Construction Lending Parameters

First Mortgage Interest rates equivalent to 8.0% on usage limited up to 65% stand alone based on monthly drawn amounts is circa 6.0% pa based on being fully drawn on a 1 year project.

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).

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 via serviceability. We rely on the underlying asset values being created, project team skills, ability to sell down when completed and profitability. Investor reporting onsite visits area demand for the product being developed, general project competitiveness, quality of the product for example.

When there is a good profitable project, we look for the solution and try hard to make it work many times risking our own capital when we believe in a strong profitable project. 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. 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.


Asset lending based on asset values / product demand / borrowers business / repayment plan. All funding is subject to the availability of funds at that time. When Loan Offers are issued, they have a cut off time frame for acceptance to secure funding.