Compare property development finance from a panel of NZ banks and non-bank specialists — drawdowns, presales and exit structures.
Last updated 8 June 2026 · By MoneyGuru Editorial Team
NZ national median residential sale price
REINZ's Monthly Property Report tracks the national median sale price. Development feasibility hinges on the gap between build cost and end-value — every small movement in the median moves the maths.
Source: Real Estate Institute of New Zealand (REINZ) · REINZ Monthly Property Report · verified 2026-06-09
A panel of New Zealand development lenders we compare
A short profile of each NZ development lender on our panel.
Major bank development funder
Strengths
Considerations
Suited to: Established developers with proven track record.
CommBank Group NZ
Strengths
Considerations
Suited to: Developers wanting bank-tied funding with offset facility.
NAB-owned bank
Strengths
Considerations
Suited to: BNZ commercial customers building or developing.
Australian-owned bank
Strengths
Considerations
Suited to: Westpac commercial customers with development pipeline.
Non-bank specialist lender
Strengths
Considerations
Suited to: Developers needing alternatives to banks or faster decisioning.
Side-by-side lender features at a glance.
| Lender | Distribution | Construction drawdown | Presale required | Exit structure | Track record support |
|---|---|---|---|---|---|
| ANZ | Bank-tied | Yes | Common | Standard P&I or IO | Established |
| ASB | Bank-tied | Yes | Common | Standard P&I or IO | Established |
| BNZ | Bank-tied | Yes | Common | Standard P&I or IO | Established |
| Westpac | Bank-tied | Yes | Common | Standard P&I or IO | Established |
| Heartland | Broker | Yes | Negotiable | Standard P&I or IO | Specialist |
Four steps before signing.
Get the QS feasibility done early. Banks and non-banks both need it to assess the deal.
Bank = cheaper rate, slower, firmer requirements. Non-bank = faster, more flexible, higher cost.
Sale vs retain-and-refinance. Different exit changes structure and lender appetite.
Development finance is broker-distributed for a reason. The structuring matters more than the headline rate.
Property development finance funds residential or small commercial construction projects from land purchase through to completion. Funds are released in drawdowns as construction milestones are signed off, with repayment from end-of-project sale or refinance to a standard mortgage. Banks dominate larger and lower-risk deals; non-bank specialists compete on smaller projects, faster timing and cases banks decline.
Compare the all-up cost (rate plus line fees, arrangement fees and quantity-surveyor cost), the presale requirements, the equity required, and the exit flexibility. Use a specialist commercial broker who has placed development deals before — structuring matters more than the headline rate.
A short questionnaire — typically takes about two minutes.
Your enquiry is sent to Evolve Group Limited (FSP711891), our partner Financial Advice Provider.
The adviser sources quotes across a panel of NZ insurers or lenders and walks you through the options.
No obligation to apply, switch or buy. You decide whether to proceed.
Lending designed for residential or small commercial construction. Differs from a standard mortgage in structure — drawdowns released as construction milestones are reached, repayment from end-of-project sale or refinance to standard mortgage, and additional security against the land.
Banks (ANZ, ASB, BNZ, Westpac) dominate the larger commercial deals. Non-bank specialists (Heartland and others) compete on smaller projects, faster turn-around, and cases banks decline. Choice usually depends on developer experience and project size.
Banks typically require presales (signed contracts on unbuilt units) to cover a meaningful percentage of the GDV before drawdown. Non-banks may be more flexible but charge a higher rate. Presale requirements vary by project type and lender.
The loan is released in tranches as construction milestones are signed off by a quantity surveyor or independent assessor. Interest is only charged on funds drawn. Drawdowns reduce as the project progresses.
Development loans are short-term (typically 12-24 months) — repaid by selling completed units or refinancing to a standard investor mortgage on retained stock. Lenders want a clear exit at the start of the deal.
Banks typically require a meaningful equity contribution to the total project cost. Non-banks can accept lower equity for higher rate. Specific requirements vary widely by deal.
Possible but harder. Banks prefer track record. First-time developers often start with non-bank specialists or partner with an experienced developer. A quantity surveyor sign-off and conservative budget help.
Use a specialist commercial broker who has placed development deals across banks and non-banks. Compare the all-up cost (rate + line fees + arrangement fee + valuation), the presale requirements, and the exit flexibility.
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How we research and compare each vertical.
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