What this page covers, and what it doesn't
Equity Tap doesn't provide construction loans with progress draws. What we do is short-term secured lending for the moments around a development where speed matters: buying a site, meeting a settlement date, paying a deposit, covering holding costs while approvals come through, and releasing cash from completed but unsold stock. These are the points where developers most often lose money or deals because their usual financier is too slow.
Where developers get caught
A good site comes up, the vendor wants a short settlement, and the development financier wants a full feasibility, valuation and credit process before it will commit. A deposit is due on exchange but your equity is tied up in the last project. Council approval takes longer than planned and the holding costs keep coming. The project is finished but three units haven't sold, the construction lender wants out, and you need the cash for the next site.
Common developer timing problems
- Short settlement periods on sites and off-market deals
- Deposits due on exchange while equity is tied up elsewhere
- Holding costs during DA, rezoning or subdivision approvals
- Construction lender requiring repayment of a facility at expiry
- Residual stock that hasn't sold but has strong equity
- Funding contributions, consultant fees and approvals costs
Developer scenarios
| Scenario | How we help | Exit |
|---|---|---|
| Off-market site with a short settlement | Funds the settlement against the site and other property | Development finance or bank refinance |
| Deposit due on exchange, equity tied up in completed stock | Releases equity from completed stock to pay the deposit | Sale of the completed units |
| Construction facility expiring with unsold units | Refinances the residual stock | Sale of the residual units |
| Site held while DA is assessed | Covers holding costs and consultant fees | Sale of the approved site or development finance |
| Subdivision with lots due to register | Funds titling costs and contributions | Settlement of lot sales |
| Developer buying out a joint venture partner | Funds the buy-out | Refinance or sale of the project |
These scenarios are examples only. Each loan is assessed on its own facts.
Why mainstream development finance is slow here
Banks and development financiers are set up for the construction phase, with feasibility studies, presales, quantity surveyors and valuations. That process makes sense for a construction facility, but it's far too slow for a two-week site settlement or a deposit due tomorrow. A bank refinance commonly takes up to three months or more, and residual stock loans from banks can be hard to get once the project is finished.
How Equity Tap lends to developers
We lend $50k to $5m for one to twelve months, secured by a first mortgage, second mortgage or caveat over residential or commercial property anywhere in Australia. Security can be the site being bought, completed stock, your home or other property in your portfolio.
We don't order a valuation before approval, and we don't need tax returns, BAS or financial statements for a property-secured loan. We need ID, property and mortgage details, the purpose and a clear exit, such as a sale contract, a development finance offer or a marketing plan for the stock.
Interest for up to the first six months can be prepaid or added to the loan, so there are no scheduled payments while approvals come through or the stock is marketed. Interest is not waived, and the full cost is shown before you proceed. For tight dates, see urgent property settlement loans.
Exits developers typically use
- Sale of completed or residual units
- Development or construction finance once approvals are in place
- Sale of the site with approval
- Settlement of lot sales in a subdivision
- Bank refinance of retained stock
Our business loan LVR guide explains how the amount relates to the security.
What we need from a developer
ID for the borrowers and guarantors, the addresses of the security properties, details of existing mortgages or facilities, the purpose and the exit. A contract of sale for the site, a sales agent's campaign plan for residual stock, a development finance offer or a list of exchanged contracts all help. We don't need a feasibility study or financial statements to give you an answer.
How it runs
Call with the address, the existing debt, the amount and the date. Conditional approval can often be given on the phone, with a term sheet in about 30 minutes once we have the scenario. There's no credit committee, so the person you speak to is often the decision maker. Eligible loans can settle in as little as 24 hours.
Broker note
Developer clients usually need us before or after their main financier, not instead of it. Send the scenario through the broker page. A fast indicative answer helps you secure the site or protect the client's stock while the long-term funding is arranged.
Also see builders and construction and business bridging loans. Apply online or call 1300 123 024.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
Do you provide construction loans?
Can you settle a site purchase quickly?
Can I borrow against unsold units?
My construction loan is expiring. Can you refinance it?
Do you need a feasibility study?
Do you order a valuation?
Can I use other properties as extra security?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.