Pallas Capital lends from $1 million to companies and trusts, outside consumer credit law
Pallas Capital is a non-bank property lender for investors and developers who borrow through a company or trust. Its loans start at $1 million, are interest only and run up to five years.
Pallas lends to companies and trusts, never to individuals
Pallas Capital lends only to companies and trusts, and only for business or investment purposes. Its documents say it cannot lend to individuals and its loans are not for personal, domestic or household purposes.
That keeps its loans outside the National Credit Code. The Code covers credit to a person or a strata corporation for household purposes, or to buy, renovate or improve residential investment property.1 A company is neither.
Pallas says so plainly: "The consumer credit protections in the National Credit Code do not apply."2 The loan contract sets the terms; read it before signing.
Seven loan types follow a property from bare land to finished stock
Pallas offers seven loan types, covering a property from vacant land and pre-development through construction to finished stock and long-term investment.
Pallas Capital's loan types
| Loan type | What it is for | Loan size | Max LVR | With a second mortgage | Max term |
|---|---|---|---|---|---|
| Investment (residential or commercial) | Buy, refinance or release equity from income-producing property | $1m–$35m | 75% to $7.5m; 70% above | 75% above $7.5m | 60 months to $7.5m; 36 above |
| Residual stock | Hold unsold units after completion | $1m–$35m | 75% to $7.5m; 70% above | 75% above $7.5m | 36 months to $7.5m; 18 above |
| Pre-development | Move a site to construction readiness | $1m–$35m | 75% to $7.5m; 65% above | 75% above $7.5m | 36 months to $7.5m; 18 above |
| Construction | Build | $5m–$50m | 70% | 80% | 24 months |
| Vacant land | Land for future development | $1m–$35m | 60% to $7.5m; 50% above | 65% | 36 months to $7.5m; 18 above |
| Sub-divided land lots | Refinance or release equity on unsold lots | $1m–$35m | 67½% to $7.5m; 60% above | 75% to $7.5m; 65% above | 36 months to $7.5m; 18 above |
Source: Pallas Capital Lending Product Guide, October 2026.
The bigger the loan, the lower the LVR
Pallas lends up to 75% of the property's value on investment, residual stock and pre-development loans under $7.5 million, and less above that.
Between $7.5 million and $35 million the cap falls to 70% (65% for pre-development), and a second mortgage can take total borrowing to 75%.3 Land is lent more conservatively: 60% on vacant land under $7.5 million, 50% above it. Residual stock and pre-development loans above 70% LVR carry a higher rate.
Construction needs few or no pre-sales
Pallas lends up to 70% on construction loans from $5 million, and its guide sets pre-sales at "nil to minimal".
Above $25 million it charges a line fee of two and a half per cent. At any size, a second mortgage can take total borrowing to 80%. Terms run up to 24 months, interest only.3 Its May 2026 flyer lists a $31.1 million construction loan in South Coogee at 70% LVR over 19 months.5
On a construction loan, Pallas asks for these.4
- Background of the borrower and builder, with previous projects
- Plans and specifications
- Building and planning permits
- Development timeline
- Project feasibility
- Valuation
- Initial quantity surveyor's report
Income can be shown by an accountant's letter up to $7.5 million
For loans under $7.5 million Pallas offers lo-doc: a repayment declaration from the borrower plus a letter from their accountant, instead of two years of financials.
Full doc means "Last 2 years of financials or tax assessment notices; OR 2 payslips".4 Lo-doc is considered up to 75% LVR.5 Above $7.5 million, lo-doc isn't offered.3
Full doc or lo-doc
| Full doc | Lo-doc | |
|---|---|---|
| Loan size | Any loan size | Under $7.5m |
| What you provide | Last 2 years of financials or tax assessment notices, or 2 payslips | A repayment declaration from the borrower and a letter from their accountant |
| Max LVR | As the loan type allows | 75% |
Sources: Pallas Capital Lending Product Guide, October 2026; product flyers, May 2026.
Every loan is interest only, so the exit comes first
Every Pallas loan is interest only, for 18 to 60 months, so it must be repaid in full at the end, by selling the property or refinancing.
Pallas says it weighs "borrower/sponsor experience, reputation, and primary asset value".6 Its flyers allow extra repayments but no redraw.4
ASIC said in June 2026 that private credit faced "its first real test", and named the property risks: "cost escalation, project delays, soft presales, unsold stock, and weaker refinancing conditions".7 Each of those can delay the sale or refinance that repays the loan.
Before signing, settle who refinances it, on what numbers, and what happens if the sale takes longer.
Not sure the exit stacks up? Send us the numbers and we'll test the refinance before you sign. Test the exit →
The broker's commission is inside the fee, not on top
Pallas's application fee starts at one and a half per cent of the loan (one and three-quarters for construction), and Pallas says that fee includes the half a per cent it pays the introducing broker.
Its guide says every loan includes brokerage of half a per cent in the establishment fee, plus trail of a quarter of a per cent, payable to accredited introducers.3 Pallas quotes its rates as "From" and "Variable" and revises them monthly,6 so we quote them on the deal, not here.
Who Pallas suits, and who it doesn't
Pallas suits investors and developers who borrow through a company or trust and have a clear way to repay within five years.
- Investors and developers who already borrow through a company or trust
- Deals of $1 million or more with a clear sale or refinance in view
- Construction from $5 million where a bank wants more pre-sales than the project has
- Industrial, office, retail, accommodation and specialised assets4
- A home you or your family will live in
- Borrowing in your own name
- Loans under $1 million
- A long hold that needs a 25 or 30 year loan
Send us the deal: the property, the entity, the amount and how it gets repaid. We'll tell you within 24 hours whether a private lender like Pallas or a bank fits better. Send us the deal →
How we worked this out
We read Pallas Capital's October 2026 product guide, its May 2026 product flyers and its website on 15 October 2026, and section 5 of the National Credit Code as compiled on 1 July 2026.
Where the flyers and the guide differ (the flyers mention loans from $0.5 million and construction from $3 million), we used the newer guide. Pallas's rates change monthly and are left out.
Sources
- National Consumer Credit Protection Act 2009, Schedule 1 (National Credit Code), section 5, Compilation No. 52, 1 July 2026. ↩
- Pallas Capital, "Inside the room: Melbourne developers see opportunity emerging in a challenging market", 30 September 2026. ↩
- Pallas Capital, Lending Product Guide, Australia, October 2026, v1.0 (lender credit policy as at 15 October 2026). ↩
- Pallas Capital, Commercial, Pre-Development and Construction Lending flyers, May 2026. ↩
- Pallas Capital, "Your Deal. Our Backing." flyer, May 2026. ↩
- Pallas Capital, Borrowers and Lending Opportunities pages, read 15 October 2026. ↩
- ASIC, "ASIC puts private credit on notice, ahead of 30 June valuations and reporting", 18 June 2026. ↩