Construction Lending Parameters

First Mortgage 8.5% – 9.5% per annum range limited up to 65% stand alone.

Secondary Mortgages to make up the balance of capital to 75%. Typically when above 70% additional security is required in many cases unless >50% sold then case by case  

Equity investments – Property Development only (residential).

Interest rates quoted on a per annum basis drawn from construction funds (*plus loan management costs typically 0.15% per month of the gross loan covering quantity surveyor reports, internal management such as site meetings and the like).

Minimum Construction Loan size $2.000m (we will consider a smaller facility).

Maximum Construction Loan size $20.000m (for larger loans on case by case basis – click here to see contact page).

Competitive fees, monthly project and loan reporting, ongoing onsite inspections for investors.

Pre-sale flexibility, assessed based on area demand, product type, borrower balance sheet strength, product demand and business plan.

We are asset based lenders, not cash flow lenders. Banks rely on cash flow, serviceability & pre-sales to cover their debt are competitive with interest rates and costs. As a result their margins do not allow their Managers for fortnightly and monthly onsite meetings, ongoing consultations, sales meetings and related reporting on smaller loans under $10m for example. At ACMF we rely on the underlying asset values being created, onsite visits related meetings and reporting is imperative to assessing forward analysis. Items such as area demand for the product being developed, general project competitiveness, quality of the product for example, in the event of over supply (higher spec product will always sell faster in such times) together with the borrowers business plan and individual guarantors balance sheet strength and pre sale achievement explains why we may go to 75% + on some loans or restrict others to 70% or lower on others.

In the post GFC era, lower lending LVR’s and strict Bank credit policies now require a new strategy along with recent trends to achieve 120% of debt cover and 30% project capital requirement (30% of Total Development Costs "TDC") a typical "LVR" is now 50%-55% range with a Bank. ACMF provides a solution to fund your property development without the strict Bank credit criteria, based on a sensible business plan, product type, demand, repayment method, guarantor capacity and general project profitability. Whilst typically a non bank is 20%-30% higher funding costs, a developer can usually have 2 developments at various stages with the same capital, thereby rotating their capital much faster, starting their next development earlier allowing a greater PA / ROI on their equity, something few developers calculate. ACMF Project Advisory service can carry out this analysis for developers highlighting the significant difference.

At ACMF, when there is a good profitable deal, we look for the solution.  We take an active role during the project such as management meetings, general analysis and forward strategy solutions.

It’s pointless having the cheapest rate with strict requirements but not enough capital to meet the construction budget & even worse - require additional capital during construction due to unforeseen circumstances. We have strong relationships with our investors which allows us to combine our funds to provide a complete finance package. This is why we have succeeded in funding difficult loans having a quality project proposal.

Whats our point of difference? We often place our funds into a deal, leave our fees to be paid at the end and/or add a top up facility to round down an LVR to satisfy a first or second mortgagee to get the job done until completion. That’s our point of difference.

Put simply we provide the top up required to facilitate a shortfall to get your project started or finance settled!