Residual stock loan calculator
Estimate the release amount and per-unit debt on a residual stock loan against completed, unsold stock.
Estimated results
What these figures mean.
Residual stock loans fund the unsold units left over once a development completes — the loan is secured against the completed, unsold stock rather than the land or construction contract. Enter the number of unsold units, the average value per unit (typically from valuation or recent sales in the project), the LVR a lender will fund to against that stock, and any existing debt still owing against it.
Total value is units multiplied by average value; maximum debt applies the LVR to that total; release amount is what is available once existing debt is repaid, and debt per unit shows roughly how much of the facility sits against each unit — useful when working out how much needs to sell before the facility is repaid in full. Valuers and lenders typically apply a discount to bulk or as-is-complete stock rather than individual retail values, so treat the average value you enter as a considered, conservative figure rather than a list price. Residual stock facilities are arranged through banks, private lenders, non-bank lenders and specialist funds, priced against the stock's saleability, location and the developer's track record, and every facility is assessed on its own terms.
Residual stock loans — questions we are asked.
Is the average value per unit the same as the listed sale price?
No — lenders typically apply a discount to reflect bulk or as-is-complete value rather than individual retail asking prices. Use a conservative, valuation-based figure.
Can a residual stock loan replace the original construction facility?
Often, yes — it is commonly used to refinance out of a construction facility once practical completion is reached and stock remains unsold.
Does the LVR change as units sell?
The facility is typically reduced as each unit sells and a release amount is repaid, so the position against the remaining stock is reassessed as the pool shrinks.
What if some units are under contract but not yet settled?
Treat contracted-but-unsettled units separately in your own workings; lenders generally look at each unit's status individually when assessing the remaining exposure.