Through the magic of technology, our peer-to-peer platform and lower overheads, we're able to charge lower fees than other lenders while reducing the paperwork along the way.
We can lend up to $2 million with our own facility and up to $30 million through the banks for bigger projects.
We're on your team. Your adviser will walk you through the process giving expert advice from beginning to end.
What makes Squirrel unique is we are mortgage brokers and a mortgage lender. That means we can access the banks, as well as provide our own lending (Flexibuild) through our peer-to-peer investors.
In many cases, we can charge less than other lenders for our own development funding, not to mention our experienced advisers and processes make it easier. If it's a bigger project then we will likely find the right solution with one of the main banks.
Either way, we'll do what's right by you.
Types of funding covered
Pre-development property acquisition
Small development projects requiring less than $2 million of funding
Single house builds (Spec or turnkey)
Between 2.00% and 3.00%. (We'll quote up front once we understand the deal).
(Only applies to construction loans with progress drawdowns).
Sizes of projects
Up to $2 million of lending per project or borrower entity.
However in some cases we can fund up to $3 million.
LVR (Loan-to-value ratio)
Land only: 60%
Residential property acquisition: 70%
Spec build: 70%
Available on application
The development life-cycle is at least a year, and in most cases you'll need to funds to secure the land, well ahead of construction. When you buy a piece of land with the intention of building on it or subdividing, it's called land banking.
We can use our Squirrel funding to help you secure the land, and possibly help with the pre-development costs.
Already got resource consent?
In some instances, where developers have resource consent (and a valuation uplift) before settlement, we're able to fund land with as little as 10% cash deposit on the land acquisition.
We can provide two types of Turnkey loans:
Where a builder has an unconditional buyer for a property we will fund up to 80% of the agreed purchase price on the sale and purchase agreement (excluding GST.)
A registered valuation may not be required, saving you money. In most cases we are happy to work with the agreed price provided the buyer is unconditional and has paid a deposit.
Squirrel will fund up to 70% of a registered valuation or 70% of land at purchase price for a residential house under construction that has not yet been sold.
If you get a sale part way through, we’re happy to increase it to 80% LVR.
Pre-development and acquisition finance provides funding for the many costs that are associated with completing a development, before it starts.
We know how long it takes to work through the predevelopment process and are there to support you with funding and advice along the way.
We'll have a chat where you'll give us an overview of your position and development plan. Get in touch here
We'll get the best suited adviser to work with you on your funding strategy and plans, plus associated costs to complete the project.
This will outline the costs and the services we provide. At this point a 'commitment fee' is charged.
Once the proposal letter is signed, let the project begin! And your adviser will be alongside you for the ride.
In general, the bank will require 30-35% of cost as equity and non-banks can lend up to 75% of project value. However we have funded projects at 100%, so you might need less than you thought to get started.
Property development funding costs are determined by lots of things such as the project profitability, the location, LVR (Loan to value ratio), and the term of the loan. Typically, the costs are high for loans that carry higher risk and with a longer term. The funding costs depend on the market, and you’d expect to pay interest, an application/lender fee (including broker fee), and often a line fee.
Mezzanine finance involves the use of money from an alternative source rather than equity from the developer and senior debt from the primary lender. The interest rate on a mezzanine finance facility is usually high.
In some cases, yes. We have funded projects at 100%, but it won’t work for every project. 100% funding relies on an experienced advisor, a well thought out plan, and a solid project.