Property Development Finance with the Big Four Banks: What It Takes to Get Approved

Every developer wants Big Four pricing. It's usually the cheapest cost of debt available, backed by the deepest balance sheets and the longest facility terms on offer in the Australian market. What's less understood is how narrow the Big Four's credit box actually is for development finance, and how much work goes into positioning a deal to fit inside it.

Having spent decades as commercial bankers inside Westpac and CBA, we've sat on both sides of this exact conversation. Here's what the Big Four are really looking for, and when it's smarter to look elsewhere.

Why Developers Chase Big Four Finance

• Materially lower interest rates than second-tier, non-bank, or private credit alternatives.
• Longer facility terms and greater certainty of funds for larger, multi-stage projects.
• A relationship banking model that rewards repeat, well-capitalised developers over time.

What the Big Four Actually Require

Big Four credit teams are conservative by design, and development finance is one of the most heavily scrutinised asset classes on their books. Expect close attention to:

• Presale or pre-lease thresholds — commonly 100%+ of debt covered by presales for residential, or a meaningful pre-commitment for commercial and industrial stock, before funds are drawn.
• Sponsor track record — a demonstrated history of delivering similar-scale projects on time and on budget, plus genuine cash equity in the deal, not just land value.
• QS-certified total development cost (TDC) — an independent quantity surveyor's cost report, with realistic contingency, underpins the entire facility.
• A fixed-price contract with an experienced, financially sound builder — cost-plus or unproven builders are a common reason for decline.
• Conservative LVR/LVC and interest cover — Big Four leverage on development sits meaningfully below what second-tier or non-bank lenders will offer.

Where the Big Four Say No, and Who Steps In

It's not a failure of the deal when a major bank declines it, it's usually a mismatch between the project and that bank's current credit appetite. Common reasons include:

• First-time or thinly capitalised developers without a demonstrated track record.
• Spec developments with no presales in a market the bank views as soft.
• Complex sites, staged approvals, or unusual title structures.
• Timelines that don't suit the bank's current internal approval capacity.

In these cases, second-tier banks, specialist non-bank development financiers, and private credit exist for exactly this reason, typically at a higher cost of debt, but with materially more flexibility on presales, leverage, and sponsor experience.

Real-world example: A client with a fully-approved 24-unit residential project and a strong track record was declined by their existing Big Four bank purely on presale timing, the bank wanted 100% presold before the developer's marketing campaign had run its course. Rather than wait, we ran a tender across a second-tier lender and two non-bank financiers, secured terms at 70% presale coverage, and had the developer on site eight weeks earlier than the Big Four pathway would have allowed.

How We Position a Deal for Big Four Approval

• Packaging the deal the way a credit analyst reads it, cost plan, presale evidence, sponsor equity, and risk mitigants presented up front, not extracted through follow-up questions.
• Timing presale or pre-lease campaigns to land ahead of the credit submission, not after.
• Commissioning QS reports and valuations that anticipate the bank's own requirements.
• Running competitive tension even within the Big Four, approaching more than one major simultaneously so the best-positioned credit team wins the deal.

Ready to Fund Your Next Development?

At Glenclair Financial, we know exactly what a Big Four credit team needs to see, because we used to be on the other side of that desk. Where a major bank isn't the right fit, we run the same deal across our panel of 60+ lenders to find one that is.

Book a free, no-obligation consultation and we'll tell you honestly whether the Big Four is realistic for your project, or where you'll get a better outcome.