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Nunawading sits along the Whitehorse Road corridor with a mix of established family homes and a great deal of newer townhouse development. The level crossing removal has reshaped the centre of the suburb considerably.
Nunawading has seen substantial townhouse development, with older homes on large blocks replaced by two, three or four dwellings. That has changed the housing mix and it brings specific lending considerations.
Smaller developments of two or three townhouses generally finance without difficulty. Larger complexes can hit lender concentration limits, where a lender caps how many dwellings it will fund within one development. Worth checking whether that ceiling has been reached before you commit to a particular property.
For owners of the large original blocks, the development potential is a genuine conversation. Funding a small townhouse development is assessed quite differently to a home loan, based on the planning permit and projected end values, and it typically requires a larger contribution than people expect.
Two or three dwellings is often construction lending. More than that moves toward development finance.
Lenders cap how many they will fund in one development. Check before you commit.
Development potential is real here. The funding is assessed on permits and end values, not current use.
Whatever stage you are at, there is a path through it. Pick the one that sounds like you.
For two or three dwellings, often through a construction loan assessed on the planning permit and the projected completed values. Beyond that, lenders generally move you to development finance, which requires a larger contribution, has different terms and may require presales. The threshold varies between lenders.
More than for a standard home loan. Where a home purchase might proceed at eighty or ninety per cent, small development funding commonly requires you to contribute thirty to forty per cent of total project cost, often satisfied by the land you already own. Every lender assesses this differently.
Not inherently, provided the development is not so large that concentration limits bite and the dwelling meets minimum size requirements, which townhouses generally do comfortably. The main thing to check is whether your preferred lender still has capacity in that specific development.
Infrastructure works affect amenity and can move values in either direction, and valuers assess recent comparable sales in context. What it means practically is that sales from before and after major works may not be directly comparable, which can make valuations a little less predictable for a period.
Book a free consultation and we will walk you through your options, what you can borrow, and what it will cost.
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Lydian Financial Services Victoria
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Copyright © LYDIAN FINANCIAL SERVICES PTY LTD 2026. All Right Reserved.