Compare private lenders for a property development

What a development lender looks at

A development loan funds a site and a build, and is repaid from what the finished project is worth. The quote reads it on two ratios that update as you type: loan to cost and loan to end value.

On Panel compares private and non-bank lenders for business-purpose loans secured by Australian property. A development is compared within that scope.

Each lender on the panel has its own policy, so the same development fits some lenders and sits outside others. The comparison shows the lenders it fits.

What you enter in the quote

Paste a few lines of the scenario, or a client’s email, into the first box and the quote reads what it can from it. Expected end value is entered excluding GST, so the figure is the same one whichever lender it is read against. You can compare the lenders on the panel without signing in.

• The site, by address or by choosing No address yet.
• The loan amount.
• Land value or purchase price.
• Build cost.
• Expected end value, excluding GST.
• The advance at settlement.

Site and build on one card

The development card reads Site acquisition and construction. Land and build go through the one card, on one scenario.

The site takes a property type from the same list as any deal, with apartments, mixed use, office, industrial and land subdivision among them.

A site with a build on it is entered once. Change the land value or the build cost and loan to cost moves with it; change the expected end value and loan to end value moves. A different budget is a quick check rather than a new submission.

How the lenders are compared

The lenders on the panel are compared on the same development, on loan to cost and loan to end value. The result shortlists up to three lenders, fits first, with rate, amount, term and cost side by side.

Each rate carries its policy condition and policy version. Cost is worked out from the policy rate, interest only, at the term you selected, and the result says so.

The condition beside a rate names the location, and the limit of cost or of end value where the lender’s policy states one. Read the condition before the number, because a rate quoted without it says little about your scenario.

Loan to cost and loan to end value show live as you enter the figures, so you can see where a budget sits before the comparison runs. A figure that looks wrong is easy to catch and fix at that point.

What it costs a broker

Brokers pay $0 in On Panel fees on a development, as on any other deal. You keep 100% of your brokerage and your client relationship, and the lender pays On Panel on settlement.

The cost in the result is interest over the term plus the lender’s establishment and line fees. Valuation, legal and other third-party costs sit outside it and still apply to the project.

A lender on the shortlist that needs more detail is marked as such, so you know a fuller scenario may change its answer.

From comparison to settlement

A development file has more in it, and the support runs the length of it. Credit and sales support covers structuring, packaging, submission and lender follow-up through to settlement.

The lender sets the terms and makes the credit decision. A result is an indicative fit until then.

Brokers who want the file back before it goes to credit can have it, and brokers who would rather lodge it and wait for term sheets can do that instead.

Brokers ask