NDIS Property Loans: Your essential guide to funding and property ownership

The need for SDA in Australia

Gaps in supply and rising demand

Despite government funding and support, the Australian SDA market faces a critical shortfall in available properties. While around 28,000 participants are expected to be eligible for SDA, current supply falls short, particularly in regional areas and for high physical support designs.

This demand-supply imbalance presents a market opportunity. The sector is still maturing, with increasing awareness among private investors helping to bridge the gap.

Investment returns and social impact

SDA housing is backed by secure government payments, often tied to long-term tenancies. According to industry estimates, rental yields can range between 8–14%, depending on location, design category, and tenant matching.

Beyond financial returns, SDA property investment contributes to a greater cause — supporting Australians with disabilities to live independently in safe, modern, and inclusive homes.

Key differences from traditional home loans

NDIS property loans involve several important distinctions compared to traditional home loans, particularly due to the requirements around Specialist Disability Accommodation (SDA) compliance. These include:

• Specialised property valuations - unlike standard loans that use generic residential valuations, NDIS loans require assessments by valuers familiar with the SDA market. These valuations consider tenant demand, location, and compliance with NDIS housing standards.
• Mandatory build certification - traditional loans do not require compliance with any specific construction guidelines. In contrast, properties financed through an NDIS loan must meet the NDIS Design Standard and be certified by a qualified SDA assessor before they can be eligible for rental income under the scheme.
• Enhanced loan security assessment - lenders evaluate more than just the borrower's financial position. They also assess the property's viability in the SDA market, the strength of partnerships with registered SDA providers, and long-term demand in the chosen location.
• Staged funding/progress payments structure - standard home loans typically involve a single settlement payment. NDIS property loans, especially for new builds, are released in drawdowns tied to construction milestones - such as slab stage, lock-up, and practical completion - with construction progress valuations required at each stage.

These additional layers of scrutiny and structure ensure that the property will meet both the physical and operational requirements to serve NDIS participants effectively, while also protecting the lender’s and investor’s interests.

How the loan process works

Pre-application stage

Your journey typically begins with a consultation with a specialist lender like Yard Home Loans who understands the SDA sector. They’ll assess your financial position and help define your investment goals.

Documentation gathering

Investors need to prepare:

• Personal ID and income verification
• Payslips and/or business financials (if self-employed)
• SDA project documents (e.g. floor plans, builder contracts)
• Letters of intent from SDA providers (if applicable)

Formal application & assessment

Lenders will conduct:

• Full credit assessment
• SDA-specific property valuation
• Project and construction risk analysis
• NDIS certification verification

Loan offer and settlement

If approved, the loan offer includes funding terms and milestone-based drawdowns tied to your builder’s construction progress. Settlement occurs progressively as construction meets predefined stages (e.g. slab, lock-up, completion).

Key features & benefits of the NDIS Property Loan

Key features and benefits of Yard's NDIS property loan include:

• Competitive interest rates - options include Principal & Interest or Interest Only, depending on your financial strategy.
• Expert guidance - work directly with lending professionals who understand NDIS legislation, property requirements, and approval pathways.
• Fully featured loan products - enjoy benefits like online account management, additional repayments, redraw, split facilities, and 100% offset accounts.
• Flexible documentation for self-Employed - use low-doc loan pathways with alternative income verification where necessary.

Challenges & upfront costs in SDA construction/investment

Higher upfront and valuation costs

Compared to traditional investment properties, SDA developments come with:

• Increased land and build costs
• Specialised architectural design fees
• Mandatory SDA assessments and enrolment costs

Managing construction timelines

SDA construction often takes longer than conventional builds due to compliance requirements. Investors must:

• Budget for potential delays
• Include contingencies for material/labour shortages
• Maintain clear communication with their builder

Meeting design standards

All SDA homes must comply with NDIS Design Standard categories: Improved Liveability, Robust, Fully Accessible, or High Physical Support. Only properties enrolled with the NDIS Quality and Safeguards Commission are eligible for SDA payments.

Start your NDIS investment journey today

Interested in learning how an NDIS property loan can support your investment and social impact goals? Speak to one of our specialist lending experts today for tailored advice or start your loan application process online.