Squirrel, Master Builders launch turnkey housing funding

Squirrel and Master Builders have launched a funding partnership for pre-sold turnkey housing projects, aimed at eligible builders that need finance for projects with committed buyers.

The product, called 100% Turnkey Funding, is designed to cover the full land cost and full construction cost, less a 20% implied builder margin. Depending on a builder's margin, that could mean the entire project is funded without the builder contributing its own capital.

That shifts the usual pattern for turnkey developments, where builders often have to carry land and construction costs until the buyer settles on the completed home. The partnership is intended to reduce the capital tied up in already sold homes and help builders move more quickly to their next site or project.

Access to finance has been a persistent pressure for the construction sector. Master Builders' State of the Sector research has ranked capital access among the top three pressures on building businesses for four consecutive years, with 78% of respondents identifying it as an issue in 2026.

How it works

Under the model, the buyer still signs an unconditional Sale and Purchase Agreement and pays a deposit. Squirrel then funds the eligible project, the builder completes the home, and the buyer settles when construction is finished.

The offer is limited to eligible pre-sold turnkey projects with a genuine buyer, an unconditional Sale and Purchase Agreement, and a deposit. Builders and projects must also meet Squirrel's lending criteria, and the model will not suit every builder or every development.

An important part of the structure is the Master Build Completion Guarantee, which helps underpin the funding approach alongside the selection of eligible builders.

Master Builders said the partnership was developed in response to financing constraints facing many firms in the sector.

"Access to finance remains a real constraint for the sector. A builder can have sound projects and customers ready to go, but if their capital is tied up until those homes settle, they may not have the capacity to act on the next opportunity," said Ankit Sharma, Chief Executive, Master Builders.

"By bringing together capable Master Builders, the Master Build Completion Guarantee and a funding model that recognises those protections, this partnership can help good building businesses keep projects moving. The potential flow-on is more local work and more quality homes being built," Sharma said.

Sector pressure

The new funding model comes as builders continue to face a tougher financing environment, even for projects that already have buyers lined up. In a standard turnkey arrangement, a signed sale does not remove the need for the builder to fund land purchase and construction before final settlement.

That can leave smaller and mid-sized operators with cash locked into work that is commercially de-risked by a committed buyer but not yet completed. As a result, builders may be unable to secure their next section, start another house, or expand output despite having demand in hand.

Squirrel said its experience in both builder finance and buyer finance helped it identify this gap in the market. The lender arranges about $4 billion in home loans each year and provides more than $1 billion in construction lending annually, with more than 1,600 development projects funded to date.

John Bolton, Founder and Group Head of Property Finance, Squirrel, said the model changes the source of funding rather than the homebuyer process.

"You can't build the next house when all your money is tied up in the last one. That's the problem we kept hearing from builders. They've got good projects, they've got buyers, and they've got the appetite to keep building, but access to capital puts the brakes on. We built 100% Turnkey Funding to help change that," said Bolton.

Eligibility focus

The partnership has been developed exclusively between Squirrel and Master Builders, with access restricted to eligible Master Builders. That gives the industry body a direct role in designing a finance product aimed at one of the sector's longest-running operational constraints.

For builders, the commercial attraction is preserving working capital. Rather than recycling their own funds from one completed settlement to the next, firms that meet the criteria may be able to keep projects progressing while reducing the amount of equity locked into construction already backed by a buyer.

For the wider market, the significance will depend on how widely builders can qualify and how often the funding structure can be used in practice. But the immediate purpose is narrower: to support pre-sold projects that might otherwise stall because the builder's capital is committed elsewhere.

Master Builders' research found that access to capital remained one of the sector's three biggest pressures for the fourth straight year, identified by 78% of respondents in 2026.