WiZDOM Loans – Construction Finance – 16th April 2025

In this webinar, Andrew Kubenk from Wizdom Loans delivers a comprehensive breakdown of construction and development finance, tailored specifically for property investors navigating the jump from residential builds to more complex commercial projects.

Whether you’re planning a simple duplex or a multi-townhouse development, Andrew demystifies the lending landscape with real-world insights, essential rules of thumb, and clear distinctions between funding types. He also shares key strategies to improve borrowing power, avoid common pitfalls, and present professionally to lenders—arming attendees with both the mindset and the mechanics needed to fund their next successful deal.

Residential vs. Commercial Finance
Andrew begins by explaining that residential construction loans are built around the “mum-and-dad” home-build model: up to 80% of the completed valuation, with 15–25% of total development costs in cash or equity. Lenders expect you to build & hold, servicing the debt long term through rental income. In contrast, commercial/development loanscover just 65–70% of total costs, require a 35% equity injection, and assume you’ll build & sell, repaying the debt upon completion.

Progress Payments & Quantity Surveyors
Unlike standard home loans, development finance releases funds in progress payments—deposits, slab, lock-up, fittings and practical completion—based on independent sign-off by a Quantity Surveyor. That professional verifies each construction stage and confirms how much financing remains available, protecting both borrower and lender as the project unfolds.

Professional Strategy & Wizdom Central
Andrew stresses a strategic lending approach: think beyond the single deal and plan how today’s project positions you for tomorrow. He recommends keeping all financials up-to-date, involving your broker early, and presenting professionally—organized folders, clear feasibility, correct entity structures. Wizdom Central, the community’s online dashboard, streamlines this: pulling valuations, rental estimates, borrowing-capacity simulations, equity trackers and secure document sharing into one platform.

Next Steps
To explore how construction or development finance might work for you, set up your Wizdom Central account and request a Finance Strategy Review. For quick questions, email loans@wizdom.com.au or use the in-platform chat. With the right tools, insights and professional support, you’ll be ready to turn your next build or development into a smooth, well-funded success.

Action Items

• Complete a finance strategy review with Wisdom.
• Email questions to loans@wisdom.com.au.
• Set up a Wizdom Central account to access financial tools and reporting.