Townhouse and duplex property development loans

Ardent Capital Group brings the same method to every client: execution and strategy, clear advice for smart lending, and long-term growth. That means the right lender, structure and timing, straight advice so you borrow with confidence, and today's deal built toward where you want to be tomorrow. On small developments the presale question decides the timetable, and the answer is not the same at every lender. We know which ones fund four townhouses with nothing sold, so you find that out before you commit to a sales campaign.

Often not, and it is the most useful thing to establish early at this scale. On duplexes and projects of around four dwellings or fewer, many lenders require no presales at all. Above that the expectation varies widely by lender and by location rather than following one rule, which is why the answer for your project is worth confirming before you plan around it.

It is sized against the gross realisable value of the finished dwellings, net of GST, and against the total cost to build them. Lenders write to a share of each and lend the lesser of the two. Major banks reach up to 65% of gross realisable value and non-bank lenders up to 70%, against up to 80% and 85% of total development cost respectively.

Yes. A first project with an approval, a fixed price contract and a builder the lender is comfortable with is a fundable file. What carries it is the strength of the builder and the feasibility rather than your own development history, and that is a large part of why small projects go to the non-bank panel rather than to a bank development team.

For development funding you need a licensed builder on a fixed price contract. That contract is what gives the lender certainty about the cost to complete, and it is also what the quantity surveyor reports against. Owner building sits outside what development lenders will fund at this scale.

Simply the number of dwellings on the site, being two, three and four respectively. Villas, terraces and townhouses describe the built form rather than the count. Lenders care about the number of dwellings and the total cost far more than the label, because those are what drive the presale expectation and the facility size.

Yes. Where the site is approved or shovel ready, the purchase and construction can sit under one facility with one valuation and no refinance in between. Where the site has no approval yet, the land is usually funded first and the construction facility follows once consent is granted.

Usually not. Interest during construction is normally capitalised, meaning it is added to the facility rather than paid monthly, because the project produces no income while it is being built. That is standard on development facilities and it is one of the differences from a standard home loan.

That is a normal end of project position and there is a facility for it. Once the dwellings are complete and titled, the remaining stock moves onto a residual stock facility, which repays the construction lender and holds the balance while it sells. Planning that step early keeps you from having to discount to a deadline.

Yes, and plenty of clients do, particularly on dual key and villa projects built for yield. The construction funding is much the same, but the exit is a refinance onto a term facility rather than a sales campaign, so the lender tests the rental income at the start rather than at the end. Tell us that is the plan early, because it changes which lender suits.

Enough that the project still works if costs move, which is the real point of the test. What matters as much as the headline margin is the contingency behind it and whether the build contract is genuinely fixed price. Send us your feasibility and we will tell you how it will read to the panel.

Commonly 12 to 24 months, set against the build programme plus a realistic allowance for subdivision, registration and the sales campaign. Setting the term too tight is a common error, so build the selling period into the term rather than rely on an extension later.

The development approval and construction certificate, the fixed price building contract, your feasibility, the contract of sale or title for the site, a quantity surveyor report where one exists, and details of your builder. We can give you an indicative position from the approval and the feasibility alone.

Most of the time, no. Where a project requires significant preparation due to its complexity, a small mandate fee may apply, and we will always be upfront about this before any work begins.

Although we are based in Sydney, we service clients across all major Australian cities, including Melbourne, Perth, Brisbane, the Gold Coast, Adelaide, Canberra and Hobart, along with their surrounding regional areas. Wherever your project is located, we can arrange your finance.

Although our main speciality is property loans for business owners, we also assist with asset finance and working capital. On asset finance, that covers the plant and vehicles a building business runs, from excavators and scaffolding to site utilities and work vehicles. On working capital, we arrange business overdrafts, lines of credit and cash-flow funding to carry a project between drawdowns, to cover holding costs, and to pay consultants ahead of the next site.

Yes. That is our core ethos, helping you understand the right strategy, structure and clear advice from the very first conversation. Our main borrower profiles are developers and commercial property owners seeking finance from $50,000 upwards, and a duplex or small townhouse project is the most common first development there is, so it is well within our wheelhouse. We will walk you through what your feasibility needs to show, whether presales are required for your project and what you genuinely need to contribute, before you commit to anything.

No. Arranging finance and advising on financial products are two different disciplines, and we do the first. What we bring is the credit analysis lenders require, the structuring of the facility, and the strategy for putting your application in front of lenders whose appetite matches it.

Because we act as a credit representative under an Australian Credit Licence, we do not give financial product, superannuation, taxation or legal advice, and nothing we provide should be taken as such. Where your circumstances need that input, we are happy to work with your accountant, financial adviser and solicitor to understand the full picture before anything is submitted.

The information on this page is general in nature and does not take account of your objectives, financial situation or needs.