A unit construction loan funds the build of a multi-unit residential development - typically apartment buildings, unit blocks, or strata-titled projects with multiple dwellings on a single site. Funds are released progressively as the project moves through its construction milestones, with each drawdown verified by quantity surveyor inspection before release.
Multi-unit residential is the asset class where bank construction lending criteria bite hardest. Pre-sale percentages above 50% are common, full borrower serviceability reviews are typical, and risk-averse credit committees often cap LVR ratios well below what the project's underlying feasibility supports. The result: developers either delay the build for months chasing pre-sales, or discount off-the-plan contracts heavily just to qualify - eroding the project's margin before construction even starts.
At CPF, unit construction finance is asset-led. Assessment focuses on the site, the development approval, the builder, the projected GRV of the completed building, and a credible exit strategy - typically the staged sale of completed units, a refinance to a longer-term facility, or progression to a residual stock loan if some units remain unsold at the end. Pre-sales are not a hard gate. The loan can also fund partially completed projects where an existing facility is expiring before the build is finished.
Up to
65% GRV (up to 75% with second mortgage) Low or
no pre-sales required - start the build on the project's terms
Avoid
forced off-the-plan discounting just to hit bank pre-sale
thresholds
Capitalised interest - no monthly debt servicing during the build
Staged
drawdowns aligned with construction milestones
Funding available for partially completed projects mid-build
Takeout funding available on completed projects No
brokerage clawbacks - broker commissions stay paid
Build the units, finish the project, and sell into a completed market - without locking in heavy off-the-plan discounts.
Smaller multi-unit projects - six to thirty dwellings - that fall below the threshold that other lenders consider worth funding.
An existing construction facility is expiring before the project is finished. CPF can enter mid-build and fund to completion.
Hold pre-sales until the building is finished. Buyers can walk through the completed product, typically improving sale prices.
Submit your scenario for assessment or speak with our team about unit construction finance for your next development.
Funding solutions designed for property developers, investors, and brokers across Australia.
