The NSW Government has opened expressions of interest for a $1 billion Pre-sale Finance Guarantee that helps developers meet lender pre-sale hurdles so projects can start sooner. The program lets government pre-commit to buy up to 50% of off-the-plan dwellings in eligible projects, with quality checks and fees built in.
What is the Pre-sale Finance Guarantee?
A five-year NSW Government program that uses a revolving $1 billion fund to satisfy lender pre-sale requirements on qualifying residential projects by committing to purchase nominated dwellings off the plan. The aim is to get shovel-ready projects moving and add thousands of homes. EOIs are open now. Applications open from October 2025, with first commitments expected late 2025.
How it works
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Government issues a renounceable commitment to purchase up to 50% of dwellings in a project. Developers can on-sell those homes to private buyers at any time, which extinguishes the commitment.
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If dwellings are not on-sold, government buys them at a discount to the independently assessed market value on completion. The minimum discount is 10%.
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Value caps: up to $2 million per dwelling. Project support between $5 million and $50 million, capped at 50% of total dwellings.
Who can apply
Projects that:
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Already have planning and development approval
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Can start construction within 6 months of acceptance
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Need pre-sales to draw down construction finance
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Are delivered by teams that meet capacity, capability and credibility benchmarks. Building Commission NSW is involved in assessment.
Fees and charges
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Application fee and establishment fee payable by the developer
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Line fee of 1% to 1.5% per annum on the outstanding commitment amount for the term of exposure. Fees recover program costs and vary by risk.
What happens to purchased dwellings
If government ends up acquiring dwellings, they may be held and rented or re-sold on the open market, depending on conditions.
Why this matters for builders
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More sites starting: Meeting pre-sale thresholds earlier helps lenders release construction finance, shortening the gap between approval and commencement.
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Workflow certainty: A pipeline of projects reduces stop-start risks. Government says the program targets thousands of homes over five years.
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Quality focus: Building Commission NSW input aims to keep poor-quality operators out.
Risks and practical considerations
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Discount and fees: Developers must factor the 10%+ discount and line fees into feasibility. That can influence specs, timelines and subcontractor pricing.
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No public spruiking: You cannot market a project as being part of the program.
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Timelines: Projects must be genuinely shovel-ready to hit the 6-month start window after acceptance.
How to apply
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Read the program page and terms and conditions
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Prepare evidence of approvals, finance position, delivery team credentials and construction start plan
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Submit an EOI via the planning portal.
Author: Steven Swan