Transportable home finance

What is a modular home?

Modular homes are designed and built in sections inside a factory rather than being built on site. They are no different from other permanent structures once delivered to your land and connected to utilities.

Generally, the name "modular home" is used for transportable homes of higher quality. They are architecturally designed, energy efficient, conserve water and use materials that have a lower impact on our environment. The end result is a modern home with both style and an attractive price tag.

Many people confuse modular homes with mobile homes, even though they have very little in common. A modular home is permanent whilst a mobile home can be easily relocated to a new site.

Where in Australia are modular homes being used?

Modular homes are used Australia wide, including capital cities and regional areas. Many of the builders deliver to all parts of Australia and are limited only by possible site access constraints such as small bridges or narrow roads.

Modular homes are not generally used for mining villages or temporary housing due to the higher price tag. Lower priced transportable homes can be mass produced for those types of developments.

Modern homes come in all shape and sizes. The designs can be modified to allow you to build units, villas, duplexes or other developments. Because of the increasing design quality and flexibility modular houses are becoming more popular than ever.

Who are the builders of modular homes?

There are now many builders in Australia that build high quality modular homes. Timberline Homes, Parkwood Homes, Mod-Eco and Dome Shells are a just a few of the popular builders based in NSW. Modscape in Victoria and Statewide Constructions in Tasmania (see picture on this page) are some of the other better known builders. Domus Victa and Amoveo are two of the few builders that can deliver nationwide.

Most builders have a selection of pre-designed modular homes that are significantly cheaper than site built homes. You can choose to modify the designs and select higher quality finishes if you are happy to budget in a higher price.

Go to our Links section to find a modular builder close to you.

Quality compared to site built homes

Modular homes are of comparable quality to traditional site built homes. They are built to withstand the stress of transportation and still maintain their structural integrity. Just like all houses, they are designed and built to meet industry standard building codes and regulations.

Due to the fact that modular homes are prebuilt, they have less design flexibility to accommodate your individual needs when compared with site built homes. However, advances in technology over the past few years have allowed complex individually designed modular homes to be constructed. The majority of builders have a wide range of product designs to choose from, whether you are on a budget or building a luxury home.

Custom built modular homes are becoming increasingly common. Many of the builders now employ in-house design teams and architects. Some even have their own research and development teams! These changes to the way builders do business have reduced the cost of customizing your home.

Modscape is well known for building unique houses that accommodate stylish architecture with environmentally sustainable design principles.

Benefits of modular homes

There are a number of reasons why people choose modular homes:

• Quality - A high level of quality is now possible with factory built accommodation.
• Price - costs are much lower than traditional built homes due to significantly reduced consultation, construction time, traveling and builders on-site time
• Speed - modular homes are faster to build than houses built with traditional construction methods. Unlike with site built homes, there are no weather delays!
• Ability to build in rural areas - A modular home is an ideal choice if your land is in a remote area. However, you will need to make sure that there is suitable access to your land!
• Modular homes are structurally sound, so you can take your dream house with you to your next block of land! Although they are not intended to be moved, they are far easier to relocate than a brick home. With some of the modular home builders you can easily increase space by just adding an extra module. Build what you can afford now then build the rest in a year or two.

How much does it cost to build a modular home?

Costs vary within the industry, depending largely on the quality of the building materials and construction methods used by your builder. Choosing a standard modular home that the builder has to offer is usually much cheaper than a custom designed home.

Indicative prices range from $1,300 / m² mid range to $2,500 / m² for luxury properties. Steel framed homes tend to be more expensive than timber frame. Talk to your builder to see which type of frame is most suitable for your home.

The transportation cost is another factor to take into account. Delivery fees depend on how far away you are from the builder you chose to work with and the number of modules to be delivered.

How long does it take to build a home?

One of the benefits of using modular homes as mentioned above is the incredible speed of construction and completion!

Traditional site built homes can take up to 6 months, if not more to be completed. A modular home will take less than 6 weeks!

It will usually take less time if you choose from the available product range available from your builder, because this will reduce the design time. If you wish to have your house customized, you need to allow time for initial design consultation, the actual design process as well as the time to build the modules in the factory.

Another possible delay might be waiting for council approval. If you are not sure about how long council approval might take, talk to your real estate agent, local council or to the builder. DA turnaround times vary significantly from council to council.

Finally, the builder will transport the modules to your land and install them, which will usually take just a few days. Connections to utilities such as power and water might take from a few days to 2 weeks depending on the location of your new home.

And then it's time to move in!!!

Applying for a modular home loan

If you've already spoken to your bank you'll know that most lenders don't like funding the construction of a modular home. Worse still many bank managers simply don't know their own guidelines and approve the loan only to have construction drawdowns refused later on!

The number one problem encountered by people trying to build a modular home is that their lender refuses to release funds prior to the house being finished! Builders need to be paid in stages as the house is built however from a banks point of view there is nothing to be taken as security until construction is complete!

We work with lenders that are less conservative and are able to release funds to you prior to completion using equity in the land or other properties you may own. If you are in a good asset position then read our about our competitive and flexible equity loans.

If you are a first home buyer or you have no deposit, the guarantor loan is the perfect solution for you. A friend or family can guarantee your loan until construction is complete using their property. It is simple, cheap and can allow you to build without a deposit.

Unfortunately if you have no equity or you don't have support from a friend or family member who can guarantee your mortgage, it is very unlikely that the lenders will consider lending you money.

If you are unsure whether you are qualified for a home loan, do not hesitate to call us! We can quickly work out your options as we are the only mortgage broker in Australia that specializes in financing modular homes.

Where to from here?

• Take a look at our Frequently Asked Questions (FAQ).
• See if you meet our Lender Guidelines.
• Read about our popular equity loans or guarantor loans.
• Send us your full details to get an obligation free quote.
• Download our Transportable Home Finance brochure.