With faster build times, and streamlined processes, modular homes are rapidly rising in popularity, both here in Tasmania, and indeed across the globe. However, a stumbling block for many of our clients is how to finance a modular home. The good news is, Tasbuilt has resolved this issue for our clients, and we enjoy a solid relationship with a great cross section of banks and finance companies across Tasmania.
The issue for finance companies financing a modular home is that there is not currently in Australia (that we are aware of) a mechanism by which the finance company can hold security over a home that is being constructed in a builders factory, until it is secured to the clients site. To overcome this, the client can use equity from other properties or assets they own as security until the home is onsite, or use a guarantor to provide the needed level of security.
This is where Tasbuilt can step in to help. Where other finance options have been exhausted, Tasbuilt offers a deferred payment schedule. This means, as the builder, Tasbuilt receive a standard construction deposit, and then defer all other progress payments until the home is installed on site. The bank will then send a valuer to ensure the home is indeed secured to the site, and at that stage the bank can release all the progress payments up to that stage.
There is a bit of fine print of course – Tasbuilt still need to receive a copy of full finance approval from your bank or finance company, and there is a small charge for the deferred payment schedule, roughly equal to the value of interest over the time that the payments are deferred.
For more information on financing your modular home, or for a details for helpful banks and mortgage brokers in Tasmania, contact Tasbuilt today on 1800 63 93 10.
Note to banks and mortgage brokers
If you have a product you believe would be beneficial to our clients, we would love to hear about it – we are always looking to explore new options for our clients.