Finance question
Can I get development finance to build SDA housing?
Sometimes. Lenders treat Specialist Disability Accommodation as specialised security and value it independently, so the loan is sized off the valuer's figure, not your build cost. Non-bank construction lenders carry most of the market, and you should expect to put in substantial equity.
Get your free rate quote
Tell us a few details and we will come back with your indicative rate. No obligation.
Thanks, we are on it
Your enquiry is in. Our team will be in touch shortly with your indicative rate and next steps.
The short answer
The lender is funding the valuation, not your quote
Specialist Disability Accommodation is housing built to a national standard for NDIS participants with very high support needs, and the owner is paid a capped annual amount per resident by one funder, the NDIA. That makes it unusual security. Income stops when a participant leaves, there are few comparable sales, and the price tables are under review. So lenders value the finished dwelling independently and size the loan from that, which is why a build that costs more than the valuation leaves you funding the difference. The NDIA benchmark for the cheapest build, a one-resident villa, is $376,056 (SDA cost guide).
The build cost range is wide. The NDIA's 2023 benchmark runs from $376,056 for a one-resident Improved Liveability villa to $1,233,172 for a three-resident High Physical Support house, excluding land and GST, while Perth builders quote $2,500 to $4,000 per square metre. Across development lending, non-banks commonly fund 65 to 75 per cent of cost and private lenders up to 80 per cent at a price. For SDA, one lender guide gives indicative bands of 65 to 80 per cent of cost and 65 to 70 per cent of end value in construction. A fixed-price contract settles the real number.
Ventas is a broker, not a lender, and some lenders will say no to SDA. We find the ones that lend on it and structure the build as a construction facility followed by a refinance onto a term loan. The equity usually comes from land you own, cash or a property-backed loan on other property. We work with business-purpose borrowers such as a company or trust, and there is no upfront fee to you. Lenders will ask for a registered operator, a design-stage assessor certificate and the head lease terms.
Do you qualify?
What a lender looks at on an SDA development.
Approvals in place
Development approval and a design-stage assessor certificate before the build.
A fixed-price contract
From an SDA-experienced builder, supported by the valuation.
An operator
A registered SDA provider, ideally on a signed head lease.
Equity
Land you own, cash or other property, usually a substantial share of cost.
Why the structure matters on SDA
Construction then term
A build facility funds the stages, then a term loan refinances the finished home.
Equity can be land
Land you already own counts toward your share of cost.
Valuation sets the loan
Knowing the likely value early avoids a gap at refinance.
A worked example
A developer owns land worth $250,000 and builds a one-resident Improved Liveability villa at the NDIA benchmark of $376,056, so total cost is about $626,000 before GST and fees. At 65 per cent of cost the lender advances about $407,000, and the land covers the remaining equity of about $219,000. The final loan is still sized off the valuer's figure. Illustrative only.
Common questions
Frequently asked questions
How much does it cost to build an SDA home?
The NDIA's 2023 benchmark runs from $376,056 for a one-resident Improved Liveability villa to $1,233,172 for a three-resident High Physical Support house, excluding land and GST. A fixed-price contract gives the real number.
Will a bank lend on SDA housing?
Banks lend selectively at the strongest end. Non-bank and private lenders carry most construction funding, so a broker comparing lenders matters. Approval depends on the operator, location and valuation.
How much equity do I need for an SDA build?
Expect a substantial share. Indicative construction bands run 65 to 80 per cent of cost and 65 to 70 per cent of end value, so the rest comes from land, cash or other property.
Is SDA income guaranteed?
No. The NDIA pays only while a participant lives in the dwelling and only up to the amount in their plan. Lenders look at that risk, so a business case that depends on full occupancy is hard to fund.