Residual stock finance is a property-backed loan secured against completed but unsold dwellings at the end of a development. When construction wraps up, most senior lenders expect their facility to be repaid quickly - but properties don't always sell on the bank's timeline. A residual stock loan refinances that exposure, releases the developer from the original lender, and provides time to settle remaining stock at full market value.
The structure is straightforward. An interest budget is built into the approved loan amount, so no monthly repayments are required during the term and no additional serviceability tests are needed. As individual units settle, the security is partially discharged and the loan balance reduces - keeping pace with the project's wind-down.
Compared to traditional bank refinancing, residual stock finance is faster, more flexible, and assessed primarily on the value of the completed asset - not on borrower serviceability. It's commonly used by developers who want to avoid forced discounting, free up equity for the next site, or restructure debt cleanly after practical completion.
Refinance maturing construction debt without rushing salesRelease equity from completed stock to fund the next projectNo debt servicing - interest is capitalised into the facilityAsset-led assessment - no tax returns or serviceability testAvoid forced discounting and protect project profit marginsPartial discharge as stock sells - the loan winds down with the project
Replace the senior construction facility once the project reaches practical completion, giving you time to settle remaining stock.
Pull capital out of completed stock and redeploy it as deposit or working capital on your next development site.
Hold completed properties through a soft market without pressure to discount or fire-sale just to clear the debt.
Skip pre-sales, build, refinance on completion, then sell on your terms and capture the higher price.
Submit your deal for assessment or speak with our team about refinancing your completed project.
Funding solutions designed for property developers, investors, and business owners across Australia.
