The NSW Government has established the Pre-sale Finance Guarantee to accelerate the delivery of housing across the state, ease current supply challenges and provide greater certainty for the housing development industry.
Under the new program, the NSW Government will commit to purchasing off-the-plan dwellings in eligible residential developments to help developers secure finance lenders’ approval and commence construction sooner.
A growing number of residential projects with development approval are unable to proceed to construction due to a shortfall in pre-sales required to satisfy lenders' pre-conditions for funding.
The NSW Government’s strong credit standing will provide financial institutions with the confidence they need to lend and get residential projects underway.
By committing $1 billion to the program, the Government will satisfy lender pre-sale requirements on eligible projects, ensuring more homes can be delivered faster.
The program aims to fast-track the delivery of thousands of new homes over the next 5 years, support the creation of thousands of direct and indirect jobs, and help attract talent and develop skills for the ongoing success of the residential construction sector in NSW.
Expression of interest
Expressions of interest to participate in the Pre-sale Finance Guarantee program are now open.
Developers with shovel-ready housing projects are invited to apply. Please familiarise yourself with how the program works and eligibility requirements before submitting your expression of interest. See terms and conditions (PDF, 85 KB) (updated 16 October 2025).
If you would like to arrange a pre-lodgement meeting with our team, please email [email protected]
How it works
The Pre-sale Finance Guarantee is structured as a renounceable commitment to purchase nominated dwellings in eligible residential projects in NSW.
To satisfy the lender(s) pre-sale requirements, the NSW Government will commit to the purchase of up to 50% of dwellings in qualifying residential projects.
To qualify for the program, developers will need to pass through the Government’s application assessment process that will consider the merits of the project and the capacity, capability and credibility of the developer and their delivery team.
The Government’s commitment to acquire dwellings will be at a discount to each dwelling’s independently assessed market value on completion. The discount will be at a minimum of 10% of the market value, but the discount may be higher subject to the assessment of the project and the dwellings.
Subject to approvals, the Government may commit to the purchase of:
- individual dwellings with a market value of up to $2 million
- dwellings with an aggregate value of between $5 to $50 million, capped at a maximum of 50% of the number of dwellings in a single residential project.
The Pre-sale Finance Guarantee application process follows a typical construction finance application and credit assessment process, indicatively as follows:
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Step 1
Planning and development approval must be held and construction must be capable of commencement within 6 months of approval.
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Step 2
If the developer's lender(s) requires pre-sales for the developer to draw down on construction funding, the developer can apply for Government support under the Pre-sale Finance Guarantee program.
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Step 3
The Government will assess the merits of the project and the capacity, capability and credibility of the developer and their delivery team.
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Step 4
If indicatively approved, the Government will advise the developer of commitment terms, including which dwellings in the project will be acquired, and the pre-agreed price (discount to valuation) at which the Government will purchase the dwellings.
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Step 5
If the developer and their lender agree to the terms proposed, the commitment will be formally documented, legal agreements exchanged and the Government’s obligation to purchase the dwellings formalised, enabling construction to commence.
The Government's commitment to acquire dwellings will be renounceable by the developer, allowing the developer to on-sell dwellings to private purchasers at any time at full market price.
Ultimately, the Government expects that dwellings will be on-sold to the private market prior to, or at, completion of the dwellings. If the developer is unable to on-sell the dwellings beforehand, the Government will purchase these dwellings once built and ready for occupation.
Fees
Developers applying for Pre-sale Finance Guarantee support will be required to pay:
- an application fee
- an establishment fee
- if approved, a line fee calculated on the quantum of the Government's financial commitment to the project.
Fees have been determined to recover the Government’s cost of offering and administering the program and are adjusted for the assessed risk which will vary from project to project.
Fees and charges schedule – 2025–26 financial year
Fee payable on lodgement of an application.
| Fee | Basis of fee quantum |
|---|---|
| $20,000 | Proposed commitment of $5–10 million |
| $25,000 | Proposed commitment of $10–25 million |
| $30,000 | Proposed commitment of $25–40 million |
| $40,000 | Proposed commitment of $40–50 million |
The application fee:
- is calculated based on the amount of the proposed commitment sought by the applicant
- is payable on acceptance of the invitation to submit an application
- covers the program’s costs to procure an independent valuation and due diligence costs
- is non-refundable regardless of the outcome of the assessment
- is GST inclusive
- is payable at time of submitting application; if not received the application is unable to proceed.
Fee payable on acceptance of the letter of offer.
| Fee | Basis of fee quantum |
|---|---|
| $20,000 | Commitment of $5–10 million |
| $30,000 | Commitment of $10–25 million |
| $40,000 | Commitment of $25–40 million |
| $50,000 | Commitment of $40–50 million |
The establishment fee:
- is calculated on the size of the commitment offered by the program to the applicant
- is payable on acceptance of the Letter of Offer, in advance of the program executing pre-sale commitments
- covers program administrative and legal costs
- is GST inclusive
- is non-refundable.
The applicant is responsible for their own legal and other costs incurred in the application process.
Commitment usage fee is 1% to 1.5% per annum.
The line fee:
- will be calculated at between 1% to 1.5% per annum on the outstanding commitment amount
- the line fee is not a margin on top of the Bank Bill Swap Rate (BBSW) or other lending base rates. It is calculated on the outstanding program commitment on a monthly basis. If developers using the program are able to sell down the stock subject to the Government’s commitment over the life of the project, the quantum of the line fee will reduce accordingly
- will be determined at the discretion of the program; the rate will be advised in the program’s letter of offer issued to the applicant to confirm approval of the commitment including the dwellings in respect to which pre-sales contracts will be executed and the program’s assessment of the value and discount applied to the dwellings
- is GST inclusive.
