A development loan of up to $10 million with no pre-sales required is now available to Perth and South West builders through a large listed mortgage aggregator’s commercial panel. The lender behind it is a Western Australian specialist. Pre-sales are the usual proof that buyers exist before a bank will fund construction, so waiving them is a notable shift in who carries the risk.
The product targets builders and developers who miss mainstream lenders’ criteria, especially those who can’t line up enough off-the-plan commitments. It covers a wide mix: single dwellings, townhouses, apartment blocks, industrial sites and land subdivisions. Owner-builders can apply, and staged payments are released within 48 hours.
Why a pre-sale waiver matters
Pre-sales do two jobs. They show a project has real demand, and they give the lender an exit, because buyers settle and the loan is repaid. Remove them and the lender is betting on the finished product selling into whatever market exists on completion day.
That is a different risk from the one banks accept. It sits further along the risk curve, which is where specialist and non-bank lenders operate. Higher pricing and tighter loan-to-cost limits usually follow. The source material does not give rates or lending terms, so brokers and borrowers should treat the headline limit as the start of the conversation, not the price.
Key numbers
- Loan size: up to $10 million per project
- Panel size: more than 80 lenders and partners
- Perth dwelling values: up 10.1% in the year to September
- WA dwelling approvals: up 3.2% in August, private houses up 8.6%
Timing: strength on paper, caution underneath
The launch lands in a market that looks strong on the annual numbers. Perth values rose 10.1% over the year to September while national values were flat. WA approvals also grew in August, as Queensland and New South Wales fell sharply.
So the case for the product is easy to make. Demand is there, supply is thin, and traditional lenders are cautious. Commentary on the deal has split along predictable lines. One camp sees a lender filling a genuine funding gap in a market that needs more homes. The other asks why a no-pre-sale product appears just as price momentum is being questioned, and whether it signals more appetite for risk late in a run.
Both readings can be true. A year-on-year gain says where prices have been, not where they are heading. Funding projects without pre-sale proof leaves less margin for error if buyer demand cools before completion.
What it says about non-bank risk appetite
This fits a wider pattern of private and non-bank credit stepping into development lending as banks hold back. We have covered how private credit is expanding into commercial property lending, and how one lender cut jobs as development exposure bit. Those two stories show both sides of the same trade: growth when conditions are good, and strain when projects stall.
A specialist with three decades of local lending experience brings real knowledge of Perth sites and builders. That is a genuine advantage over a lender assessing from afar. But local knowledge does not remove cycle risk. Stage payments released within 48 hours help builders keep trades moving, though speed also demands strong lender controls on cost and progress.
Does it help the supply pipeline?
Potentially, yes. Smaller builders and owner-builders often stall at the finance stage rather than the planning stage. Access to funding without pre-sales could bring forward projects that would otherwise wait. In a state with rising approvals, that matters.
The catch is that finance is only one constraint. Labour, materials and approvals timelines all shape whether approvals become completions. Easier credit can add pressure on the same scarce trades, lifting costs for everyone.
A cautious reading for brokers and borrowers
For brokers, the panel addition widens options for clients who don’t fit bank policy. For developers, the questions to ask are simple. What does it cost compared with a bank loan with pre-sales? What happens if completion lands in a softer market? How much equity is required upfront? A quick rule of thumb: the easier the entry terms, the more the pricing and conditions deserve scrutiny.
None of this is a warning on Perth. It is a reminder that product launches reveal lender sentiment, and a no-pre-sale offer says lenders are betting the run continues. Start here: read the full loan terms and stress-test a 10% fall in end values before committing.
General info, not financial advice.
