When a developer goes looking for project funding, one of the lender’s first questions is how much equity can you put in? Typically, development lenders are looking for equity of 20 – 35%
This percentage is the portion of the total project development costs, including interest, agent commissions and contingencies that the developer can input themselves. Usually this equity portion needs to be fully spent before you can draw down any loan funds.
Banks have become tougher over the last 2 – 3 years on the amount of equity that they require from developers. Equity is usually cash available or value in the development site. (It may be mortgage free) But there are ways to work through the equity requirements.
Equity can be introduced in other ways, such as:
Non-bank lenders are better at finding ways to get developments under way with less equity. It pays off to source advice from experts to save yourself time and money.
PFNZ are experts at this, talk to us to get your project started.
Property Finance NZ can help you navigate and fulfil the requirements to get your project funded. Our specialists will analyse your project and provide you with the clearest pathway to secure funding. A free overview of your funding options is typically available within 24 hours.
Call Kingsley Turner on +64 9 215 0939 or email firstname.lastname@example.org to discuss your project.