Frequently asked questions
During the Housing Accord period, NSW is expected to deliver 377,000 new homes. The NSW Government has worked hard to reform the planning system, speed up assessment timeframes and streamline the approval process for development applications. However, commencement and completion rates are below the levels required to satisfy demand.
With the private residential sector expected to deliver 90% of the homes during the Accord period, the NSW Government is addressing issues that are holding up the delivery of homes.
Developers’ ability to secure financing has been identified as one of the constraints on housing supply. Many homes have planning approval and are ready for construction, however, without sufficient finance, they will not be built.
By providing a commitment to purchase dwellings off-the-plan in qualifying projects, the Pre-sale Finance Guarantee will help unlock finance lenders' approvals to bring projects that are development-ready forward for construction.
The Pre-sale Finance Guarantee application process follows a typical construction finance application process, indicatively as follows:
- If the developer needs pre-sales to be able to commence their project, they can apply for NSW Government support under the Pre-sale Finance Guarantee program.
- The Government will assess the merits of the project and the capacity, capability and credibility of the developer and their delivery team.
- If approved, the Government will determine which dwellings will be purchased, and what the pre-agreed price is.
- If the developer and their lender agree to the terms proposed, the commitment will be documented to formalise the Government’s commitment, enabling the pre-sale condition to be satisfied and construction to commence.
- It is expected that construction will begin within 6 months of acceptance into the program.
To be eligible to apply to the program:
- the development must be in NSW
- planning and development approval must be held, and construction must be capable of starting within 6 months of approval into the program
- the developer’s lender(s) must require pre-sales for the developer to draw down on construction funding
- the development must include some individual dwellings with a market value of up to $2 million (the program will only commit to purchase individual dwellings with a market value of $2 million or less).
If, following the initial Expression of Interest, an applicant is invited to submit a formal application, the Government will assess the merits of the project and the capacity, capability and credibility of the developer and their delivery team.
Subject to approvals, the program may commit to the purchase of dwellings with an aggregate value of between $5 million to $50 million, capped at a maximum of 50% of the number of dwellings in a single residential project.
No. The Government will not pay a deposit for the dwelling(s) it is committing to purchase. Part of the approval and legal documentation process will involve ensuring the developer’s lender is comfortable the Government’s pre-commitment satisfies their pre-sale requirement.
Yes. The NSW Government’s commitment to acquire dwellings will be renounceable, allowing the developer to on-sell dwellings to private purchasers.
If the Government’s commitment to acquire a dwelling is renounced by the developer, subject to approval by their lender, the commitment is extinguished and does not transfer to other dwellings being developed.
Ultimately, the Government expects the dwellings will be on-sold to the private market prior to, or at, completion of the dwellings. If the developer is unable to on-sell the dwellings, the Government will purchase these homes once they are built and ready for occupation.
No. Any commitment to pre-sales under the Pre-sale Finance Guarantee program is not an indication the Government is backing or partnering in the development.
Although due diligence is undertaken on projects and developers, the purchase commitment of dwellings in a project off-the-plan does not mean the Government is endorsing, guaranteeing, or providing a warranty in relation to the quality, delivery or financial outcome of the development.
To avoid any misinterpretation, the developer, or anyone acting on their behalf, is not permitted to disclose to potential purchasers, or in any sales and marketing material, that the property is part of the Pre-sale Finance Guarantee program.
Expressions of interest are now open.
It is anticipated applications for approved housing developments will be accepted from October 2025, with the first commitments expected to be issued from late 2025.
This program is proposed to be open for applications for up to 5 years.
If dwellings are acquired as part of the Pre-sale Finance Guarantee program, the NSW Government will have the option to hold and rent the dwellings, or to re-sell them on the open market. A decision will be made subject to a range of factors, including prevailing market conditions.
The Pre-sale Finance Guarantee commitment to an individual project will be between $5 million and a maximum of $50 million, capped at a maximum of 50% of the dwellings in the project.
Yes. The maximum value per dwelling that the Government can commit to is $2 million, based on the Government’s valuation of the property. This value has been determined because the aim of the program is to increase the supply of mid-range and affordable homes across NSW.
If a project does not have any properties valued at, or below, $2 million, it will not qualify for the program. The project must have a sufficient number of dwellings valued under $2 million to meet the minimum and maximum commitment limits.
No. The NSW Government will engage Value NSW to complete a valuation of dwellings proposed to be subject to pre-commitments under the Pre-sale Finance Guarantee program. The values generated by Value NSW may differ from the list prices. In these cases, the developer will be presented with values generated and has the right not to accept the Government’s support and withdraw the application.
The Pre-sale Finance Guarantee program has been developed to get more residential projects started sooner and deliver more residential dwellings faster. It has not been developed to transfer construction and residential market risk from the developer to the NSW Government.
The discount applied to the Government’s commitment provides the developer with the incentive to continue to sell dwellings to private purchasers.
Yes. Fees will be charged to developers to access the Pre-sale Finance Guarantee.
There will be a one-off application fee to cover the costs of assessment and valuation; a one-off establishment fee payable on acceptance of the offer, and; an ongoing line fee payable by the developer for the term of the NSW Government's exposure.
A line fee is a charge levied for the pre-sale commitment and is calculated at a pre-determined annual percentage rate against the NSW Government’s outstanding financial exposure.
The NSW Government is not assuming any development risk in qualifying projects. If dwellings are not completed as required under the relevant agreements, then the Government will cancel the agreement subject to the conditions enabling this being met.
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Disclaimer: The information on this page is general in nature and subject to change.
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More information
If you have further questions about the Pre-sale Finance Guarantee program, email [email protected]