Financing Options
What is the process?
The majority of a modular home is 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 its still under construction. In our experience, we find that most banks will not release progress payments until the home has been fixed onsite or until the final completion of the project.
Talk to your home loan provider
From our experience, we recommend that you approach your preferred bank or credit union very early in your decision making process and make them aware of your intentions and how much you will be needing to borrow. Depending on your equity and overall financial situation, your bank or credit union will then advise how they can assist you.
It will be necessary to explain to the bank that they will be financing a fully completed new home and that you are not purchasing a kit home (AKA a flat pack home). Kit homes are much more of a challenge to secure a loan for.
Let us help secure your loan
We are able to work around the usual payment terms on the condition that the bank provides us with a copy of the loan approval and a ‘to-be-built’ valuation.
If your bank will not release payments until practical completion of the project, a 1.5% finance surcharge will be added to your purchase price. This is to cover the cost of Westbuilt providing debtor finance for the home while it is still in the factory.
Talk to our valued finance contacts
Over the years, Westbuilt has developed a working relationship with both Aussie Home Loans and the Regional Australia Bank in order to help our customers smoothly secure financing.
Get in touch with us or our finance contacts below for more in-depth details surrounding this step.
Regional Bank Australia
Your Finance Broker - Coolum Beach
Aussie Home Loans - Tamworth
Ready to start your modular home journey?
Modular Home Financing FAQs
Can I get a loan for a modular home?
What if my bank doesn't finance modular homes?
What is the process for getting a loan for a modular home?
The loan process can vary by institution, but generally follows these steps:
-
- Initial Discussion: Speak with your banker or broker to discuss what you want to do. During this step, the bank may grant you pre-approval.
- Application: Once you are happy to proceed with getting a loan, the bank will require you to start the application process. Please note that the timeframe of this step can vary greatly depending on your circumstances and the bank's process.
- Valuation: As part of the process, the bank may conduct a desktop valuation of the project to ensure that it represents market value.
- Approval: Once you have completed the above steps, the bank will approve your application for a loan and make funds available for you to pay for your home.