The new Pearlfisher fund will back small developments of up to 20 homes.
Financier Pearlfisher Capital aims to give the mainstream banks a run for their money with a mortgage fund targeting low-rise residential developments.
The just-launched fund will back developers of small subdivision and townhouse projects who are finding it increasingly difficult to get finance from retail banks, director Tony Abraham said.
The new Pearlfisher fund will lend on developments of 10 to 20 homes, and is unlikely to back high-rise apartments, he said.
The banks had much-reduced appetites for smaller, higher-risk residential developments because of the dollar return they could get on them, Abraham said.