Is bank financing available on a prefabricated house in Australia?

We give you some of the ins and outs of bank financing for a prefabricated house.

Yes, finance for prefabricated houses in Australia is available. However, you do need to explain to your bank that a Tasbuilt Home is NOT a kit home or a relocatable home. It is a home that is simply built off-site and then installed permanently on your site on steel and concrete foundations with services connected just like a traditional build.

The whole project is covered under a fixed-price contract, and Tasbuilt is a fully licensed builder, with all relevant insurance required by the banks.
Here at Tasbuilt, we offer finance options that will help your Tasbuilt Homes experience easier. Finance is available through many well-known finance providers, including Commonwealth Bank, Urban Money & MyState.

Many banks have their policies on progress payments, how much and when they will pay. It is also important for you to know that Tasbuilt can negotiate with your bank to arrange the progress payments in a way that suits them.

If you cannot raise that necessary equity or provide a guarantor, we would be happy to adjust the progress payment structure, providing we had a secure contract and guarantee from your bank that they have approved your loan and will make the payment once the house is on your site.

For a bank to loan money to you to purchase a home, banks will need some form of security for the loan whilst the home is still under construction. In the case of a conventional home built, the security is mostly a mortgage on the land plus the portion of the house that has been constructed to date. With a modular home, the bank will only have your land as security during the construction phase.

The majority of our modular homes are constructed off-site in a factory and therefore built on a different premise to the mortgaged block of land. This means that the bank has no mortgage, and therefore no security, on the modular home whilst it's still under construction.

Handing over keys


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