If you’re considering buying a transportable home, one of the best first steps is to understand how finance works when your new home is being built offsite.
Prebuilt home finance works a little differently from a standard mortgage, with funds needed at different stages of the build. While we don’t provide finance ourselves, we work with a number of lenders with a great track record of helping people purchase their transportable home.
Understanding Your Transportable Home Finance Options
A prebuilt or transportable home is built offsite before being delivered to your property, so a conventional home loan isn’t always the best fit. Instead, some banks offer construction or prebuilt home loans that release funds as the build progresses.
These loans can also account for some of the things that are different about building offsite, including additional insurance during construction and transport, and requirements your builder may need to meet before construction begins.
We’re proud to work with Westpac, which offers a specialist Prebuilt Home Loan. Other lenders, including ANZ and BNZ, have their own home lending options, so it’s worth talking to your bank or mortgage adviser about what may be available to you.
Financing an Ezyline Home with Westpac
Westpac’s Prebuilt Home Loan is purpose-designed for prefabricated homes and covers everything from minor dwellings and granny flats to large family homes. Unlike a standard mortgage on an existing house, it provides funding while your Ezyline home is being built, so you can make the required progress payments during construction.
At Ezyline, our standard payment structure is:
- 5% deposit when you sign
- 10% when the floor is down
- 25% when the roof is installed
- 25% when the home is wind and weatherproof
- 25% when the interior fit-out is underway
- 10% before your home is transported or handed over.
For eligible borrowers, Westpac’s prebuilt home finance may be available with as little as a 10% deposit. Conditional approval may also give you time to find the right section and plan your build before everything is finalised.
As with any finance offer, there are conditions attached, so take a look at Westpac’s Prebuilt Home Loan information and talk directly with their team about your circumstances, eligibility and current lending terms.
What to Consider Before Applying for Finance
Your deposit, income, existing debt, section, building contract and individual circumstances can all affect the finance available to you.
If you’re hoping to borrow with a smaller deposit, there are additional requirements to be aware of. Westpac currently states that high-LVR lending is only available for a new build with a single fixed-price contract specifying a completed, ready-to-live-in property. There are additional insurance requirements that may also apply.
If you’re a first-home buyer, another option could be to use your KiwiSaver. Inland Revenue says eligible first-home buyers who have been KiwiSaver members for at least three years may be able to withdraw most of their savings towards their first home, provided at least $1,000 remains in the account.
Check the current KiwiSaver first-home withdrawal rules to see what applies to you.
Transportable Home Finance with Ezyline
While there are a range of prebuilt home finance options available to explore, Ezyline Homes isn’t a financial adviser or lender. We encourage you to speak directly with your bank or mortgage adviser for financial advice and to find the right option for your circumstances.
Want to get a better idea of the whole process before talking finance? Download our Transportable Homes Buyer’s Guide for more on buying, building and budgeting for your Ezyline home.