Written by Fox Modular | 7 December 2023 | Company News
Bankwest has moved to support the Western Australian housing market with the introduction of an additional progress payment to support the rapid delivery of off-site constructed, modular properties for home buyers in WA.
The decision follows ongoing conversations with the Housing Industry Association WA on opportunities to remove barriers to home buying and support the rapid supply of much-needed new homes in WA.
Modular homes, also referred to as prefabricated, kit, or transportable properties, are dwellings constructed away from the purchased land and later delivered to site for installation and connection to utility services.
The builds maintain adherence to building and construction standards, while generally being more affordable and significantly quicker to complete than on-site dwellings, making them an appealing option in the current market.
However, a challenge for the development of modular homes has been the structure of progress payments to construction companies, which has typically involved just two stages – deposit and completion.
The upfront construction outlay prior to companies recouping expenses can result in the cancellation of contracts and creates barriers for a construction method that could prove desirable for customers in the current market.
Bankwest has sought to eliminate those barriers with a policy adjustment that will enable customers to authorise an additional payment stage for up to 95 per cent of the value of the land (90% for investment loans).
The additional progress payment will be available for applications without Lenders Mortgage Insurance (LMI) and with a Loan to Value Ratio (LVR) equal to or lower than 80 per cent.
Read more over at The West Australian or drop us an email at firstname.lastname@example.org to chat about your options!