Refinance / Restructuring
Can You Refinance Development Loans?
5 min read- Finance Guide
- Updated 2026
Quick answer
Development refinance usually depends on project stage and exit
65% 75%
Typical refinance range on stabilised or residual security, depending on lender and scenario
- Assessment bases Value, exit, serviceability
- Common refinance uses Exit, term out, restructure
- Project stage Completed or near complete
1300 421 044
1300 421 044
Key concepts in development refinance
Current value matters
Refinance is based on today’s security value, not the original development budget or peak expectations
Project stage matters
Completed and near completed projects are generally easier to refinance than early stage or materially incomplete projects
Serviceability still matters
The new lender still checks income, interest cover, rental support, sales strategy, and the ability to hold or clear the debt
Exit purpose matters
Term refinance, residual stock hold, partial debt reduction, or refinance to a lower risk facility all lead to different lender options
Common development refinance structures
When refinancing development debt, the new structure usually depends on whether the project is complete, whether stock remains unsold, and whether the borrower is trying to hold, sell, or stabilise the asset.
Residual stock facility
Hold completed stock
Used where completed units or townhouses remain unsold and need time to be sold down or leased
Term refinance
Replace maturing lender debt
Used to repay the current lender and extend the debt under a new facility that better fits the project stage
Debt restructure
Reduce pressure on cash flow
Can involve partial paydown, revised covenants, or a new loan sized to the actual value and sales position
Need Help with your Project?
What refinance lenders review
Lenders normally review the following when assessing a development refinance application:
-
01. Current valuation, stock schedule, and project statusSecurity position
-
02. Borrower financials, serviceability, and debt reduction strategyExit capacity
-
03. Presales, leases, residual stock quality, and marketabilityRealisation risk
Common problems with development refinance
Valuation comes in below debt
If the current valuation is below expectations, the new lender may not clear the full existing development debt.
Possible solutions include:
Reduce the refinance amount with a debt paydown- Provide additional security if acceptable
- Consider a lender with stronger appetite for residual stock or specialist exits
Project is not far enough advanced
Some lenders will not refinance until the project is practically complete, titled, leased, or otherwise easier to value and exit.
Possible solutions include:
- Complete enough works to improve lender comfort
- Provide updated reports, QS evidence, or completion timelines
- Target lenders that can take near complete or residual scenarios
Exit strategy is unclear
If the lender cannot see how the refinance will ultimately be repaid, the application can fail even where the security is decent.
Possible solutions include:
- Show a clear sell down, lease up, or takeout strategy
- Use updated sales evidence or rental evidence
- Restructure the loan to a level the exit can support
Steps to refinance development debt
Step
01
Confirm the current lender balance, expiry date, and why the refinance is needed
Step
02
Obtain updated project, stock, valuation, and sales or lease information
Step
03
Prepare borrower financials, entity documents, and serviceability evidence
Step
04
Match the scenario to lenders that handle development exits or residual stock
Step
05
Submit the application and let the new lender assess value, risk, and exit
Step
06
Complete approval, discharge the old lender, and settle into the new facility
Speak with a Development Refinance Specialist
Development refinance can vary significantly depending on project stage, remaining debt, stock position, presales, valuation, and the lender that needs to be taken out.
A specialist can review the refinance scenario and help determine which lenders may be able to replace the current facility on workable terms.
Speak with a finance specialist about refinancing your development loan.
Submit the short form below and a specialist can review the current facility, likely refinance options, and any issues that may affect approval.
Contact Form
Your enquiry is confidential
Prefer to speak with someone directly ?
Call us to discuss about your project finance queries
Additional Questions
You may also find these questions helpful
