The Pre-sale Finance Guarantee accelerates the delivery of housing across the state, easing current supply challenges and provides greater certainty for the housing development industry.
Under the Pre-sale Finance Guarantee, the NSW Government commits to purchasing off-the-plan dwellings in eligible residential developments to help developers secure lenders’ finance approval and commence construction sooner.
The program addresses an issue in which 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 provides financial institutions with the confidence they need to lend and get residential projects underway.
The Pre-sale Finance Guarantee will fast-track the delivery of thousands of new homes over the next 5 years through its $1 billion revolving fund. It will also support the delivery of affordable housing through targeted support for registered not for profit Community Housing Providers, with $80 million available under the program at any single point in time. Fast tracking construction will 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
Developers with shovel-ready housing projects can submit an expression of interest after familiarising themselves with how the program works and eligibility requirements. See terms and conditions (PDF, 85 KB).
If you would like to arrange a pre-lodgement meeting with our team, email [email protected]
How it works
To satisfy lender pre-sale requirements, the Government will commit to the purchase of up to 50% of dwellings in qualifying residential projects to a maximum of $50 million per project.
The commitment limit increases to up to 75% for projects with less than 20 dwellings and 100% for registered Community Housing Providers for affordable dwellings, with the maximum capped at $30 million per project for these smaller and affordable housing projects.
Projects must have at least 4 homes and only individual dwellings with a Pre-sale Finance Guarantee commitment value of up to $2 million, or up to $2.5 million for homes with 3 or more bedrooms, are eligible for support. The commitment will be based on the amount the Pre-sale Finance Guarantee will pay to acquire the dwelling after the program discount has been applied to its market value.
To qualify, developers need to pass through the Government’s application assessment process which considers the merits of the project and the capability, capacity and credibility of the developer and their delivery team.
The Government’s commitment to acquire dwellings is at a minimum 10% discount to each dwelling’s independently assessed market value.
The discount applied is determined during the formal application assessment process.
The minimum 10% discount does not apply to affordable dwellings delivered or acquired by registered not-for-profit community housing providers.
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Step 1
Planning and development approvals must be held to show construction commencement is achievable within 6 months. This includes draft complying development certificates (where applicable).
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Step 2
Lender(s) indicative finance approval must be held outlining pre-sale requirements that must be met before construction funding can be drawn down.
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Step 3
The developer submits an expression of interest for the Pre-sale Finance Guarantee. The Government assesses the merits of the project and the capability, capacity and credibility of the developer and their delivery team. Pending the assessment outcome, the developer may be invited to submit a formal application to the program.
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Step 4
The developer submits a formal Pre-sale Finance Guarantee application and pays the application fee. An initial meeting is arranged with the Pre-sale Finance Guarantee team, the applicant, lender and any other relevant parties to discuss next steps.
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Step 5
If indicatively approved, the Government advises the developer of commitment terms, including which dwellings in the project will be acquired, and the pre-agreed price (once the program discount is applied) at which the Government will purchase the dwellings.
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Step 6
If the developer and their lender agree to the terms proposed, the developer accepts the offer and pays the establishment fee. Legal agreements are then exchanged and the Government’s obligation to purchase the dwellings formalised, enabling construction to commence. Read the Overview of Legal Documents – Pre-sale Finance Guarantee (PDF, 105 KB) and see the Pre-sale Finance Guarantee – Legal Template Documents (PDF, 762 KB).
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Step 7
The Pre-sale Finance Guarantee team will monitor the progress of the development to ensure program requirements are achieved, including substantial construction commencement within 6 months of entering formal contracts, and the developer is actively marketing the dwellings for sale.
Developers can on-sell at any time
The Government's commitment to acquire dwellings is renounceable by the developer, allowing them to on-sell dwellings to private purchasers at any time at full market price. The developer may also renounce commitments by on-selling other dwellings in the development, or securing a residual stock loan on completion of the project.
Ultimately, the Government expects 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 ready for occupation.
Performance to date
| Project location | Pre-sale Finance Guarantee commitments | Direct dwellings supported | Total dwellings enabled | Project status |
|---|---|---|---|---|
| Rozelle | $38,835,000 | 32 | 227 | Construction commenced |
| Pyrmont | $49,837,050 | 38 | 285 | Contract stage |
| Westmead | $8,964,360 | 13 | 30 | Ready to commence construction |
| Orange | - | - | - | Support not required at this stage |
| Orange | $6,003,000 | 5 | 21 | Construction commenced |
| Auburn | $24,861,388.50 | 30 | 249 | Contract stage |
| Rhodes | $50,791,500 | 34 | 401 | Contract stage |
| Totals | $179, 292, 298.50 | 152 | 1,213 |
*Performance to date table last updated: 21 July 2026.
