Bridging Loans for Property Developers

Property developers use bridging finance to secure sites quickly, settle on acquisitions while construction finance is being arranged, and fund early works that long-term lenders won't touch.

How do property developers use bridging finance?

Developers use bridging loans to acquire DA-approved sites, settle land while construction finance is finalised, fund demolition and early works, or hold a completed development while units sell down. Terms run 6–24 months with LVRs of 65–75% on gross realisation value.

• Site acquisition: secure a site before competition does, while you arrange construction finance.
• Settlement bridging: land settles before construction finance is approved.
• DA / planning works: fund holding costs while pushing a DA through council.
• Early works: demolition, civil, services — before construction finance drawdowns start.
• Residual stock loan: hold completed units while they sell down post-construction.

Lenders focus on the site value, your development experience, and the exit. A DA-approved site with a track-record borrower and a credible construction-finance pipeline gets the best terms. Larger and more complex projects move into private and specialist commercial lender territory.

• Loan size: $500k – $20M+
• Term: 6 – 24 months
• LVR: 65 – 75% of as-is value
• Rate: 9 – 14% p.a. depending on lender and risk
• Exit: construction loan, sell-down, refinance to investment loan