5.0 from 220 Reviews
Property development is one of the most exciting things you can do with capital. It is also one of the most complex ways to borrow money. Development finance sits in a different category to a standard home loan, and the lenders who offer it think differently, assess differently, and price differently. Knowing how it all works before you approach a lender is half the battle.
At Zella Money, we work with property developers at every stage, from first-time developers taking on a small subdivision to experienced operators running multi-stage projects. We access loan options from banks and lenders across Australia, which means we can find a structure that actually fits your project rather than squeezing your project into whatever a single lender happens to offer.
What development finance actually is
A development loan is a specialist form of property development finance used to fund the construction or subdivision of residential or commercial property. Unlike a standard construction loan, a development loan is assessed primarily on the feasibility of the project itself, not just your personal income. Lenders will look at your development feasibility, project cashflow, projected end value, and your experience as a developer before deciding whether and how much they will lend.
The loan amount is typically expressed as a percentage of the total development cost or the gross realisation value (what the finished project is worth when sold). This is your development LVR, and it varies significantly between lenders. Some lenders will fund up to 70 or 80 percent of costs, while others are more conservative. Understanding where your project sits against these thresholds is one of the first things we work through with you.
The types of development finance available
Development finance is not one product. It covers a range of funding structures depending on the size, type, and stage of your project. Land acquisition finance helps you secure the site before construction begins. Subdivision finance covers the costs of splitting a title into multiple lots. Presale finance is structured around confirmed sales contracts from end buyers, which some lenders require before they will commit to funding. Mezzanine finance sits behind a first mortgage and fills the gap between what a senior lender will provide and what you need to complete the project. JV finance involves a funding partner taking an equity position in the project rather than lending in a traditional sense.
Each of these structures carries a different development interest rate, different risk profile, and different requirements. Some will suit your project. Others will not. Part of what Zella Money does is help you understand which structures are worth exploring and why.
What lenders look at
When you apply for a development loan, lenders are not just assessing you as a borrower. They are assessing the project. That means your development application and DA approval status matter. A project with council approval already in place is far easier to fund than one that is still in the planning phase. Lenders will also want to see your project documentation, including your development costs, project costs, and a realistic development timeline.
Your business financials will come into the picture too, particularly if you are developing through a company or trust structure. Lenders want to see that you have the capacity to manage the project and absorb unexpected costs. Cost overruns are one of the most common reasons development projects run into trouble, and lenders know this. Showing that you have contingency built into your budget goes a long way.
Development equity and the development deposit you are contributing also matter. The more skin you have in the game, the more comfortable most lenders will be. If you are using development equity from an existing property, we can help you understand how that equity could be structured as part of your funding.
The development exit strategy
Every lender wants to know how they get their money back. Your development exit strategy is the plan for repaying the development loan, whether that is through the sale of completed dwellings to end buyers, refinancing into a long-term hold structure, or a combination of both. A clear and credible exit strategy is not optional. It is one of the core things lenders assess when deciding whether to fund a project.
If your plan involves selling individual lots or dwellings, lenders will want to understand the local market and whether your pricing assumptions are realistic. If you are planning to hold some or all of the completed stock, they will want to understand how the ongoing debt will be serviced. Zella Money helps you think through this before you sit down with a lender, so you are presenting a complete picture rather than filling in gaps on the fly.
Why working with a broker matters for development finance
Development borrowing is not something most people do more than a handful of times in their lives. The lender landscape for development project finance is more fragmented than the residential market, with a mix of major banks, non-bank lenders, and private credit providers all operating under different criteria. Some lenders will only look at projects above a certain loan amount. Others specialise in land development finance or specific project types. Knowing who to approach, and how to present your project to them, makes a genuine difference to both the outcome and the development rates you are offered.
At Zella Money, we take the time to understand your project before we start talking to lenders. We look at your project funding needs, your timeline, your equity position, and your exit plan. We then match that picture to the lenders most likely to support it. That is not a shortcut. It is just a smarter way to fund property development.
If you are thinking about your next development project and want to understand what your options could look like, we would love to have that conversation. Explore our vacant land loans and commercial property loans pages to see how other parts of the lending landscape could support your broader strategy.
Getting a home loan can feel overwhelming. It doesn't have to be. At Zella Money, we've built a process that keeps you informed, supported, and confident at every step. Here's how we work together.
Let's Have a Chat: Everything starts with a conversation. We take the time to understand where you are right now, where you want to go, and what matters most to you. No pressure, no jargon. Just an honest discussion about your situation and your goals.
We Dig Into the Detail: Once we know what you're working towards, we take a closer look at your finances. Income, expenses, savings, existing debts. We look at the full picture so we can give you advice that's actually relevant to your life, not just a generic answer.
