Aug 2026
Pressure Two banks passed. DA lapsing in three weeks.
Move Split the stack: senior from a private fund, mezz behind it.
$4.2M
19 days to settle
How credit reads your deal · Q3 2026
Three ratios, one presale test, and the lender picks the one that hurts.
Every development facility is sized to the lower of loan-to-cost and loan-to-GRV, then gated by presale cover. The same project asks for a different equity cheque at each lender type. Knowing which ratio binds where is most of the job. Indicative market ranges, net of GST; your term sheet is the number.
What lenders test
The matrix, by lender type.
Eight tests, four lender types. Read down a column to see how one lender type builds a facility; read across a row to see where the same test moves.
| The test | Major bank | Non-bank senior | Private | Mezz · pref |
|---|---|---|---|---|
| Loan-to-cost of total development cost | 60–75% | 70–80% stretch to 85% | 75–85% | stack to 85–90% |
| Loan-to-GRV as-if-complete, net GST | 60–65% | 65–70% some to 75% | 70–80% | — |
| Presale cover qualifying, % of debt | 100–120% easing to ~50% on metro | 0–50% | often nil, exit-led | — |
| Indicative rate senior, p.a. | ~5.5–7.5% | ~8.5–12% | ~10.75–14% | ~14–22% + profit share |
| Establishment | 0.75–1.5% | 1–2% | 1.5–3% | negotiated |
| Credit decision | 6–12 weeks | 2–6 weeks | 5–15 business days | with senior |
| Land bank of as-is value | rare | 40–55% | 40–65% | — |
| Residual stock of on-completion value | selectively back | 55–75% | 55–75% | — |
Ranges compiled Sep 2026 from published lender criteria and market guides (La Trobe Financial, Pallas Capital, Feasly, MPA, Ardent Capital, APRA correspondence Feb 2025). Indicative only; not an offer of finance. Australian Credit Licence 384704.
The saves
Eight recent deals, on one 31-day axis.
The pressure Sam walked into, the move he made, and the days from first read to settlement. Each row is a different rulebook chosen for a different reason.
Eight recent saves
Each one had a clock on it. Each one settled.
Aug 2026
Pressure DA extension window closing. Bank would not move.
Move Restructured off the bank into a land-bank facility with interest capitalised.
$1.8M
14 days to settle
Jul 2026
Pressure Bank exit post-completion. 30 days to full repayment.
Move Residual-stock facility priced and settled while the apartments kept selling.
$7.5M
9 days to settle
Jul 2026
Pressure Builder ready to start. No construction lender in place.
Move Private construction facility, progressive drawdown against QS.
$3.65M
22 days to settle
Jun 2026
Pressure Equity gap the senior lender would not fill.
Move Blended senior plus equity-gap facility in one settlement.
$2.9M
18 days to settle
Jun 2026
Pressure Land contract and civil works needed funding together.
Move One combined acquisition-plus-civils facility.
$1.45M
25 days to settle
May 2026
Pressure Senior approved. Gap of $680k with no lender behind it.
Move Mezzanine behind the tier-2 senior, priority deed negotiated.
$680k
11 days to settle
May 2026
Pressure Four lenders, one settlement date, largest facility to date.
Move Full stack coordinated: stretch senior, priority deeds, ICAs, standstill.
$14.2M
31 days to settle
$36.4M settled across these eight · median 18.5 days · 8 of 8 settled
Illustrative deal shapes · locations and specifics de-identified · data refresh 2026 Q3
Facility types
Six deal types · one broker · zero handoffs.
The difference between a deal that gets a yes and a deal that dies at credit is usually one ratio, one contract clause or one lender chosen too early.
Construction finance
Ground-up residential and mixed-use. Sized to the lower of loan-to-cost and loan-to-GRV, drawn against QS-certified cost-to-complete, interest capitalised inside the limit. Duplex to 40 lots.
Land bank
Hold-and-develop. Pre-DA and DA-approved sites at roughly 40 to 55% of as-is value with 6 to 24 month runway, interest capitalised, and the refinance into construction agreed before the land settles.
Residual stock
Unsold stock at practical completion. Refinance the construction debt into a residual facility, commonly 55 to 75% of on-completion value, so you sell finished product at finished prices instead of at a bank's deadline.
Mezzanine + prefs
Second-ranking debt behind senior, on an intercreditor deed the senior lender will actually sign. Takes the cash equity a project needs from around 35% of cost toward 15 to 20%, and the developer's IRR up with it.
Bridging + rescues
Bank pulled the pin, or a settlement is due in 14 days. Short-term senior against as-is value with a documented exit into a longer facility, and the default rate, extension rights and long-stop read before you sign.
Complex stacks
Senior, mezz, preferred equity, JV partner. Several funders coordinated into one settlement: priority deed, intercreditor agreement, standstill, one drawdown schedule everyone has signed.
Panel
40+ lender relationships · priced daily.
Bank, tier-2, non-bank senior, private fund, mezzanine, family office. Sam knows which of the forty is sizing to GRV this month, who will still count a 10% deposit bond, who has no presale test under $5M, and whose credit committee just turned regional Queensland off. Not what the panel published last quarter.
BANKWEST
LA TROBE
THINKTANK
RESIMAC
MERCHANT
MKM
METRICS
SUNCORP
SEMPER
MAXCAP
MADIGAN
+30 MORE
Which ratio binds on yours?
Sam works it out in the first read.
Send the deal and the first read comes back inside four hours: the ratio that binds, the lender type that fits, the equity you will need on day one. Not a quote; a term sheet confirms.
OFFICE
4/51-55 Bulcock Street
Caloundra, Sunshine Coast
Queensland 4551
HOURS
Mon-Fri · 7:00am, 6:00pm AEST
Deals reviewed same-day
Urgent? Call the mobile.
CREDENTIALS
ACL 384704 · Finsure
CRN 474370
BWM Licensees Pty Ltd
ABN 84 602 422 668