Take-Out Finance
Unlock financial freedom at building completion with Take-Out Finance
Seamlessly refinance your construction facility into long-term finance, giving you control over holding, leasing, or staging strategies – without the rush to sell.
CONSTRUCTION LOAN REFINANCE
What is Take-Out Finance?
Take-out finance replaces your short-term construction loan once practical completion is reached. It stabilises your capital structure, extending repayment over 10–30 years with lower, fixed or variable interest. That means no more balloon payments, just predictable cashflow, and flexible hold or exit options.
Lower Interest, Longer Term
Shave points off rates and reduce refinancing risk
Cashflow Control
Stage leasing or staging without loan pressure
Stronger financing mix
Meet lender DSCR and LTC thresholds with greater comfort
Equity unlocking
Access post-completion equity for future projects or dividends
Who Is Take-Out Finance For?
Take-out finance isn’t one-size-fits-all. It’s a strategic solution for:
Property Developers
- Refinance at completion and hold the asset post-build
- Extend lease/exit time for staged leasing or strategic sale
- Exit a construction lender no longer servicing the next phase
Commercial Investors & Syndicates
- Stabilise a new development into a reliable income asset
- Replace high-interest debt with stable finance
- Unlock equity for future acquisitions or exits
Build-to-Rent (BTR) Operators
- Secure flexible terms to lease-up before exit or hold
- Manage DSCR/LVR during early occupancy
- Reduce interest rate risk through longer-term funding
Take-Out Finance: Timing, Steps & What to Expect
Step 1: Project in final stages
Begin exploring options 60–90 days before practical completion to lock in competitive terms.
Step 2: Gather documentation
Ensure you have completion certificates, leasing plans, and updated financials ready.
Step 3: Lender comparison
Assess offers from banks, non-banks, insurers, and private lenders for structure and cost.
Step 4: Finalise and settle
Get lender approval, discharge your construction loan, and activate your long-term facility with optional cash-out or staged leasing terms.
Tools to help you choose
Why Partner with Alpha1 Financial Solutions?
We understand that take-out finance is more than just a transaction, it’s a strategic turning point in your project’s lifecycle. At Alpha1 Financial Solutions, we bring:
Deep Lending Expertise
Commercial finance and legal experience to guide you through structures, covenants, and timing without the red tape of banks.
Strategic Guidance
We tailor finance to match your goals, whether you’re holding, selling, or preparing your next build.
Strong Lender Network
Our panel includes banks, non-banks, and private lenders – matched to your asset type and exit timeline.
End-to-End Support
From assessment to settlement, we manage documents, negotiations, and staging with seamless execution.
Secure your next stage with a free strategy call
We’ll help you map your timeline, compare lenders, and coordinate your refinance or staging process from start to finish, so you can move forward with clarity and confidence.Book your free, no-obligation call with one of our specialists today.
FAQs
FAQs about Take-out Finance
What is take-out finance in property development?
Take-out finance is a type of long-term loan used to replace a short-term construction facility once a project reaches practical completion. It allows you to hold, lease, or sell the asset without pressure to exit immediately.
Does take-out finance include equity release?
Yes, in many cases you can access equity as part of your take-out facility. This is common when the completed asset has increased in value compared to its construction cost.
Can I refinance my construction loan with take-out finance?
Yes. Take-out finance is commonly used in Australia by developers, BTR operators, and investors to refinance construction loans into longer-term facilities, often with better rates and terms.
What documents do I need for take-out finance?
You’ll usually need:
- Practical completion certificate
- Final valuation or appraisal
- Pre-leasing schedule (if applicable)
- Updated financial statements
- Evidence of builder sign-off or occupancy permit