Fees
There is no fee for submitting an expression of interest.
Developers formally applying for Pre-sale Finance Guarantee support will be required to pay:
- an application fee
- an establishment fee, and
- if approved, a monthly line fee calculated on the total 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 – 2026–27 financial year
Fee payable on lodgement of an application.
| Fee | Proposed commitment value |
|---|---|
| $10,000 | Under $5 million |
| $20,000 | $5–10 million |
| $25,000 | $10–25 million |
| $30,000 | $25–40 million |
| $40,000 | $40–50 million |
The application fee is:
- calculated based on the amount of the proposed commitment (how much the developer is seeking in pre-sale commitment to draw down construction funds)
- payable within 10 business days of the date of the formal invitation to apply; if not received, the application is unable to proceed
- covers administrative and independent valuation costs
- GST-inclusive
- non-refundable regardless of the outcome of the assessment.
Fee payable on acceptance of the letter of offer.
| Fee | Commitment offered |
|---|---|
| $10,000 | Under $5 million |
| $20,000 | $5–10 million |
| $30,000 | $10–25 million |
| $40,000 | $25–40 million |
| $50,000 | $40–50 million |
The establishment fee is:
- calculated on the size of the Pre-sale Finance Guarantee commitment offered to the applicant
- payable within 10 business days of the date of the letter of offer, in advance of executing legal documents for commitments
- to cover administrative and legal costs
- GST-inclusive
- non-refundable.
The applicant is responsible for their own legal and other costs incurred in the application process.
The line fee is:
- calculated at between 1% to 1.5% per annum based on the assessed risk, which will vary project to project
- not a margin on top of the Bank Bill Swap Rate (BBSW) or other lending base rates
- calculated monthly on the outstanding balance of the project commitment. As individual sites are on-sold, and Government contracts renounced, the total of the line fee will reduce accordingly
- determined at the discretion of the Government. The rate is advised in the letter of offer which outlines the commitment terms
- GST-inclusive.
Case studies
The Rozelle Village Development was the Pre-sale Finance Guarantee’s inaugural supported project, with commitments finalised in January 2026.
Located at 138–152 Victoria Road, Rozelle, the project transforms a long derelict Inner-West site into a vibrant residential precinct delivering both market and affordable housing.
Project snapshot
- 227 dwellings in total, comprising 168 market and 59 affordable homes
- 32 affordable homes underwritten by the Pre-sale Finance Guarantee
- $38.8 million pre-sale commitment.
The Pre-sale Finance Guarantee as a critical enabler
With program backing, early works began promptly, reducing project risk and allowing the developer to start construction 6 months earlier than would have been possible under the traditional pre-sale approaches.
“PERIFA recently received approval to participate in the NSW Government Pre-Sale Finance Guarantee program on our ~$800m mixed-use Rozelle Village project. The process to secure approval was comprehensive but with the assistance of the team at DPHI was approved in a short amount of time. The approval has allowed us to access funding earlier than without the assistance of the program which has enabled us to accelerate construction to deliver much needed housing, affordable housing and community facilities faster. The program has genuinely assisted us to progress the works on this project and we are currently considering applications for our new development opportunities.”
Fabrizio Perilli – Group MD, PERIFA
Ploughmans Lane, Orange, is one of the first regional projects supported by the program.
Located at 1–28 Clontarf Close, Ploughmans Lane will provide much-needed housing for this growing region and support local industries, including tourism, education, mining and viticulture.
Project snapshot
- 21 dwellings total (plus one reserve), low-density housing estate
- 5 homes underwritten by the Pre-sale Finance Guarantee
- $6 million pre-sale commitment.
Enabling faster delivery of much-needed housing
Program support has allowed the developer to accelerate the delivery of houses in this well-established and in-demand area of Orange.
“We are delighted with the successful outcome delivered by the innovative Pre-sale Finance Guarantee program and that our Clontarf Close project is one of the first approved in regional NSW. This initiative enables us to double the delivery rate of houses this year at our Clontarf Close project, providing a much-needed boost to regional housing supply.”
Scott Anderson, Director, Ploughmans Lane Pty Ltd
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 and meet lender requirements to draw down construction funding has been identified as one of the constraints on housing supply. Many homes have planning approval and are ready for construction, however, without access to construction funding they will not be built.
By providing a commitment to purchase dwellings off-the-plan in qualifying projects, the Pre-sale Finance Guarantee unlocks lender 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, 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.
- The Government assesses the merits of the project and the capability, capacity and credibility of the developer and their delivery team.
