ideal when:
- Your construction loan is nearing expiry and needs refinancing
- You have completed stock but not all units have been sold
- You want to improve cash flow while selling down inventory
- You need to release equity to fund your next development
- You are looking to avoid forced sales at discounted prices
- Traditional lenders cannot provide a refinance solution
Residual stock loans give you the flexibility to control your exit strategy while maintaining financial momentum.
Key Benefits of Residual Stock Finance
Unlock Equity from Completed Projects
Access capital tied up in unsold stock and reinvest into your next opportunity.
Maintain Control Over Sales Strategy
Sell down stock at the right time instead of being forced by lender deadlines.
Improve Cash Flow
Reduce financial pressure while continuing to generate sales revenue.
Recycle Capital into New Projects
Use freed-up equity to fund land acquisition or new developments.
Flexible Lending Criteria
Assessment based on the asset, not strict income servicing.
Why Business Owners Choose Private Mortgages Australia
Fast settlements
Flexible terms
(3–36 months)
Up to 75% LVR
Up to $5 Million
Response time of
4
business hours
10+ years of private
lending expertise
How it works
Submit a scenario via the Quick-App form
Receive Indicative Offer
Formal Offer & Settlement (within 5 days)
We have a guaranteed response time of 4 business hours after receiving your Quick-App. 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.
Brokers & Referrers: Earn Fees on Successful Deals
If you’re a broker or a referrer you can earn generous referrer fees when you introduce qualified borrowers.
Referrer fees paid within 24 hours of settlement - no clawbacks!
Your commission is guaranteed.
Transparent process and communication throughout.
If you have a client in need of finance, get in touch to find out how we can help and what you could earn by referring the scenario to us.
Case Study: Development Funding Gap at Completion
Scenario
A developer completed a project but still had a portion of stock unsold. Their construction loan was coming due, and they needed to refinance while continuing to sell down the remaining units.
Why PMA
Traditional lenders were unwilling to assist due to:
- Insufficient presales at completion
- Tight refinancing timelines
- Standard servicing requirements not being met
The developer required a fast, asset-backed solution that recognised the value of the completed development rather than relying on income servicing.
Solution
Private Mortgages Australia structured a residual stock loan secured against the completed dwellings, allowing the developer to:
- Refinance the construction facility
- Unlock equity from the completed stock
- Continue selling units without pressure
- Stabilise cash flow while holding inventory
- Move forward with new development opportunities
The loan was settled quickly, enabling the borrower to meet obligations and retain control over their sales strategy.
Do you have a scenario you want to discuss now?
We’ll respond in 4 business hours.
Client Success Stories & Testimonials
★ ★ ★ ★ ★
Thank you once again for your support in helping our client achieve their financial needs. On behalf of myself and staff we deeply appreciate how this matter was handled, we received lots of dedication and support. We would definitely refer more business as we are sure that clients will be looked after....
Francesca G - Mortgage Broker, Sydney
2016-10-31 04:54:40
★ ★ ★ ★ ★
I have found Private Mortgages Australia to have a high standard of skill, care and integrity. Their unique lending products can assist clients in many useful ways. Used the right way PMA is an efficient tool which can enhance clients' financial strength....
Janette T - Mortgage Broker, Melbourne
2017-01-04 05:55:42
★ ★ ★ ★ ★
PMA have recently assisted our client in purchasing an investment property in South Bank, VIC Australia. This was the first time we had facilitated a loan for a client based in New Zealand purchasing in Australia. The team at PMA were very accommodating with their time and expertise and we would have no hesitation in using their services again in the future....
Kim Lyons - South Bank, VIC
2019-07-03 06:43:07
★ ★ ★ ★ ★
We appreciate all the efforts, in difficult and challenging circumstances. Your professional approach and ability to get the deal done has been much appreciated by all....
Simone - Gold Coast
2019-04-05 05:30:51
Have more questions?
Book a call with one of our Relationship Managers and they can further explain the lending process and how the referral fee structure works.
Meet the team
Dushen Tissera
Dushen has a holistic understanding of the credit process from start to finish and is able to ensure that our loans are all in line with the customers and investors requirements.
Phone: 0477 509 779
Brendan Barry-Murphy
With a remarkable career spanning over 30 years at the Commonwealth Bank of Australia and experience as a mortgage broker, Brendan brings a wealth of knowledge and an insider’s perspective on what brokers and clients need most.
Phone: 0427 981 081
Our Relationship Managers will walk both brokers and borrowers through the entire process, from initial application to settlement.
