Finance Information

We are here to help

When it comes to financing your modular or kit home project in Australia, you’ll encounter a different set of challenges compared to traditional construction. Mainstream banks typically don’t offer standard construction loans for such unique undertakings. We’re here to guide you through this process, and we recommend early communication with your bank. However, we’ve got some valuable insights to make your journey smoother!

If you need more information on building your dream PLACEit home, don’t hesitate to reach out to us.

Modular Vs Kit Homes: Understanding Your Financing Options

Modular Homes

Modular construction offers several advantages when compared to a traditional build, including a fixed project cost and a clear timeline. Your home is assembled by industry experts, who can create an accurate assessment of the required time and costs. However, during construction, the bank typically only considers the value of the land portion of your house and land as security. This is as the house is not yet on the site for most of the process so they do not treat it as part of the site until installed.

If you are not able to borrow against the value of your land to secure a loan, they may require alternative forms of collateral, such as additional equity or a willing guarantor. Banks assess each case individually. It’s crucial to approach your bank, mortgage broker, or lender early and inform them of your modular home project. Let them know our modules are fully completed homes, built by licensed professionals under a Master Builders fixed-price contract. This will help them differentiate from an application to build a Kit Home under an owner-builder license.

Once the new module is installed on site, banks treat it as a fixed asset associated with the property, as with any other house. This can allow you to refinance with your bank, considering the combined value of the house and land. Some Australians who’ve embarked on modular builds previously arranged personal loans to cover initial stage payments and later refinanced when the home was on-site.

Kit Homes

Kit homes generally fall under the owner-builder loan category and are typically secured against your existing assets or paid for outright. As with modular homes, early communication with your lender is essential to explain your construction plans.

Partners in Financing

At PLACEit, we’re actively forging partnerships with key lenders who are venturing into this exciting and rapidly expanding realm of construction. Reach out to us for recommendations on lenders you can collaborate with to bring your vision to life. We’re here to help you every step of the way in building your dream home.

Chat to us about your project.

Contact us