We Research the Market: With a clear picture of your situation, we search across a wide panel of lenders to find options that genuinely suit you. We're not tied to one bank or one product. Our job is to find the right fit, not the easiest one.
We Walk You Through Your Options: We present a shortlist of suitable loan options and explain each one in plain language. Rates, fees, features, flexibility. We cover it all so you can make a decision you feel good about. No hard sell, ever.
We Handle the Application: Once you've chosen the loan that works for you, we take care of the paperwork. We prepare and lodge your application, liaise with the lender, and keep things moving. You don't need to chase anyone.
We Keep You in the Loop: From application through to approval, we stay in regular contact. You'll always know where things stand. If the lender needs anything extra, we handle it quickly and let you know what's happening and why.
Settlement and Beyond: Approved and settled? We're still here. We check in after settlement to make sure everything's running smoothly, and we stay available as your circumstances change. One loan is just the beginning.
Ready to talk to the team? We're excited to meet you! Shoot though an enquiry and we'll get back to you ASAP!
Get in touch
We used Jaclyn the Senior Finance Broker to buy our first home and she was amazing! She is so knowledgeable, made us feel valued and turned our dream into a reality. Can not recommend her enough! Shout out to Sal as well the Settlements Manager who helped make settlement nice and simple.
Chris Fallon
I cannot recommend Zella highly enough! Charlotte and the wider Zella team were with us every step of the way! They truly had our backs in securing the best home loan for our family. Prompt, informative and easy to deal with! Thank you so much for all your hard work!! xx
Olivia Jolliffe
I had a great experience with Zella from start to finish. The team was friendly and made our refinance super easy. Highly recommend!
Casey Sharrock
Huge thanks to Tara and her team! Highly recommend !
Maddie B
Bought my first home through Zella and so so glad I did! Georgia was extremely helpful from the start and patient with answering all of my stupid questions. Thank you again for everything!
Christine Untario
I really appreciated working with the team. They were really efficient, no question went unanswered and they were lovely to work with. I felt in good hands!
Jane Eldershaw
Tell us a little about where you're at, and we'll take it from there.
Let's chat
For most standard lending appointments, no. We're paid by the lender once your loan settles. In rare cases where applications are highly complex, a fee may apply, but we'll always discuss and disclose this with you upfront.
Yes. We use bank-grade security systems and are fully compliant with Australian privacy regulations. Your information is treated with the highest level of care and confidentiality.
Absolutely. We assist clients across Australia and have a thorough understanding of different state and territory regulations, grants and incentives.
We keep communication clear and simple. Your broker will be available via email and phone, and we manage documentation securely through our electronic portal. Your initial meeting can be held over the phone or by video call, depending on your preference. We're always just a message away if you need support.
To get started, we'll need documents such as identification, proof of income (like payslips or tax returns), details of your assets and liabilities, and statements for any existing loans or credit facilities. Your broker will give you a personalised checklist so you always know what's needed.
Your borrowing capacity depends on factors like your income, expenses, existing debts, credit history and the policies of individual lenders. We'll work with you to assess your position and give you a clear understanding of what's achievable.
Yes. Our brokers stay across all available incentives, including first home buyer grants, stamp duty concessions and guarantee schemes. If you're eligible, we'll help you understand how to apply and make the most of these opportunities.
Absolutely. We specialise in guiding first-home buyers through the process with tailored advice, clear communication and plenty of support along the way.
Banks offer their own products. We offer you options. As your broker, we take the time to understand your goals and financial circumstances before searching across a broad panel of lenders to find solutions that genuinely suit you. We also stay across the latest policies, grants and niche lender options that could make a real difference to your outcome.
We conduct a credit check early in the process to help us best assist you. Your score is safe with us. If you have any concerns about your credit history, please speak with your broker — we're here to support you.
Pre-approvals generally last between three and six months, depending on the lender. We'll guide you through the timeline and help you refresh your approval if your property search takes a little longer than expected.
Once your loan is formally approved, we'll guide you through the settlement process. We work closely with your solicitor or conveyancer to ensure all requirements are met and everything runs smoothly right through to settlement day.
Definitely. We understand the nuances of self-employed income and have extensive experience presenting applications for business owners in a way that resonates with lenders.
No. In addition to home loans, we also assist with commercial lending, investment loans, refinancing and asset finance. Whatever your finance goals, we're ready to support you.
Do we look familiar? You might have seen us on She's on the Money, Australia's number one business podcast, empowering over 1.2 million monthly listeners to take control of their finances. We'd love for you to join our community!
Listen Here
