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Prefabricated homes, or prefab, are homes that are partially built offsite then transported to be permanently affixed to your land. This allows for significantly faster turnaround times - where a traditional build takes around 12 months on average to complete, a prefab home can be ready in just 12 weeks.
Explore the benefits of choosing a prefab build as well as the construction and financing process below.
CommBank is the first major bank to offer finance during offsite construction.
While a traditional build takes on average 12 months to complete, a prefab home can be ready in just 12 weeks.
Access payments even while the house is being built offsite to avoid being out of pocket.
Many prefab builders allow you to customise your home. Some builders even allow you to add modules at a later stage so you can expand as your family grows.
Let's look at an example, let's say your prefab home is going to cost $350,000 to build.
With a CommBank Assessed Manufacturer this means you can access up to 80% of the build contract price* which in this case could give you $280,000 to put towards offsite construction.
That is $280,000 you don't have to fund out of your own pocket. The remaining funds can be released once the home has been permanently fixed to the land and connected to all services such as water, power and sewerage.
*It is important to note, the loan amount available during offsite construction is the lesser of 80% of the build contract or 150% of the land equity. For any other prefab manufacturer, you can still access up to 60% of the build contract price which in this scenario would be $210k, or 120% of the land equity.
To start your prefab journey, book an appointment with a CommBank Lending Specialist.
Book an appointment
You can book an appointment with one of our lending specialists today.
When booking your appointment select 'A new home loan' then 'Building a home'.
Your CommBank lender will reach out through your preferred method.
As seen on Future House with Jamie Durie, discover the world of prefab living and explore the innovative building techniques and financing behind these modern homes.
In episode 1 of Future House, we meet Krista and Kirsty whose tree change from Sydney’s Inner West nearly ended in disaster. We also see how CommBank Lending Specialist Amanda came to the rescue by obtaining loan approval for their prefab construction.
In episode 2 of Future House, we see how prefab manufacturer Oly Homes is growing to meet demand within the prefab and modular housing space. With the support of CommBank, Oly Homes has been able to expand their operations to almost double their yearly output.
Building Australia’s housing future with prefabrication
Prefabrication has the ability to help the construction industry lift productivity enabling faster, more efficient housing delivery to meet growing demand. It can also help the sector to provide the number of homes Australia desperately needs.
Prefab: The housing trend turning heads
Clever, customisable and often cost effective, prefabricated homes are redefining what it means to build your dream home.
Could prefab homes help ease Australia's housing shortage?
Industry experts met at SXSW Sydney to discuss whether prefab construction methods could help ease housing supply and price pressures.
CommBank Assessed Manufacturers are manufacturers who, at a point in time have been assessed as meeting CommBank’s criteria for this form of lending, including having an established onshore manufacturing facility, financial performance assessed by CommBank as satisfactory, and satisfied a factory inspection.
Financial risk
By requesting progress payments prior to the prefab home being affixed to the land, the land will be used as the sole security up until the prefab home is transported to site. In the event of builder non-completion or liquidation prior to the prefab home being affixed to site, this may result in negative equity and you will still be required to repay the construction home loan.
Customer protections vary state to state across Australia in the event of builder liquidation, disappearance, or death prior to completion.
Before making a decision in relation to whether this type of construction arrangement and loan type is right for you, we recommend that you seek independent legal and financial advice, including advice about building warranty insurance or other insurances that may cover potential risks and impacts to your financial situation.
Loan applications are subject to credit approval. Fees, charges, terms and conditions apply. As this information has been prepared without considering your objectives, financial situation or needs, you should consider its appropriateness to your circumstances before acting on the information.
CommBank Assessed Manufacturer selection
CommBank does not endorse, recommend or guarantee the services, quality of work or future financial stability when it comes to any CommBank Assessed Manufacturers. Customers are responsible for choice of prefab home manufacturers.
Prefab is the umbrella term used to describe homes which are partially built offsite in factories, which can also be referred to as transportable homes. Modular and kit-homes are two different types of prefab homes:
While a standard build might take around 12 months on average to complete, a prefab home can be ready in just 12 weeks. This is largely because there are no weather-related disruptions, production can occur all year around, and building in a factory means multiple components can be completed at the same time.
Much like a traditional build it really depends on your individual circumstances. While prefab homes may not always be a 'cheaper' alternative, there are a few clear benefits, for example faster build timelines mean that those who rent while their home is being built may save on months of rental expenses.
For those interested in prefab but don't know where to begin, you can chat with a CommBank Home Lending Specialist. We are always happy to help no matter where you are in your prefab journey.
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