Mortgage Sense Development finance

Development Loan Pre-Qual Pack

Tell us about your project and see straight away where it sits against a development lender’s two core tests. Fill in what you know — everything else is estimated from standard assumptions, and we’ll firm it up with you.

Max LVR 70% of GRVMax LTC 80% of total project costRegions Akl · Ham · Tga · Wgtn · Chc · QtnBroker fee capitalised into the loan, shown in the offer
Only five numbers are required — land cost, build cost, value on completion, the loan you need, and how to reach you. Leave anything else blank and the calculator fills it with the market-standard assumption, marked est so you can see what was assumed rather than entered. Tick off the documents you already hold; the ones you don’t have aren’t a barrier to enquiring, they just tell us what to help you gather.

Borrower & entity

6 items
  • Photo ID and proof of addressAll directors, shareholders and guarantors. AML/CFT — required before any offer issues.
  • Borrowing entity detailsCompany / LTC / trust deed, NZBN, shareholding and directorship. Most developments borrow through an SPV.
  • Statement of position (assets & liabilities)For each guarantor. Shows where the equity and the guarantee strength sit.
  • Developer track record / CVCompleted projects, scale, dates, outcomes. First-time developers aren’t excluded but need a stronger team around them.
  • Exit strategy with evidenceKeySell or refinance-to-hold. Sale: agent appraisals or presale S&Ps. Hold: an indicative bank term-debt position and servicing.
  • Existing debt schedule and 3–6 months bank statementsConfirms conduct and any prior-ranking security over the land.

The site

5 items
  • Record of titleCurrent search copy plus every instrument — easements, covenants, consent notices, encumbrances.
  • Land acquisition evidenceS&P agreement if you’re buying, or purchase price, settlement date and current debt if you already own it.
  • Registered valuation — “as is” and “on completion”KeyThe on-completion / GRV figure drives the 70% LVR test. Must be from a lender-panel valuer and addressed to the lender.
  • Proof of cash equity / depositBank statement showing the funds, or the valuation supporting land equity contributed in lieu of cash.
  • Geotech, contamination (PSI/DSI) and services reportsWhere available. Ground conditions and remediation are the classic source of cost blowout.

Consents & design

4 items
  • Resource consent (RC)KeyGranted decision plus conditions, or the lodged application with the planner’s timeline. Unconsented land is a feasibility discussion, not a loan application.
  • Building consent (BC)Granted, or lodged with reference number and expected issue date. Construction drawdown is normally conditional on BC issued.
  • Architectural plans and specificationsSite plan, floor plans, elevations, schedule of areas and unit mix.
  • Engineering plan approval / s223–224 pathwaySubdivisions only — the titles pathway and expected date of new titles.

Build & team

4 items
  • Fixed-price build contractKeySigned or draft, with the contract sum. Cost-plus is accepted rarely and priced for it.
  • Builder profile and financialsCompany details, relevant completed projects, insurances, and capacity to carry the job.
  • Construction programme and draw scheduleStage-by-stage timeline and cashflow. Sets the loan term and the interest line in the feasibility.
  • Contract works and public liability insuranceCertificates of currency, lender noted as interested party. At settlement

Numbers

4 items
  • Full project feasibilityKeyLand, build, professional fees, council contributions, contingency, finance costs, selling costs, GST treatment, and the resulting margin. This is the document the credit decision is built on.
  • Quantity surveyor’s initial cost reportIndependent verification of the build cost, and the QS who will certify progress claims through the build.
  • Sales evidence — presales or agent appraisalUnconditional S&Ps where they exist; otherwise two comparable-backed appraisals supporting the GRV.
  • Loan request: amount, term and drawdown profilePeak debt including capitalised interest and line fees — that peak is what the ratios are tested against.
Assumptions. LVR is tested against gross realisation value on completion, net of GST; LTC against total development cost including land, build, fees, contingency and capitalised finance costs. The broker fee is charged to the client but capitalised into the facility rather than paid separately, so it sits in total development cost and inside the loan the ratios are tested against. Interest is capitalised and estimated on the average drawn balance over the term — a 60% average utilisation is typical where land draws first and construction draws progressively. Margin on cost is the standard credit sanity check; most non-bank development lenders want 15–20%. Indicative only — this is not an offer of finance or personalised advice. Every deal is assessed individually, and consent status, presales, builder strength and region all move the answer.