- If approved, the Government determines which dwellings will be purchased and the pre-agreed price.
- If the developer and their lender agree to the terms proposed, the commitment is documented to formalise the Government’s commitment, enabling the pre-sale condition to be satisfied and construction to commence.
- It is expected that substantial construction commencement will be achieved within 6 months of entering legal contracts.
To be eligible to apply:
- the development must be in NSW
- the developer’s lender(s) must require pre-sales for the developer to draw down on construction funding (an indicative term sheet must be held)
- planning and development approval must be secured for the project and individual dwellings, when applicable (such as Complying Development Certificates)
- substantial commencement of construction must be achievable within 6 months of entering formal contracts for Pre-sale Finance Guarantee commitments
- the development must have a least 4 homes
- only dwellings with a Pre-sale Finance Guarantee commitment value of up to $2 million, or up to $2.5 million for homes with 3 or more bedrooms, are eligible for support. The commitment is calculated based on the discounted purchase price payable by the Pre-sale Finance Guarantee
- the total amount of commitment required must be less than $50 million.
No. The expression of interest stage is an initial review to assess project eligibility to apply for the program.
The Pre-sale Finance Guarantee team will review expressions of interests and invite eligible projects to formally apply. If the eligibility requirements are not met, for example a lender’s term sheet is not secured or the development is not construction-ready, an expression of interest may be declined and the applicant invited to resubmit when criteria is met.
Legal obligations begin once formal legal documentation is executed by all relevant parties.
The Government assesses the merits of the project, and the capability, capacity and credibility of the developer and their delivery team:
- Capability: track record of the developer and their delivery team.
- Capacity: capacity to successfully deliver the project, including access to funding, having the necessary approvals, and the experience of the delivery team.
- Credibility: the history and character of the developer and builder.
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 is renounceable by the developer, allowing them to on-sell dwellings to private purchasers if they can.
The developer may also wish to renounce commitments if they have sold enough other dwellings in the development to meet lender pre-sale requirements or they secure a Residual Stock Loan on completion of the project.
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.
The Government may look to promote a Pre-sale Finance Guarantee commitment to a developer’s project.
Any commitment to pre-sales under the Pre-sale Finance Guarantee is not an indication the Government is backing or partnering in the development and cannot be promoted as such.
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 promote acceptance into the Pre-sale Finance Guarantee as any indication of endorsement or warranty of the development itself.
The program is anticipated to run from October 2025 to September 2030.
If dwellings are acquired as part of the Pre-sale Finance Guarantee, 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.
To be eligible, the development must deliver a minimum of 4 dwellings. The maximum that can be applied for is:
- $50 million per project and the commitment must not exceed 50% of the number of dwellings in developments with more than 20 dwellings
- $30 million per project and the commitment must not exceed 75% of the number of dwellings in developments with less than 20 dwellings
- $30 million per project for up to 100% of dwellings in affordable housing projects being delivered by registered not-for-profit Community Housing Providers (the program can support up to $80 million in commitments for affordable housing projects at any single point in time).
Yes. The maximum value per dwelling that the Government can commit to is $2 million for dwellings with less than 3 bedrooms, and $2.5 million for dwellings with 3 or more bedrooms, based on the Government’s valuation of the property. This value has been determined because the program’s aim 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 these values, it will not qualify.
No. A Pre-sale Finance Guarantee application can only apply to the stage ready to be delivered within 6 months.
If a subsequent stage becomes ready to be delivered, and it is also subject to lender pre-sale requirements, a new application can be submitted. This is provided that the level of commitment needed for the total development does not exceed the program’s $50 million maximum per project, or more than 50% of the number of dwellings in the development.
For example, a developer could apply for a $20 million commitment for stage 1. Once stage 1 is completed and stage 2 is ready to deliver (and is subject to lender pre-sale requirements), a new application may be submitted for a commitment of up to $30 million, provided the 50% cap on the total number of homes in the project has not been exceeded.
No. The NSW Government will engage Value NSW to complete a valuation of dwellings proposed for the Pre-sale Finance Guarantee commitment. 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 not proceed with the application.
The Pre-sale Finance Guarantee 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 are charged to developers who formally apply and access the Pre-sale Finance Guarantee.
There is a one-off application fee to cover the costs of assessment and valuation; a one-off establishment fee payable on acceptance of the letter of offer, and; an ongoing line fee payable by the developer for the term of the NSW Government's 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.
The program can commit to acquiring 100% of affordable dwellings in projects delivered or acquired by registered not-for-profit community housing providers up to a maximum of $30 million per project.
The Government’s requirement to acquire dwellings at a minimum 10% discount to their independently-assessed completed market value does not apply to these homes.
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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]