Builder and spec build finance
Building homes to sell?
Finance for builders and small developers building homes to sell, often called spec builds. Lenders fund the land and the build in stages and are repaid when the homes sell. Your building track record, cost certainty and realistic sale prices drive how much you can borrow.
Who it suits
- Licensed building practitioners building to sell
- Builders moving from contract work to their own projects
- Small developers building one or a few homes
What lenders look at
- Your building experience and completed projects
- Land value and detailed build costs
- Expected sale prices, backed by a valuation
- How much of the cost you fund yourself
What to prepare
Tick them off as you go.
Questions to ask
- How much of the land and build cost will be funded?
- Is interest added to the loan during the build?
- Are pre-sales required?
- What happens if homes haven't sold by completion?
Everyone's situation is different. Lenders weigh things differently and small details change the answer. An adviser can tell you where you stand with builder and spec build finance and what to do next.
Talk to an adviserRun the numbers
Calculators for this
Development feasibility
Test costs, end value, margin and how much a lender might fund.
Calculate nowConstruction & developmentConstruction interest
Estimate the interest during a build, drawn in stages.
Calculate nowLearn more
Guides
How development finance works
Every development loan starts with the feasibility: what the project will cost in total, what it will be worth on completion, and the margin in…
Read the guideDevelopment · 1 min readConstruction loans: progress payments and interest during the build
A construction loan is paid out in stages as the build progresses, typically for the deposit, foundations or floor, framing, closing in, and…
Read the guideAlso in construction & development
Every situation is different
Tell us what you're planning and an adviser will work through your options with you.