Property Development Loan

Are you a real estate developer with a vision to transform properties into thriving, vibrant spaces? Or are you an aspiring property developer looking to embark on your first project? At Yoda Capital Finance, we are your steadfast financial ally, specialising in property development loans designed to bring your real estate projects to life. Let’s explore how our expertise can make your property development dreams a reality.

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What makes our property development loans different?

Yoda Capital Finance understands the unique needs of property development finance and can structure your facility to ensure minimal risk. We have the skill set to analyse and finance transactions from $1m to $500m+.

Residual Stock Finance Options
Flexible Security Options
Flexible Repayment Options
Fixed Rates from 8.00% p.a.
Up to 5-year terms available
No Monthly Service Fees

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Easy to understand features, variables & fees

Features

Maximum LVR	up to 80%
Maximum Loan Amount	Negotiable
Minimum Loan Amount	$1,000,000
Interest Only	Available
Simple Monthly Repayments	Deferred options available
Maximum Loan Term	up to 5 years
Residual Stock Loans
Competitive Fixed Interest Rates	from 8% p.a.

Feesˆ

Application Fee	from $15,000ˆˆˆ
Establishment & Origination Fee	from 5.65% ^†
Monthly Service Fee	Nil
Valuation Fee	Variable^ø
Settlement Fee	Nil
Documentation Fee	Nil
No Early Termination Fees
No Other Hidden Feesˆˆ

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Important things you should know

Ready to begin your application?

Yoda Capital Finance is here to support you where ever you are in your entrepreneurial journey.
Schedule a meeting or chat with one of our managers today.

Meet with a Manager

If you’re ready to get your application started or want more information, please schedule a meeting with one of our Finance Managers.

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Complete our short guided quote form, and we will send you a quote within 24 hours. If you’re not ready to receive a quote, get in touch with us.

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Frequently Asked Questions

You have a question? We have an answer.

What is a property development loan?

A property development loan is a specialised financial product designed to provide funding for acquiring, developing, or constructing real estate projects, such as residential, commercial, or mixed-use developments. We can finance various greenfield commercial projects in a vast array of industries. Schedule a meeting with us to determine if your project is eligible.

How do property development loans differ from traditional mortgage loans?

Property development loans are distinct from mortgage loans because they are specifically designed for real estate development projects, including land acquisition, construction, and development, rather than for property purchases. Thes loans typically include a fixed interest rate plus a line fee.

How long does it take to get funding?

This varies based on several factors, but funds are generally available in 30-60 days. We then manage drawdowns based on an agreed tranche schedule.

Is there a minimum or maximum amount?

Yes. We normally won’t consider funding anything less than $1m for this facility and have the capability to provide $5bn+ facilities to approved applicants and projects.

What types of property development projects can be financed with these loans?

Property development loans can be used for a wide range of projects, including residential housing developments, commercial complexes, retail spaces, industrial parks, and more.

Are property development loans secured by collateral, and if so, what types of collateral are accepted?

Yes, these loans are typically secured by the property being developed. Lenders may also require additional collateral or personal guarantees depending on the terms and risk factors.

What is the typical loan-to-value (LTV) ratio for property development loans?

LTV ratios can vary but generally range from 50% to 80%, depending on the lender and the nature of the development project.

How do lenders evaluate the feasibility of a property development project for loan approval?

Lenders assess the project’s potential profitability, the developer’s experience and qualifications, the location and market demand, and the project’s financial projections. Some Lenders will require a certain level of pre-sales to release further funding.

What is the typical loan term for property development loans?

Loan terms can range from one to five years or more, depending on the complexity of the project and the lender’s policies.

What happens if a property development project faces delays or unforeseen challenges?

Delays and challenges can be addressed through discussions with the lender, possibly resulting in modified terms or additional funding to complete the project.

Can individual investors or smaller development companies access property development loans, or are they primarily for larger firms?

Property development loans are available to a wide range of developers, from individual investors to larger development companies. Eligibility depends on factors such as the project’s feasibility, the developer’s experience, and the lender’s policies.

Other loans that may interest you:

Commercial Loan

Fixed Interest Rates from 7.25%

Loans up to $100m**
Flexible Security Options
Up to 10-Year Terms
Flexible Repayment Options
No Early Termination / Exit Fees

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Commercial Property Loan

Fixed Interest Rates from 7.25%

Loans up to $500m+**
Up to 80% LVR
Up to 30-Year Terms
Flexible Repayment Options
No Early Termination / Exit Fees

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Invoice Finance

Fixed Interest Rates from 6.55%

Loans up to $100m+**
Enhance Business Cashflow
Revolving and Extendable
Complete Invoice Factoring Service
Reduce Credit Risk

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Equipment Finance

Fixed Interest Rates from 6.85%

Loans from $20k
Flexible Security Options
Up to 7-Year Terms
Flexible Repayment Options
Fund New and Used Equipment

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Important Information – The things you should know

ˆPayment default fees and other collections fees are not included in the table and are available upon request and in the loan agreement

^* The application fee is non-refundable and payable upon application.

† The establishment and origination fee covers all administrative loan fees (excluding default and payment collection fees).

†† The line fee of 1.5% applies to any unutilised funds.

∆ As part of our lending criteria, we require a 25% Surety Bond. This converts to an Intrest Control Account (ICA) Advance and is held by us as security over your loan. Any unused ICA is deducted from the principal when the loan is paid in full.

ˆˆOther than default interest fees, arrears collection fees, direct debit fees, and card transaction fees, this product has no hidden fees.

**Yoda Capital Finance can fund substantial loans, and we can be very flexible with the maximum for approved borrowers.

Do you want to know more or need a consultation?

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