← Back to Commercial & Corporate Lending
Property construction requires finance structured around progress payments, drawdown schedules, and builder contracts, not standard term loans. We arrange construction loans, progress payment facilities, and bridging finance for developers and builders, coordinating drawdowns against certified stages of work. Alasdair's banking background means he knows how to package a construction deal so it clears credit committee the first time, protecting your build timeline and budget.
Running a larger, multi-stage development? See our dedicated Property Development Finance service.
Property construction finance is structured around the build program, not a standard term loan. Funds are advanced in progress draws against a quantity surveyor's report, with the lender holding a fixed-price building contract from a licensed builder, a realistic total construction period and a contingency of usually 5% or more. For residential development, banks generally want qualifying pre-sales covering 100% or more of the debt, at arm's length to unrelated purchasers. That bar has pushed many developers toward non-bank construction lenders who accept lower or nil pre-sales in exchange for a higher rate and tighter equity tests.
Cost escalation since 2021, builder insolvencies and trade shortages have made lenders far more focused on builder financial capacity, fixed versus rise-and-fall contracts, and the adequacy of the contingency. In NSW the Home Building Compensation Fund, iCIRT ratings and the Design and Building Practitioners Act add scrutiny, and other states run their own builder licensing and home-warranty regimes. Feasibility is stress-tested on end value, not just cost, because a project that only works at peak pricing will not clear credit. GST, the margin scheme and the timing of input tax credits all affect peak debt. We prepare the feasibility, QS scope, builder due diligence and drawdown schedule, then tender the senior debt (and, where the equity gap warrants it, stretched senior or mezzanine) so you see the true all-in cost to completion, including line fees, extension fees and what each lender charges if practical completion slips.
Alasdair is a former banker and Executive Manager at both Westpac and CBA, bringing decades of senior banking experience to every commercial deal. He understands exactly how lenders assess risk, structure facilities, and price commercial debt, and he uses that insider knowledge to negotiate outcomes that most brokers simply can't access. If you're looking for an adviser who has run the bank's side of the table, you've found him.