The future of modular home financing in Australia is looking brighter than ever! The Commonwealth Bank of Australia (CBA) has just announced game-changing updates to its lending policies for prefabricated modular homes—one of the biggest developments we’ve seen in this space.
If you’ve ever considered building a modular home but found financing to be a hurdle, this could be the breakthrough you’ve been waiting for!
For years, securing financing for a modular home has involved more steps compared to traditional builds. Buyers often had to fund the initial stages themselves, as banks were cautious about releasing funds before the home’s delivery and installation, due to the lack of collateral during off-site construction.
CBA’s new approach changes this! ...
Recognising the rise of modular homes as a top solution in the construction industry—delivering high-quality, efficient builds with quicker turnaround—CBA is stepping up to make financing more accessible, meeting the growing demand from Australian homebuyers.
Modular homes will soon be eligible for financing with standard construction loans, aligning them with traditional home loans. This removes a major barrier, making modular homes—like those from Anchor Homes—more accessible to more Australians!
Here’s what you need to know about CBA’s upcoming policy updates:
Progress Payments: Customers will now be able to access progress payments of up to 60% of the total contract price before the home is installed—provided they own the land outright. This increases to 80% if using a CBA-accredited prefab manufacturer.
Industry Support: CBA has become the first bank to join 'PrefabAUS', the peak body for Australia’s off-site construction industry, reinforcing its commitment to the future of modular building.
Standard Contracts: The bank is sponsoring the development of a standard construction contract for modular homes, which will make financing even more straightforward in the long run.
CBA’s decision levels the playing field between modular and traditional home financing. It removes the need for buyers to have substantial cash reserves or navigate complex loan processes.
This means:
Easier access to financing means more buyers can now consider modular homes without the financial strain of upfront costs.
Smoother project execution allows modular builders, including Anchor Homes, to work more seamlessly with clients, ensuring a hassle-free process from start to finish.
Faster funding ensures that modular home projects stay on track, preventing unnecessary delays and getting you into your dream home sooner.
CBA’s new policy changes are expected to take effect later in Q1 2025, making it the first major bank to offer tailored financing for modular homes.
With this new approach, access to financing is set to become much easier, and other major lenders are likely to follow suit.
This year marks the 20-year anniversary of Anchor Homes. Since 2005, we have built a reputation for quality, innovation, and reliability in modular home construction. With over two decades of experience, our expert team is ready to support you throughout your modular home journey and help you navigate this new financing opportunity.
Our proven expertise, efficient build process, and forward-thinking designs ensure that every Anchor Homes project is delivered to the highest standards. We focus on making the entire experience as straightforward as possible, creating a home that aligns with your vision and lifestyle.
At Anchor Homes, we’re excited to see modular housing become even more accessible. If you’ve been thinking about building your dream home, now is the perfect time to start planning.
Get in touch with our team to explore your options and stay ahead of these exciting changes!