Residential Development Loans
Selective senior debt for residential projects that can be underwritten on feasibility, security and a documented path from construction to sale or refinance.
Overview
Residential development finance in Australia is typically split across the project life: land or residual stock, construction, and a take-out or completed-stock facility once dwellings are built. Private-credit lenders sit alongside the banks on the transactions that need speed, flexibility or a structure that does not fit a standard construction-loan box.
VERITAS HORIZON considers selective residential development loans where the sponsor, the product and the location can be evidenced. That may include townhouse or apartment schemes, staged land-and-housing programmes, or completed but unsold stock that needs time for an orderly sale rather than a discounted clearance.
Underwriting is feasibility-led. We review the development programme, cost-to-complete, presales or absorption evidence, independent valuation, mortgage priority and the approved loan-to-value or loan-to-cost position. Interest, fees and drawdown mechanics are documented before first funding — they are not implied from a published rate card.
The exit is as important as the build. A residential facility is only written when there is a realistic path to repay through settled sales, a refinance of completed stock, or another documented take-out. Monitoring continues through construction or the sales period so that covenants and the repayment plan stay aligned.
Product focus
Selective residential schemes
Typical security
First mortgage over the project
Underwriting lens
Feasibility and absorption
Exit focus
Settled sales or refinance
Uses
What this facility can fund
- Construction of townhouses, apartments or staged residential communities with a defined programme
- Refinance of land into a development facility once key approvals and a build programme are in place
- Completed-stock or residual-inventory funding so construction debt can be repaid without a fire sale
- Selective working-capital support secured against the project while sales or settlements complete
Sponsors
Who this is for
- Developers with a track record in a comparable product type and location
- Sponsors who can table a feasibility, cost plan and evidence of buyer demand
- Borrowers seeking senior-secured private credit where bank construction terms do not fit
- Owners of completed but unsold dwellings who need time for an orderly sales campaign
Underwriting
How we assess a residential facility
- Location, product mix, comparable sales and the depth of local buyer demand
- Approvals, builder capability, cost-to-complete and contingency in the development programme
- Presales, expressions of interest or other absorption evidence appropriate to the stage
- Independent valuation, mortgage priority and approved loan-to-value or loan-to-cost
- Sponsor equity, guarantees and the capacity to support cost overruns or slower sales
- A repayment path through settled contracts, refinance of completed stock or another documented take-out
From enquiry to funding
Step 1
Project briefing
Share the scheme, programme, cost plan, security and the intended sales or refinance exit.
Step 2
Feasibility review
We test demand, costs, leverage and whether the exit can support a senior-secured facility.
Step 3
Valuation and due diligence
Independent valuation, legal title and credit work are completed on the project and the sponsor.
Step 4
Credit approval and terms
Facility size, conditions, covenants and drawdown mechanics are confirmed in writing.
Step 5
Documentation and security
Loan, guarantee and mortgage documents are executed and security is registered.
Step 6
Funding and project monitoring
Drawdowns follow the approved programme, with monitoring of costs, sales and the repayment plan.
Other services
View allServices
Investor Solutions
Eligible wholesale investors can access selected Australian private credit opportunities secured by tangible property and documented first-ranking mortgages.
Services
Borrower Solutions
Clear, structured and property-backed private credit for borrowers and funding partners, underwritten transaction by transaction in Australia.
Services
Landholding & Land-Bank Funding
Senior-secured funding for landholders who need time to plan, rezone, consolidate or wait for a development approval — without forcing a sale of the site.
Services
Commercial Development Loans
Selective senior debt for commercial real estate where income, value-add or a documented lease-up can support a first-mortgage facility through to refinance or sale.
Services
Residual Stock Funding
Senior-secured funding against completed but unsold stock, so a construction facility can be repaid without forcing a discounted clearance.
Eligibility
Discuss this facility
Residential development loans are subject to credit approval, satisfactory feasibility and due diligence, documented security and a defined sales or refinance exit. Terms are set transaction by transaction.
Contact us