Equity loans

House site ready to buildTransportable homes, modular homes, prefabricated homes and factory built homes are specialised types of buildings that require specialised finance advice.

Because most lenders will not release funds prior to the completion of the house we have found other solutions that will allow our customers to finance their transportable home.

By using the equity in the land or another property you can have the funds released before the property is complete! We are specialists in equity loans and can help you find the cheapest loans available even when your bank has said no!

How does it work?

You refinance your current loan and by using your land or another property as security release enough money to fund the project or to meet the builder’s drawdown requirements. If possible we can deposit the funds in an offset account until they are needed. Although most lenders do not like releasing equity from vacant land or have location restrictions we have lenders that can consider these types of loans.

An example

Jenny bought some land five years ago and has now paid off most of her mortgage. The land has also increased in value to around $180,000. She would like to stop renting and build her dream transportable home.

Refinance mortgage: $50,000

Construction cost: $150,000

Other costs: $5,000

TOTAL LOAN: $205,000

Even though Jenny needs to borrow more than her land is worth this is still ok. She applies for a $205,000 loan based on the on completion value of her new home. The bank that we apply with agrees to release 95% of the land value prior to the house being complete, this is $171,000. This is enough money for Jenny to refinance her current loan and get the house complete and on site, after which the bank releases the other $34,000 for Jenny to complete her landscaping and other minor improvements.

Who this loan is for?

Owner occupiers, investors, purchases, refinances, construction. All types of transportable homes are usually acceptable including removal homes or second hand dwellings being relocated. The loan is assessed based on the current property value only. Low doc is acceptable in some circumstances.

Who this loan is not for?

People with very little equity. We recommend that these people apply for a guarantor loan.

Type of lender

Major bank.

Type of loan

Typically this loan is available with both basic and professional pack discounts. In most cases we can obtain a rate that is similar to those offered by the major banks.

Maximum loan amount:


Maximum % of property value (LVR):

95% of the total value of any properties owned. 80% for low doc loans. We can also lend based on the on completion value of the house and land, however we can only release 95% of the land value prior to the house being on site.

Maximum loan term

30 years.

Frequency of payments

Weekly, fortnightly or monthly.

Interest only option

Available, maximum of five years. Interest only payments must be made monthly.


Yes, a fee may apply.

Fixed rate option

Yes, up to 5 years available. Note that we recommend you should only fix part of your loan so that you can redraw the progress payments as you need them from the variable portion.

100% offset account

Available on some loans.

Lender Mortgage Insurance (LMI)

Yes payable if you borrow over 80% of the property value. 60% for low doc loans.


The details above are for the most commonly used equity loans from one of our lenders. The details of your loan may differ slightly, please refer to your loan offer for the full & correct details of your loan. The loan may take up to six weeks to be advanced if we are refinancing your current lender so please apply for the loan well in advance of entering into a building contract or agreement to purchase a removal home.

Where to from here?