Property Development Loans

Construction and Development Loans

Mortgage One can arrange development finance throughout Australia for the following industries:

  • Retail Properties & Shopping Centers
  • Industrial Properties & Complexes
  • Commercial Properties & Business Parks
  • Healthcare orientated property

Mortgage One has access to an extensive network of Banks, Non Bank Financial Institutions and Private Lenders to help you find a better financial solution for you and your business.

Mortgage One can arrange take-out finance upon completion of the development.

  Senior Debt Mezzanine
Lending Value Ratio    
- Project Hard Costs 70% – 85% 85% - 100%
- Gross Realisation 60% - 65% 65% - 80%

Interest Rates and Fees

Commercial mortgage interest rates are quoted in various formats by different lenders within the market making it difficult to accurately compare rates from various lending institutions.

Common practice is to use a base indicator in the form of a swap rate based on the term of the loan.

Alternatively, interest rates may be advised as being quoted using the Lender's 'Cost of Funds' or ‘Bill Rate' which will include Treasury Margin to compensate their Treasury Department for procuring the funds from the wholesale market. An applicable risk margin is then added to provide a final interest rate.

Some lenders may also charge a Line Fee in addition to any risk margin, regardless of the outstanding loan balance.

Hence it is very important when comparing rates that you are aware of the base indicator rate, applicable risk margin and all the fees that may be levied on the loan i.e. Line Fee, Rollover Fee etc, to correctly assess the true cost of the loan.

Construction & Development loans can be costly to establish as there are a number of professional services that are utilised during the approval process.

  • Solicitor 
  • Finance Broker 
  • Property Valuer 
  • Quantity Surveyor

Contact Us for more information and to discuss the most suitable loan for your unique situation.

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