Commonwealth Bank Makes Financing Prefabricated Homes & Granny Flats Easier
February, 2025.
The Commonwealth Bank of Australia (CBA) has introduced new loan terms for prefabricated homes, improving financing for granny flats and small homes in New South Wales and Victoria. This means that architecturally designed granny flats are now easier to fund.
CBA’s New Financing Approach
Previously, borrowers had to cover 90% of construction costs upfront. CBA now offers progressive payment financing, covering up to 80% of costs before installation. This policy, the first of its kind from a major Australian bank, takes effect this quarter. Loans of up to $1.5 million are available for homes over 30 square metres.
The Popstar Luxury Granny Flats by Pleysier Perkins Mini Homes
Impact on Luxury Granny Flats in NSW and Victoria
Pleysier Perkins Mini Homes can serve as a luxury garden studio, teenage retreat, or granny flat. The new financing terms streamline the lending process for homeowners looking to add a premium prefabricated dwelling.
CBA’s initiative aligns with the Albanese government’s goal of 1.2 million new homes by 2029. A Productivity Commission report found prefabrication reduces costs by 20% (not factoring in transport costs though, as these can vary substantially) and cut project timelines by half. Faster completion allows homeowners to enjoy their luxury granny flats sooner, which can mean savings on often higher interest payments or other costs during construction.
Homeowners now have expanded options for financing high-end prefabricated homes, enhancing accessibility to quality, architecturally designed living spaces, especially luxury granny flats!
The Commonwealth Bank of Australia has introduced new financing rules, allowing up to 80% of prefabricated home costs to be funded before installation. Learn how this benefits granny flat owners in NSW & Victoria.
