April 10, 2019
More private commercial lenders offering loans without pre-sales
More than a third of private lenders in Australia are starting to offer loans to residential developers without pre-sales commitment, as tough times in the housing market call for more fluid lending, an annual survey by lending broker Stamford Capital reveals.
Nearly all of the major banks still require pre-sales of apartments and new homes of between 60 per cent and 100 per cent of the projects to justify loans for construction and development but private lenders have started to veer into new territory, with many offering pre-sale-free loans to developers with well-located projects, Stamford says.
Read the full 2019 State of Play report click here.