The Broker’s Briefing
In this case study, you’ll see:
- How a 75%+ LVR — pre-DA, pre-construction — was settled in 7 days under conditions most banks would struggle to match
- Why the pre-DA window is crucial to a successful development — allowing identification of key issues, feasibility assessment, and reducing the risk of delays later in the process.
- The mechanics of GAP’s engineered structure: a 75% first mortgage paired with a 5% second mortgage, deployed alongside GAP’s Parallel Credit Processing.
- The exact timeline: Guaranteed Response within 24 hours, settled in 7 business days, the borrower’s investment and broker track record intact.
The Deal Snapshot
| Loan Amount | $1,600,000 |
| Asset Type | Development land acquisition (pre-DA, pre-construction) |
| LVR | 80% (structured as 75% 1st mortgage + 5% 2nd mortgage) |
| Location | Perth metro, WA |
| The Challenge | An 80% LVR for the acquisition with no Development Approval, settling in 7 days before the deposit was at risk. |
A $1.6M land acquisition. 80% LVR. No Development Approval. Seven days to settle before the deposit was lost. This case study shows how GAP Business Loans engineered a structured first-and-second mortgage facility, ran credit, valuation, and legal in parallel, and settled the deal in 7 business days.
The Battlefield: A 7-Day Clock on a Pre-DA Bridge
Seven days to settle. The deposit was on the line, and an experienced Perth developer — with multiple completed subdivisions behind him — needed a short-term solution to secure the site while preparing the Development Application, surveyor reports, and environmental work before transitioning to a major-bank construction facility.
Two constraints worked against the deal. The LVR sat at 80% — above the 75% ceiling most private lenders apply to land assets. And the asset was a development site: no DA, no income, no secured construction plans. The gap between site acquisition and DA approval is a capital-heavy — and usually the least bankable — phase of any development.
The Myth: The Pre-DA Window Is a Lending Vacuum for Banks
The myth — held widely across the commercial finance market — is that the pre-DA window is a lending vacuum for bank lending.
High LVR on a development site carries above-average risk; private lenders are perceived to do standard bridges or completed assets, not layered facilities at speed. When the LVR climbs above the ceiling and the asset doesn’t quite fit a clean category, brokers spend days canvassing lenders instead of working with one willing to engineer the deal as it actually is. With a 7-day clock and a deposit at risk, that delay was the obstacle the deal could not afford.
The Reality: A Structured Solution, Run in Parallel
The broker contacted GAP Business Loans and laid out the constraints: 80% LVR, development site, 7-day settlement, no DA, deposit on the line.
He was connected with Peter, our Sales & Strategy Manager. In a focused conversation, Peter assessed the commercial reality — the developer’s track record across multiple Perth subdivisions, the broker’s prior successful settlements with this client, and the specific reason the elevated LVR was being requested. GAP then applied two operational principles in concert.
First, GAP engineered a specialised facility structure: a 75% first mortgage paired with a 5% second mortgage at a higher rate. Rather than declining at the 75% ceiling — which would have forced the developer to deplete capital reserved for the DA process — GAP priced the elevated risk into the second-position lend. Terms were approved upfront, no further negotiation required.
Second, GAP deployed our Parallel Processing protocol. As a direct balance-sheet lender, GAP actions credit, valuation, and legal simultaneously — not sequentially. Within 24 hours of submission, GAP issued a formal Indicative Loan Approval. Valuation, credit assessment, and legal drafting ran concurrently from there.
The Opportunity: A Bridge Secured, a Category Reopened
The synchronised execution process provided the difference. Valuation aligned with credit parameters, legal documents were ready for immediate execution, and settlement landed inside the 7-day window.
The Proof:
- Time to Guaranteed Response: Within 24 hours
- Time to Settlement: 7 business days
- Structure: 75% 1st mortgage + 5% 2nd mortgage at higher rate (80% LVR total)
- Reputation Outcome: A multi-deal broker–developer relationship preserved with an unbroken settlement record
For the broker, the result was not just a settlement. It was the preservation of a multi-deal track record with a developer who had repaid every previous facility on time — and the proof that the pre-DA window is a category to pursue, not work around.
“Honestly, I thought 80% on a development site with a 7-day deadline would be declined everywhere — even by a private lender. I’ve settled multiple deals with this developer over the years, and I couldn’t be the one who broke that record. GAP didn’t just say yes to the LVR; they engineered the structure around what the developer actually needed — a pre-DA bridge while he gets the approvals moving. That kind of flexibility doesn’t usually come with that kind of speed.”
Ready to Move on a Tight Land Acquisition Deadline?
If you have a pre-construction land acquisition, an LVR above the standard ceiling, or a hard settlement deadline that other lenders won’t touch — GAP can give you a Guaranteed Response within 24 hours.
Book a 20-minute Credit Summit with Peter, our Sales & Strategy Manager, and get a clear, decisive path forward the same day.
Call Team GAP on 1800 99 22 75 to book your Credit Summit.