Off-the-Plan Valuation Came In Short? Urgent Short Term Finance to Settle
Complete your off-the-plan investment on time, even if the valuation or the bank has changed
Experts in strategic, short-term finance
Off-the-plan contracts are often signed two or three years before completion, and a lot can change in that time. If the valuation has come in under the contract price, or the bank has changed its policy, we can fund your settlement in as little as 24 hours.
We fund off-the-plan settlements for investors buying apartments, townhouses and commercial units across Australia. Our loans are for investment and business purposes only, so we cannot help with a home you plan to live in.
Why off-the-plan settlements run into trouble
- •The completion valuation is lower than the price you agreed years ago
- •The bank has tightened its policy on apartments or investors since you signed
- •Your income, or the number of properties you own, has changed
- •The bank wants a larger contribution than you planned for
- •The developer has given notice to settle, and the deadline is short
The notice to settle
Once the strata plan or plan of subdivision is registered, the developer gives notice, and you usually have a short, fixed period to settle, often two to four weeks. Check the exact period in your contract with your solicitor. If you do not settle in time, you risk losing the deposit, which on an off-the-plan contract is often 10% of the price.
What the settlement loan covers
- •The balance due at completion
- •The gap between the valuation and the contract price
- •Stamp duty, if it is payable at settlement in your state
Steps to completion
Notice received. Send us the contract, the developer's notice and any bank valuation. Within hours, we send you an indicative offer.
Valuation. Our in-house valuers inspect the completed property.
Letter of offer. We send it as soon as you confirm the terms.
Settlement. We are ready to settle within 24 hours of a signed letter of offer.
Documents to send
- •The off-the-plan contract and the developer's notice to settle
- •The bank valuation, and any change to your bank approval
- •Other property you could offer as extra security
- •How you will repay us: a bank refinance, a sale or funds from another settlement
Loans that can complete an off-the-plan purchase
- •First mortgage: over the completed property you are buying
- •Second mortgage: over another property you own, to cover a valuation gap
- •Caveat loans: fast access to equity in a property you already own
- •Bridging loans: to settle now and repay when another property sells
Off-the-plan loan terms
| Loan feature | Detail |
|---|---|
| Loan size | $250,000 to $10,000,000 |
| Interest rate | From 9.7% p.a. on a first mortgage, from 11.95% p.a. on a second mortgage |
| Term | 1 to 24 months, interest only |
| Maximum LVR | 70% of the lower of the assessed value and the contract price |
| Security | A first mortgage over the completed property, plus other property if the valuation is short |
| Settlement | From 24 hours |
After settlement
Most investors refinance to a bank once the property is tenanted and the rent is established. Others sell the property or another asset. We agree the plan before settlement and set the term to allow for it.
“Off-the-plan buyers often signed their contract years ago, and the valuation, the bank's policy or their own income has changed since. That does not make it a bad purchase. We value the completed property, work out how much equity is available, and fund the settlement so the buyer keeps the deposit.”
Gino Tabila
Associate Director
Frequently Asked Questions
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
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Case Studies
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$1.9M Commercial Property Acquisition for Growing Doggy Daycare Business
Get an indicative offer within hours, not weeks.
No credit check. No obligation.
Why Secured Lending?
Are you a broker? Find out why brokers love working with us.
Other Urgent Loans We Fund
Each page covers one deadline: what we fund, what to send us and how quickly we can settle.