Urgent Short Term Loans to Repay a Construction Loan on Unsold Units

Repay your construction lender, then sell the remaining units at the right price

Experts in strategic, short-term finance

Rated 5 out of 5Jason V

Hands down, the best private lenders in the biz
Gino, Alec and Finn are exceptional at what they do. Top tier communication and transparent service.

Rated 5 out of 5Rhowell Dela Rosa

Every settlement has been smooth
Gino and the team at Secured Lending are our go-to when a deal needs to move fast or fall outside bank criteria.

Rated 5 out of 5Rory Mcgrath

Always my top choice for nearly all private lending scenarios
I run and operate a private lending brokerage and have worked with Mark and the team for years.

Rated 5 out of 5Luke Egan

Speed to market on lending advances second to none
The owner is also one of best commentators on LinkedIn calling out poor lending and recovery practices.

Rated 5 out of 5amal maharaj

True professionals in the non bank lending space
Straight forward application and assessment process with clear communication till loan settlement.

Rated 5 out of 5Sam Algeri

Excellent service, quick approvals and seamless settlements
The team at Secured Lending, particularly Gino and Finn, are fantastic to work with.

Rated 5 out of 5sebastian wright

Speed, reliability, transparency
Exceptional team. Exceptional Service. Loved working with the team at Secured Lending.

Rated 5 out of 5Jordan Thomas

Gino & Finn are the best in the business
Quick and painless to deal with, keep up the great work SL team!

Rated 5 out of 5Wayne McCarthy

Always willing to think outside the box to get deals done
We've had a great experience working with Secured Lending.

Rated 5 out of 5JP G

Quick, responsive and reasonable
With all the shady characters in the private lending market, its refreshing to find good people to deal with.

Rated 5 out of 5Joel Togo

Always thorough on assessment and will give you a prompt answer
With clients that are in time sensitive situations, this is crucial.

Rated 5 out of 5David Pruscino

Always professional and supportive
It's a pleasure dealing with the Secured team.

Rated 5 out of 5Monica Monsigneur

A professional and common sense lender who delivers

Rated 5 out of 5Thomas de Fegely

Great options in the private space
Have been dealing with Finn from Secured Lending, he has been very responsive.

Rated 5 out of 5Andrew Soo

A very reliable funding partner
Highly recommended.

Rated 5 out of 5Phil Boyle

Very efficient, responsive
Finn was a great help to assist in a very timely manner.

Finance within

24 hours

Loans from

$250k to $10M

Rates from

9.7% p.a.

Terms

1 to 24 months

Construction lenders usually want to be repaid soon after practical completion, but selling the last units can take months. If your construction loan is due and some units are still unsold, we can refinance it in as little as 24 hours, so you can sell at a fair price instead of discounting to meet the lender's date.

We lend on completed apartments, townhouses and houses across Australia. The loan runs for 1 to 24 months, and each unit can be released as it sells.

Why developers are left holding completed units

•Sales slow after completion, and the construction loan matures first
•Off-the-plan buyers fail to settle because their bank valuation came in low
•The construction lender adds default interest or a higher margin after maturity
•Land tax, strata levies and marketing costs continue on every unsold unit
•The next project needs a deposit, and the capital is tied up in the unsold units

The Reserve Bank has noted that a small share of new apartments fail to settle even when market conditions are supportive, and that buyers' borrowing depends on the bank valuation at completion.

What we fund

•Repaying the construction lender in full
•Covering the shortfall left by buyers who did not settle
•Holding costs while the remaining units sell
•Releasing equity from unsold units to start your next project

Unit releases as each sale settles

Before settlement, we agree a release amount for each unit. When a unit sells, part of the sale proceeds repays that amount and the unit is released from our mortgage, so the sale can settle. You can sell units one at a time, on your own timetable.

Refinancing a maturing construction loan

Call. Send us the list of unsold units, recent sale prices and the construction loan maturity date. Indicative terms reach you within hours.
Valuation. Our valuers assess each unsold unit on its own, as completed property.
Letter of offer. After you accept, the letter of offer is sent the same day, with the release amount for each unit.
Settlement. We repay the construction lender at settlement, within 24 hours of the letter of offer being signed.

Information about your units

•A schedule of unsold units with titles and asking prices
•Recent sales in the project, including any that failed to settle
•The construction lender's payout figure and maturity date
•Your sales plan, including the agent's marketing campaign

Loans for unsold completed units

•First mortgage: over the completed units, to repay the construction lender
•Second mortgage: behind a construction lender that agrees to stay, to cover a shortfall
•Bridging loans: for a set sell-down period with a clear end date
•Secured business line of credit: for strata levies, land tax and marketing costs during the sell-down

Residual stock loan terms

Loan feature	Detail
Loan size	$250,000 to $10,000,000
Interest rate	From 9.7% p.a. (first mortgage), from 11.95% p.a. (second mortgage)
Term	1 to 24 months, interest only. Interest can be capitalised until units sell
Maximum LVR	70% of the assessed value of the completed units, not the list price
Security	A first or second mortgage over the completed, unsold units
Releases	An agreed release amount for each unit as it sells
Settlement	From 24 hours

Selling down and repaying

The loan is usually repaid as the units sell, through the release amounts agreed at the start. Some developers keep a few units as rentals and refinance them to a bank, or sell the remaining units to one investor. We agree the plan with you and set the term to allow for a realistic sales campaign.

“Completed units are finished property with a clear value, and they usually sell. The difficulty is timing: the construction lender wants to be repaid before the last units are sold. We repay the construction lender, agree a release amount for each unit, and give the developer time to sell without discounting.”

Gino Tabila

Associate Director

Frequently Asked Questions

Yes. We repay the construction lender at settlement and lend on the completed units, so you can keep selling without the construction lender's maturity date.

Yes. We agree a release amount for each unit before settlement. When a unit sells, that amount is repaid from the proceeds and the unit is released from our mortgage so its sale can settle.

Up to 70% of the assessed value of the completed units. We value each unit on its own, based on recent sales, not on the list price. If the units alone do not support the loan you need, other property you own can be added.

Yes. We lend on every unsold unit, including those whose buyers did not settle, and use the loan to repay the construction lender, which was relying on those settlements.

Yes, up to 70% of the units' value in total. Many developers add land tax and strata levies to the loan and capitalise the interest, then repay both from the sale proceeds.

Yes. If the units are worth well above the construction debt, we can lend more than the payout figure, up to 70% of their value. Developers often use this to pay the deposit on their next site.

Same-day refinancing is possible, depending on your scenario, and the construction lender can usually be repaid within 24 hours of a signed letter of offer. Having the payout figure and the unit schedule ready when you call is what speeds it up most.

We also fund working capital for property development, construction and real estate businesses: deposits on new sites, consultant fees, marketing and staff costs. Send us the site contract or the invoices with your first call.