Finance
Development exit finance explained
Development exit finance replaces a construction facility once a project reaches completion. It gives the developer time to sell or lease remaining stock rather than rush sales to meet a maturity date. Lenders assess the completed value and the sales plan.
Written by Richard Goodwin, Founder and author, PrivetReviewed by Privet Team, Editorial review team, PrivetLast reviewed 23 October 2026
Why developers use it
- The construction loan matures before stock is sold
- Pre-sales have fallen over or settled slowly
- The developer wants to hold stock for better prices
- Exit finance may cost less than an extended construction facility
Refinancing a completed project
A completed development refinance, sometimes called property development refinance, repays the construction lender. Developers who need to refinance completed development stock, or arrange a property development debt refinance, should start well before the construction loan matures.
How development exit loans are structured
| Feature | Typical approach |
|---|---|
| Security | First mortgage over unsold lots |
| Repayment | Release price paid on each sale |
| Interest | Often capitalised or prepaid |
| Term | Short, matched to the sell-down |
Short-term developer finance
Short-term developer finance and property developer bridging finance cover gaps while stock sells or a longer facility is arranged. Expect an as-is valuation and a realistic sales plan. See residual stock finance for the sell-down side.
For brokers
Brokers placing exit deals should send the occupancy certificate, valuation, sales schedule and construction loan statement up front. See private lending for brokers.
Frequently asked questions
When should I arrange exit finance?
Well before the construction loan matures, ideally as practical completion approaches.
Do I need an occupancy certificate?
Most lenders want completion evidence such as an occupancy certificate before funding.
Is exit finance cheaper than construction finance?
It can be, because construction risk has gone, but it depends on the lender and the stock.
Can unsold stock be leased?
Sometimes. Leasing changes the risk profile, so confirm with the lender.
Does Privet provide exit loans?
No. Privet is not a lender. You can send one enquiry to finance providers.
For brokers
Placing this type of deal for a client? Read private lending for brokers.
Related guides
- Residual stock finance for developers
- Construction and development finance
- Completed stock sale
- Development site exit
Glossary: practical completion, end debt, exit strategy
Run the numbers
Test cost and timing with the matching calculator before you speak to anyone. Then send one enquiry to finance providers.
Cite or share this guide
Privet (2026). Development exit finance explained. Retrieved from https://privet.com.au/finance/development-exit-finance
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