The New South Wales government is expanding its AU$1 billion Pre-sale Finance Guarantee program to better support affordable housing and smaller regional residential developments.
Initially launched in September 2025, the program uses the NSW government’s balance sheet to bridge the gap to commercial finance. It has already accelerated the construction of more than 600 homes across Sydney and regional NSW, inspiring similar initiatives in South Australia and Western Australia.
Following direct feedback from developers, financiers, and community housing providers, the state government is loosening the criteria to further support affordable housing.
Under the new rules, the program will support 100 per cent of affordable housing dwellings in a single project up to a value of AU$30 million, provided they are delivered by not-for-profit community housing providers. A dedicated pool of AU$80 million has also been locked away to assist these providers at any given time.
Furthermore, to stimulate construction in regional areas and support smaller builders, the previous AU$5 million minimum project value has been axed. It will be replaced with a requirement that a project must include at least four homes. For boutique developments with fewer than 20 homes, the program can now guarantee up to 75 per cent of the dwellings.
Treasurer Daniel Mookhey said: “The Pre-sale Finance Guarantee shows how this government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster.
“This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline.”
Minister for Housing Rose Jackson said the changes effectively dismantle the financial hurdles that have traditionally stalled essential community developments.
“We know community housing providers are ready to build more homes — too often they’re held back by barriers to finance,” Jackson said.
“Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner.”
The government confirmed the expanded criteria will not impact the capacity of existing, eligible proposals already awaiting support under the guarantee.
